Return To Opportunities List

Opportunities

In-Home Senior Care Services in Nebraska – Owner Manages Remotely

Selling at a 3.1 multiple with substantial growth opportunities!

CASH FLOW
$151,115

Specifications

  • Price
    $465,000

  • Revenue
    $487,303

  • Profit Margin
    31%

  • Cash Flow
    $151,115

  • Reason for Sale
    Retirement

  • Location
    Southeast Nebraska

  • Service Area
    Southeast Nebraska, Southwest Iowa

  • Employees
    29: 1 scheduler and payroll, 28 caregivers

  • Account Receivable
    $40,000

This in-home senior care business is selling at a 3.1 multiple with substantial growth opportunities! Serving Southeast Nebraska and Southwest Iowa, clients are mostly private pay and the majority of payments are through personal estates. Current hourly charge is $24-$30 with some clients needing 24/7 care, and they are poised to increase gross revenue in January 2021 with a price increase to $25-$35/ hour. The owner has worked out of his home for 10 years and a new owner can manage the business remotely. The protected territory of this franchise includes Southeast Nebraska and Southwest Iowa for a total of eight counties and the franchise agreement was recently renewed for another 10 years. Revenue is split 51% Nebraska counties and 49% Iowa counties; however, much of the region has been untapped, leaving plenty of room for growth within the current service area including Northwest Missouri.

 

The company provides services like cooking, light housekeeping, shopping, personal grooming, doctor visits and other non-medical assistance including overnight care and 24/7 care.  Their 28 peer caregivers - with a third of them having a 5+ year tenure - are paid hourly and are assigned to clients within their driving radius. With no physical office space, they have little to no overhead and employees considered part time, do not receive health benefits. The company has 2 owners, but only one of them is involved in the day-to-day operations and oversees HR, services, financials, the office, marketing efforts, as well as client relations. The team also includes a part time scheduler who handles payroll, scheduling, and billing.

 

Priced at $465,000, a 12.5% down payment of $58,125 returns $91,649 in the first year after debt payments – a 158% return on investment! Business is currently booming because most clients who would have gone into nursing homes or rehab facilities are now seeking in-home care. This company is having to turn down 2-5 potential clients on a weekly basis due to lack of caregiver capacity. There is a lot of potential to grow this business to $500K- $1M by hiring more caregivers and expanding services to cover the Missouri area.

Business Highlights

  • Year Established: 2010
  • Location:  Southeast Nebraska
  • Service Area:  Southeast Nebraska, Southwest Iowa
  • Services: Senior care: Meals, personal care, dementia/memory care, housekeeping, transportation, respite care, and 24-hour care
  • Clients: Seniors living at home
  • Reason for Selling: Retirement
  • Employees: 29: 1 scheduler and payroll, 28 caregivers
  • Seller Training Period: 3 months (more as needed)
  • Growth Opportunities: Hire more caregivers and increase client base, expand services to the Missouri area and surrounding areas
  • Current Owners’ Responsibilities: Owner 1: HR, services management, financial oversight;  marketing, office management, client relations; Owner 2:  Works 5-10 hours a week as a fill in caregiver

Financial Highlights

  • List Price: $465,000

 

  • Gross Sales:
    • 2020: $487,303
    • 2019: $479,817

       

  • Cash Flow:
    • 2020: $151,115
    • 2019: $112,166

       

  • A/R: $40,000

*amounts may vary

Cash Flow Analysis

  • Profit margin 2020: 31%

Services

Senior care:

  • Meals
  • Personal care
  • Dementia/memory care
  • Housekeeping
  • Transportation
  • Respite care
  • 24-hour care
  • Overnight Care

Employees

Total Employees: 29

  • 1 Scheduler and payroll
  • 28 Caregivers

Growth Opportunities

  • Targeted advertising
  • Grow current areas through connecting with local providers
  • Work through Medicare regulations to accept those payments in the future

Valuation Details

The Firm Advisors used a cash flow valuation methodology to determine the purchase price of the business.

Cash flow is the sum of business net income plus any owner perks and any non-onward expenses. Then we prescribe a multiple based on 20 parameter which valuate the health of the business. For this valuation, we used the 2020 cash flow.

The formula used is as follows:

Cash Flow        x  Prescribed Multiple =   Fair Market Value

 

With this information, the computation is as follows:

 

$151,115            x                3.1               =    $468,457

Funding Example

Purchase Price:   $465,000

 

    12.5%Buyer Down Payment    $58,125 Must be unborrowed funds
    12.5%Seller Financing or Equity $58,125 5-year term at a rate of 4.50% = a monthly loan payment of $1,084
    75%Bank Loan $348,750 10-year term at a rate of 6% = a monthly loan payment of $3,872

 

  • Cash Flow: $151,115

     

  • Annual Payment:

     

    • To Seller: $13,004
    • To Bank: $46,462

       

  • Net Profit (after expenses and loan payment): $91,649

Attachments

Document Title / Description

This folder is empty.

Access to this Deal Room is restricted

Would you like to access the deal room?

Yes, please

Interested in
this business?

Complete the following information to sign an NDA and see more details!

Already have an account? Log in here.

Click to download NDA form

Print, sign and send to:

210 N 78th St. 2nd Floor
Omaha, NE 68114

Or fax to:

f 402.939.0857

Thinking of Selling?
When selecting an M&A firm, please use the following Scorecard: click here for our M&A Scorecard


The Firm is not a real estate brokerage and therefore the staff will not handle any aspect of the lease, sale or purchase of real estate.