Exceptional Adult Residential Support Business Medicaid Paid IDD

RVA Business Brokers are delighted to bring this incredible opportunity to purchase an residential adult care business with five beautiful homes, 34 employees, and housing 19 clients

The adult day support business was established in 2007.

The business is 100% Medicaid paid. They;ve never advertised, receiving most residents by case worker referrals.
The Company helps mentally challenged clients prepare for daily living with personal hygiene and health support. Six residents require skilled nursing care, which is provided by 7 licensed nurses.

Virginia's Department Behavioral Health and Developmental Services (DBHDS) requires operators to obtain a license. Medicaid raised their tier level payments to over 40% on July 1, 2022, so 2023 is the first full year that the effect of this increase is recognized. On average, each resident represents $162,053 in annual revenue.
They have built an incredible adult residential support business. The first home welcomed clients in 2006. They have added 4 more homes over the past 18 years.

The seller is ready to retire and motivated to sell. The business is priced to sell at 3.33 x EBITDA. In comparison, the average of 37 comparable sales is 4.47 EBITDA.

Broker will accept LOIs through Wednesday February 21st. Obviously an offer over asking, cash rather than financing, proof of cash or a bank pre-approved letter, a deposit non refundable or deposit with conditions and the qualifications of buyer will be evaluated by broker and seller to determine best buyer suitability.

Investment Highlights
- 32% EBITDA Margin in 2023
- $3,805,263 2023 Revenue
- $1,199,388 EBITDA
- 32% EBITDA margin
- FF&E valued at $60,000
- 34 loyal employees with 7 nurses.
- Located in the Richmond VA Metro Area
- The properties and leased and ready to transfer to the new owner.
- Virginia requires a DBHDS license
- All residents are referred by Medicaid case workers.
- Medicaid raised the payment structure on all tiers in 2022. 2023 is the first full year at the new payments.
- Comparables are available to review.
- The Residential Intellectual Disabilities Facilities is a $39.8 billion industry nationwide.

Residential Homes
All 5 residential group homes care for clients in quiet neighborhood throughout the Richmond Metro Area.
Four of the homes care for 4 residents each. The fifth home cares for 5 residents.


Quick Sale
The majority owner is at or beyond retirement age and wants a quick exit, thus the pricing is well below comparable sales.

This business was under Letter of Intent (LOI) contract for 3 1/2 months. The IDD specialist buyer backed out after acquiring a contract on a MUCH larger firm in the Midwest. They feared they would not have the band width to transition both. The removed themselves from this opportunity with the due diligence process underway. This is an incredible opportunity for the buyer as all of the due diligence information is in the brokers data vault. An Asset Purchase Agreement was vetted by both sides' (never signed) counsel and is ready to be signed with obvious cursory review by new buyer's counsel.

The broker's data vault is ready to be downloaded and is ready for a buyer. The data vault includes due diligence information and is set up for a quick and painless close. Broker can offer up lenders ready to do this deal and lawyers familiar with DBHDS that will make for a painless process.