St. Louis business brokers specializing in the buying and selling of established businesses. Also serving Springfield, Kansas CIty and Columbia.
314-548-2153

pbbid169

PBBID: 169

Business Description: Home Care Business for Sale!

Categories: In-Home Care, Medical, Services

Broker Summary: The Sellers have already established an extremely successful business in just over 3 years of operations. This independent business is well-positioned in the healthcare market and will ride the tremendous wave of aging seniors for the next 15 to 20 years. The US Census projects that the number of seniors aged 65 and older will increase by 80% between 2010 and 2030. The business model is to hire caregivers (some certified, but most not) to go into the client’s home to provide non-medical services. These services include such things as meal preparation, light housekeeping, bathing assistance, companionship and medication reminders. About 20% of the revenue in 2015 is expected to come from programs funded by the state of Illinois, which has typically reimbursed providers within 30-45 days after receipt of invoice.

The Owners are looking to sell the home care company in order to focus more attention on their other profitable businesses. The Owners started this business to help seniors in their community, and it quickly grew larger than they were able to manage comfortably alongside their other businesses. It can be managed locally by an owner-operator to maximize profitability. Or, it could be managed remotely with a strong office manager / business development person, supplemented with some clerical assistance.

This represents a tremendous financial opportunity for a business savvy individual. Sales for 2015 (it’s 3rd full year of business) were $1.8 million, generating a nearly 65% growth over prior year sales of $1.1 million. Even with such great growth, there are many opportunities to take it even higher. Advertising spend in 2015 was roughly $7k, and very little time or effort is put into marketing or business development. The business continues to receive most of its new clients through word-of-mouth referrals or through strong relationships with placement offices of local branches of state agencies.

The business is also very profitable. About 70% of sales go to compensation for caregivers, payroll taxes and worker’s comp insurance – all variable costs. The Owners have kept fixed costs low, which results in great profit numbers and financial stability. Net income per the 2014 tax return was in excess of $200k, with 2015 at $346k. After taking into account payments to officers and other items, the adjusted SDE for 2014 was $260k, and for 2015 was $475k. The primary constraint on future growth is hiring more caregivers, which would require no future capital outlays, so the sky is the limit!

In summary, this company has grown quickly and consistently since its inception in 2012. With low fixed costs and roughly 30% variable margins, any future growth will drop substantially to a bottom-line that already boasts an adjusted SDE of $475k for 2015. At an asking price of $1.1 million, a payback period of just over 2 years is already in the run rate. Ramp up marketing and business development and continue to fuel the historical growth rate, and get paid back in 2 years. And then, sit back and imagine where you can take this business in 10, 15 or 20 years, when the Boomers hit their peak!

SALES201520142013
GROSS SALES$1,838,497$1,117,397$380,940
SELLER DISCRETIONARY EARNINGS$474,763$263,598$77,447

Location: Illinois - (100 miles from St Louis)

Owners Hours: 25-30 hrs/week per owner

Employees: 40 Full Time, 25 Part Time

Square Footage: 500ft

Lease Amount: $400

FF&E: $5,000

Asking Price: $1,100,000