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SOLID SENIOR CARE business with serious health issues driving the sale… unfortunately. This is a Very large senior care Franchise brand with consistent TV marketing that is just about in every market in the US! Established in 2010, the business provides in-home care to seniors, assisting them with activities of daily living, including companion care and hands-on personal care services. The company has active clients and a roster of quality caregivers, as well as trained/seasoned staff and coordinators.
Sales 2018: $750,143 / SDE: $126,021 (17% of sales to SDE)
Sales 2019: $871,314 / SDE: $93,630 (11% of sales to SDE)
Sales 2020: $787,063 / SDE: $120,650 (16% of sales to SDE)
There is a VERY good explanation as to why the 2019 earnings were down and when you speak with us about this you’ll understand why. Complete anomaly.
HOW TO MAKE MORE MONEY OUT OF THIS LOCATION:
As to the overall % of sales to SDE…16% and 17% are seriously low as we typically see with this brand around 18% to 29%. With some analysis and help from our firm and the franchisor we can likely help you determine the issues that can be resolved to get this up to (in our minds) norms. Consider if the business was doing just 20% of sales to SDE, this would put about $157,000 in your pocket a year, before debt service. Meaning you could likely pay back your loan much faster and/or take a much larger salary out of the company. At 25% (which we’re selling one with the brand right now doing this %) this would put almost $200k in your pocket a year on 2020 sales! Once you get into the project we can easily supply support documents that will bear these percentages out. Of course, you’ll want to always have your accountant review these assumptions prior to putting any money at risk.
POSSIBLE DEAL STRUCTURE WITH BANK FINANCING…
• Projected ROI of 23%
• Total purchase price: $298,500
• Down payment: $89,000
• SDE (what you would earn in the business): $113,433 (*3-year weighted average)
• Amount financed $209,500 ($298,500 - $89,000 = $209,500)
• Debt service per year (annual note payment): $27,911 (10 years at 6.00% apprx.)
• SDE less debt service/note payment: $85,522 ($113,433 – $27,911 = $85,522)
• Assume - New owner to pull $65,000 a year out of the business in wages
• Remaining SDE (cash flow) after owner wages and paying annual debt service = $20,522 ($113,433-$65,000-$27,911 = $20,522)
• Return on investment or your return on injected capital (down payment) year after year = 23%! ($20,522/$89,000) Tough to get this in the stock market!
• This scenario does not include working capital.
• Important: Do not take our word for it on the investment information, call and meet with your accountant and make sure he/she agrees with the outline above. Do not make any financial investment into this business where your money could be at risk until you agree with your financial advisors opinion and are comfortable with the presented numbers from the seller.
No Experience In The Medical Industry Is Needed. Extensive training and ongoing support provided. Seller will provide training during transition also.
>>>>>>Non-Disclosure Agreement (NDA) is required. The sale is confidential which is why we are not publishing sensitive financial information or the name. Information provided to qualified buyers with NDA in place. Established Franchise resale with clients, employees, referral sources, sales and cash flow.
*Gross Revenue and Cash Flow stated by seller. All information, data, financials, valuations, appraisals, inventory, FFE/Assets/Equipment, real estate values, etc. must be verified with the seller and buyer's own professional independent advisors, CPA, etc.
CONTACT US TODAY For the NDA For Further Details. We will email the short 3-minute online NDA form shortly after we receive your request. Please be sure to check your spam/junk folders also.
Established, furnished office. Office furniture, equipment, etc. Staff and quality caregivers. Chagrin Valley, Portage & Southern Geauga Counties and surrounding areas.
Aggressive marketing, advertising, building referral sources, and relationships in the community, attending trade shows, joining local business associations/chambers, overseeing the business daily, following systems in place.
Franchise Business Review lists senior service businesses in the top six recession-proof industries.
The senior care industry is growing and will continue to grow with the senior population expecting to grow by 25% over the next 10 years. More recently driven by concerns brought on by COVID-19 the industry has seen an increased interest in in-home services as seniors and their families question the safety of moving into a group living situation such as a senior apartment, assisted living or nursing home. Additionally, those in the hospital are choosing to be released home with non-medical in-home care services instead of being transferred into a rehabilitation facility due to safety concerns. More seniors are now opting to age in place and bring help in or move in with family and hire additional support services to come into their family home. This is in addition to an earlier survey conducted by AARP that stated that at that time (prior to COVID) 86% of seniors wanted to age in place. Families also move their loved one out of assisted living and into their own home, hiring additional assistance due to their concerns about the safety of their loved one living in a group setting. Changes in the payment reimbursement model in January of 2020 for hospitals and skilled nursing has also increased client flow. Facilities are no longer able to keep patients as long as they once were under Medicare guidelines which has led to an increase in the need for in-home care.
Client services 24/7.
No experience in the medical industry or home health industry is needed. Extensive training/support provided.
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