Lender Ready Senior Care, Appraised Price* Only A 4X Multiple!
Asking Price: | $16,774,000 |
Gross Revenue: | $12,875,000 |
Cash Flow: | $3,733,933 |
Established Year: | 2017 |
Many Active Accounts. Training/Support Provided.
HERE is a business (in-home, non-medical, senior care) whereby, if you owned it by this coming January, the value of it will have increased by $4,256,000, and all you had to do...is open the door and walk in. We project, if the business is re-appraised this January, and IF the sales and earnings stay on track (which they are), the appraised value at that time would be $21,000,000! Buy it for $16M and change and the new value will likely be $21M by this January. We have this completely broken down for you in our package which will explain the whole thing and how to sell it for that new price in only a couple of years (if you wish). It all has to do with the current appraisal and the serious upward trend the company is on. In fact, if our offices were closer to this location, we’d buy it ourselves. No joke. This is one of THE largest senior care locations for this top franchise brand in the entire US. This purchase would put you in a very small ‘club’ (probably 1% -2%) of all senior care franchises, by ALL BRANDS, in the nation. As we sell almost every brand, and 10 to 18 of them a year, we should know. The point is, this is a fantastic location to own and gives you serious bragging rights, nationally. Further, the location drops more to the bottom line than 99% of all the locations we see. In fact, this location is dropping about 33% of sales to earnings and a normal location might drop 15% to 25% (maybe). You don’t have to come from Wharton to know this is impressive. What is more, this ratio should be quite sustainable, long term.
BUYER REQUIREMENTS: As we have done our work in advance to pre-qualify for this location, buyers must have a minimum personal liquidity (injectable capital before OTHER partners or investors) of $925,000. This location will require about $3.7 million down if bank financing is going to work at the listed (appraised price).
MORE ABOUT THIS BUSINESS MODEL: The business focuses on sending caregivers to a client’s personal home/residence to help them with daily life activities, such as light cleaning, food preparation, grocery shopping, walking with them or just keeping them from falling. The idea is to keep the individual in their home.
POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT (ROI):
• Projected ROI (OWNER OPERATOR): 33% (On SDE)
• Total purchase price: $16,774,000 (The price advertised is not an asking price, it is the Appraised price)
• Down payment: $3,700,000
• Current SDE (cash flow of the business):$4,200,000* (current projections for 2024)
• Amount financed: $13,074,000
• Debt service per year (annual note payment): $2,116,968
• SDE less debt service: $2,083,032
• Assume a New owner to pull $850,000 a year out of the business in wages.
• Remaining SDE (cash flow) after owner wages and paying annual debt service: $1,233,032; So even after paying your debt service AND taking out $800,000 in a wage you should still have $1,233,032 (left over) to do with as you wish; Pay down debt early, take it out in additional wages, invest, or go to Vegas!
• 33% is the Annual return of investment on Your injected capital/down payment each year. A great year in the stock market would be 15% to 20% and the average is about 7%.
• This scenario does not include working capital. Likely to be secured with a bank as part of your loan package, if qualified.
• 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.
SALES/SDE HISTORY
2021: $2,223,831 / $385,343
2022: $5,432,296 / $1,591,725 (EBTIDA=$1,421,390)
2023: $9,120,905 / $2,969,995 (EBTIDA=$2,799,660)
*2024 (projections - likely to hit): $12,789,000 / $4,251,886 (SDE)
(*) 4x multiple derived from using this years projected SDE/Price