The Company is a locally owned private duty home-care provider serving clients in Southwest Michigan with support from two strategically placed offices. Ownership is semi-retired and continues to provide general oversight of the Company’s operations remotely – often from out of state. Well-established systems and protocols and a highly autonomous and competent management team make this arrangement possible. A more active and involved owner could undoubtedly grow this Company.
Two leased offices approximately 1,000 sqft each. Lease A one year left. $700/month + utilities (˜$825). Lease B 3-year lease at $1120/month which includes utilities. Expires 7/31/19. Both offices are in SW Michigan. Leases are just average office space. Customers do not come to the office.
Quite a few growth opportunities exist. Here are a just a few: 1. The single best strategy to grow the Company would be for the new owner to work in the business. Current ownership has been very content to maintain the current level of revenue so the Company does not infringe on semi-retirement. Presently, the existing owners work about 1.5 days/week in the business and often remotely from their home or Florida; 2. Respond to Demographic Trends – The Company is well-positioned to benefit from a confluence of demographic and economic trends: The aging of the baby boomer generation. In a recent survey, 90 percent of seniors expressed a desire to remain in their homes as long as physically possible. With advances in home healthcare technology this should be increasingly possible. Hospitalization costs have continued to increase significantly. Aging consumers have embraced the home healthcare trend; and 3. Bolt On Other Agencies – Growth through acquisitions may be an excellent way to grow the Company as the Home Care Provider Industry is highly fragmented. IBISWorld, a well-respected market research firm, estimates that the three largest home care agencies in the US generated less than 10.0% of industry revenue in 2016.
There are a number of items that set this Company apart: 1. Unlike several of its competitors in the area that focus on Medicare clients, the Company is targeted towards individuals and families with resources sufficient to afford private insurance or to pay out-of-pocket for care; 2. Early and significant investments in SEO and content marketing have ratcheted this Company to the top of Google searches for home care in Southwest Michigan; and 3. The Company has multi-year contracts with two non-profits that receive funding from the State of Michigan. While these contracts are not as lucrative as the Company’s other clientele, they do provide revenue stability and flexibility in terms of when service needs to be provided.
Full Retirement. Owners are semi-retired already.
Ownership willing to assist in reasonable transition period.