Opportunities
Translating & Interpreting for Healthcare & Schools
Sold
A down payment of $51,000 returns $99,301 in the first year after debt payments!
Specifications
Priced at $510,000, a down payment of $51,000 returns $99,301 in the first year after debt payments – a 195% return on investment! Serving large health care, municipal legal, and school systems, along with commercial businesses, Social Security Administration, and individual customers, the seller of this LSP business is willing to do performance based earnout to show vested interest. Interpreting 50+ languages accounts for 85% of revenues, with translation of 150 languages accounting for the remaining 15%. With 102 contracted employees, 75 of which are local interpreters, this business operates with low overhead, earning a 46% profit margin last year. 2020 numbers were down due to COVID-19, as 80% of their client base consists of schools and hospitals. There is complete confidence that the business will return to normal levels as establishments are re-opening. Established in 1997, many customers have been with this firm for over twenty years and have strong working relationships to draw upon. The owner remotely manages the day-to-day operations and routes the work to the team of translators. The translating duties could be distributed to a contracted employee, if desired.
Current administrative operations are completed remotely and both contracted coordinating assistants work part-time from their home. The bank of 75 contracted interpreters are local and take assignments throughout Northeast Ohio and work in over fifty languages. The team of 25 translators work in over 150 languages and are all remote hires.
This small but mighty team has grown their customer base and maintained a positive reputation in the area. To build upon current successes, investment in marketing could be effective in generating new clients as could networking with local business owners. The company does not currently have a scheduling portal – a new owner who has a technology background and could implement this feature would be incredibly beneficial to the business.
Business Highlights
- Year Established: 1997
- Location: Cleveland, Ohio
- Service Area: Interpreting: Northeast Ohio; Translating: Nationwide
- Services: Interpreting (85%): Northeast Ohio; Translating (15%): Nationwide
- Clients: Large health care systems, municipal legal system (courts and lawyers), commercial businesses, individual customers, school systems
- Lease: Work remotely! Low overhead!
- Reason for Selling: Retirement planning
- Contracted Employees: 102: 2 Coordinating assistants, 75 local interpreters, 25 remote translators
- Seller Training Period: 6 months
- Growth Opportunities: Invest in targeted marketing to reach new customers, consider upgrading technical operations to increase efficiency, network with local business owners to generate connections
- Current Owners’ Responsibilities: Operates business
Financial Highlights
- List Price: $510,000
Cash Flow Analysis
| Description of Financial Statement | Tax Return Cash | Tax Return Cash | Tax Return Cash | Tax Return Cash | Notes |
| 2020 | 2019 | 2018 | 2017 | ||
| GROSS SALES | $353,119 | $768,545 | $736,752 | $544,939 | |
| Net Income Shown on Financial Statement | $85,318 | $180,098 | $159,552 | $101,228 | |
| ADDBACKS | |||||
| Compensation to Owner | $25,000 | $50,000 | $50,000 | $30,000 | |
| Meals & Entertainment | $0 | $509 | $832 | $832 | |
| Professional Fee | $7,308 | $1,400 | $0 | $2,700 | |
| Legal | $5,500 | $0 | $0 | $0 | |
| TOTAL ADDBACKS | $37,808 | $51,909 | $50,832 | $33,532 | |
| Seller's Cash Flow = Total Addbacks + Net Income | $123,126 | $232,007 | $210,384 | $134,760 | |
| Profit Margin | 34.86 % | 30.19 % | 28.56 % | 24.73 % |
- Profit margin: 35%
- 2020 numbers were down due to COVID, as 80% of their client base consists of schools & hospitals
Typical Clients
- Large health care systems
- Municipal legal system (courts and legal)
- Commercial businesses
- Individual customers
- School systems
- Social Security
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
2020 / COVID Notes
Hospital systems and school systems were not at full capacity, which impacted the 2020 numbers; however, there is complete confidence this business will flourish again post-pandemic. The seller is willing to do a performance based earnout to show vested interest.
Services
- Interpreting (50+ languages): 85%
- Healthcare
- Courts, immigration, lawyers
- Commercial business
- Events, conventions, sports games
- Schools – 15 local school districts, IEP, testing, conferences, documents
- Translating (150 languages): 15%
- Commercial business
- Brochures
- Advertising
- Instructions
- Documents
- Documents
- Legal documents
- Technical documents
- Personal records
- Financial documents
- Commercial business
Employees
Total Contracted Employees: 102
- 2 Coordinating assistants
- 75 Local interpreters
- 25 Remote translators
Growth Opportunities
- Invest in targeted marketing to reach new customers
- Consider upgrading technical operations to increase efficiency
- Network with local business owners to generate connections
Valuation Details
Funding Example
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857