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Nurse Staffing Agency in Texas with 32% Profit Margin

Sold

Year-over-year growth in sales – steady flow of clients each week!

CASH FLOW
$1,911,740

Specifications

  • Price
    $6,050,000

  • Revenue
    $5,969,179

  • Cash Flow
    $1,911,740

  • Location
    West Central Texas

  • Service Area
    Statewide

  • Profit Margin
    32%

  • Employees
    1 FT Office Manager/HR + 1 FT Staff Coordinator; all recruited nurses are also W2 employees

  • Intangible Assets
    Solid reputation in the state of Texas, word-of-mouth referrals, well-established client base

  • Reason for Sale
    Approaching retirement

Due to the supply and demand of nurses, this staffing agency has a steady flow of clients each week and has seen year-over-year growth in sales and consistently high profit margins! Established in West Central Texas for over 20 years, the company provides Registered Nurses, Licensed Vocational Nurses, Certified Nursing Assistants, and Certified Medication Aids for hospitals, clinics, nursing homes, government, state, and schools on an as-needed, short-term, or long-term basis. Partnering with some of the leading healthcare facilities in the state of Texas, each nurse recruited by the agency is sent to the client as a W2 employee, which sets them apart from other staffing agencies. They average 65-75 active employees (RN’s, LVN’s, CNA’s, and CMA’s) who are in the system and ready to work when needed. As facilities are constantly faced with last minute and temporary staffing needs due to vacations, staffing shortages, and open shifts as a result of scheduled and unscheduled absences, this agency has a steady flow of clients each week.

 

Office staff includes 1 Office Manager/HR and 1 Staff Coordinator, and all nurses in their database are employed by the agency. All applicants are thoroughly screened before being submitted to a facility’s HR department. Base hourly rates for the nurses range from $18-$25/hour for CNA’s, $30-$37/hour for LVN’s, and $40-$47/hour for RN’s, with rates going higher if the nurse is working in a specialty unit or Covid unit. The number of clients/positions filled varies by the week, depending on demand; in general, the agency distributes 35-45 paychecks each week to the nurses.

 

Priced at $6,050,000, this agency already has a solid reputation and a well-established client base. A new owner could easily boost revenue by implementing a marketing strategy, creating a social media presence, and updating the company website. This would be a great opportunity and highly beneficial for an existing staffing agency to purchase.

Business Highlights

Year Established: 2000

Location: West Central Texas

Service Area: Statewide

Services: Healthcare staffing (Registered Nurses, Licensed Vocational Nurses, Certified Nursing Assistants, and Certified Medication Aids) for hospitals, clinics, nursing homes, government, state, and schools on an as-needed, short-term, long-term, or permanent basis

Clients: Healthcare facilities throughout Texas

Lease: 900 sq. ft. office space; Rent is $7,500/year – this includes all utilities

Reason for Selling: Approaching retirement

Personnel: 1 FT Office Manager/HR + 1 FT Staff Coordinator; all recruited nurses are also W2 employees

Seller Training Period: Negotiable

Intangible Assets: Solid reputation in the state of Texas, word-of-mouth referrals, well-established client base

Growth Opportunities: Implement marketing strategy, update website, create social media presence

Current Owner’s Responsibilities: General oversight; not needed in the office

Financial Highlights

  • List Price: $6,050,000

  • 2021 Annualized Cash Flow: $1,911,740
  • 3-Year Average Cash Flow [’20-‘21]: $1,399,320

*amounts may vary

Cash Flow Analysis

Description of Financial StatementP&L Statement
Jan-Sept 2021		Tax Return
Cash		Tax Return
Cash		Tax Return
Cash		Notes
2021202020192018
GROSS SALES$4,476,884$3,909,882$2,873,329$2,065,597
Annualized$5,969,179
Net Income Shown on Financial Statement$1,433,627$471,899$471,477$192,333
ADDBACKS
Interest$0$0$396$0
Contributions/Donations$178$0$0$0
Officer Compensation$0$415,000$405,000$300,000
TOTAL ADDBACKS$178$415,000$405,396$300,000
Seller's Cash Flow = Total Addbacks + Net Income$1,433,805$886,899$876,873$492,333
Annualized
Profit Margin32.03 %22.68 %30.52 %23.82 %
  • Profit Margin: 32%
  • High profit margins are due to the fact that there is little to  no overhead, as well as the supply & demand for  nurses. Nursing shortages have been in existence for over 30 years.

Valuation

Funding Example

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Print, sign and send to:

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

Or fax to:

f 402.939.0857

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The Firm makes no warranties or representation in consideration to the information provided above. All communication regarding this business must occur directly with The Firm Advisors, LLC. The Firm is not a real estate brokerage and does not sell real estate. The Firm solely advises on exit strategy.