MergerPlace

Profitable Reno Senior Care Services

Reno, Nevada


  • Asking Price: $1,250,000
  • Gross Income: $1,419,277
  • Cash Flow: $380,801
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: Not Disclosed
  • Listing ID: #223924
  • Established: Not Disclosed
  • Employees:

Business Description

THIS IS A SUCCESSFUL IN-HOME SENIOR CARE Company, established in 2009. *Lender Ready for qualified buyers*. The company serves a large geographical area of Reno, Sparks and surrounding area. The business has many active clients, high-quality caregivers, and seasoned staff. The company has an incredible reputation in the community, providing in-home care to seniors, assisting them with activities of daily living, including companion care and hands-on personal care services. The owner had a WALL STREET LEVEL APPRAISAL completed on the business. Wells Fargo, US Bank, Radius Bank, CIBIC Bank and about 10 other major banks use this valuation firm to do their own internal appraisals for their underwriter teams. The point is, this is a solid appraisal number. Contact us for the NDA for a detailed discussion.

*For bank financing, buyer is required to put down approx. $250,000 as down payment. Put down $250k, pull a $150k a year salary and STILL have roughly $97k left over to either pay down debt quicker or to live on.

POSSIBLE DEAL STRUCTURE:
• Projected ROI of 39%!
• Total purchase price: $1,250,000 (Appraised Price)
• Down payment: $250,000 (20% x $1,250,000)
• Current *Weighted SDE (what you would earn in the business): $380,801
• Amount financed: $1,000,000 ($1,250,000 - $250,000 = $1,000,000)
• Debt service per year (annual note payment): $133,225 (10 years at 6.00% apprx.)
• SDE less debt service: $247,576 ($380,801 – $133,225 = $247,576)
• Assume - New owner to pull $150,000 a year out of the business in wages
• Remaining SDE (cash flow) after owner wages and paying annual debt service = $97,576 ($380,801 – $150,000 - $133,225 = $97,576)

• Return on investment or your return on injected capital (down payment) year after year = 39%! ($97,576/$250,000) …Tough to get this in the stock market!!

• This scenario does not include additional working capital.

• 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.


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Sales History:
2017: $1,609,376
2018:$ 1,475,001
2019:$ 1,447,545
2020 Projection: $1.4M to $1.5M (based on income statements to the end of September).
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THE SENIOR CARE INDUSTRY is growing and will continue to grow with the senior population expecting to grow by 25% over the next 10 years. More recently driven by concerns brought on by COVID-19 the industry has seen an increased interest in in-home services as seniors and their families question the safety of moving into a group living situation such as a senior apartment, assisted living or nursing home. Additionally, those in the hospital are choosing to be released home with non-medical in-home care services instead of being transferred into a rehabilitation facility due to safety concerns. More seniors are now opting to age in place and bring help in or move in with family and hire additional support services to come into their family home. This is in addition to an earlier survey conducted by AARP that stated that at that time (prior to COVID) 86% of seniors wanted to age in place. Families also move their loved one out of assisted living and into their own home, hiring additional assistance due to their concerns about the safety of their loved one living in a group setting.

Changes in the payment reimbursement model in January of 2020 for hospitals and skilled nursing has also increased client flow. Facilities are no longer able to keep patients as long as they once were under Medicare guidelines which has led to an increase in the need for in-home care.
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NO EXPERIENCE IN THE MEDICAL INDUSTRY Is Needed. Extensive training and ongoing support provided. Seller will train during transition.

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NDA: A Non-Disclosure Agreement is required. The sale is confidential which is why we are not publishing sensitive financial information or the name. Information provided to qualified buyers with NDA in place.

*Weighted Revenue. *Weighted Cash Flow. All information, data, financials, valuations, appraisals, real estate values, etc. must be verified with the Seller and Buyer's own professional independent advisors, CPA, etc. Buyers should always verify all information with the seller and their own advisors before putting any money at risk.

CONTACT US TODAY For the NDA For Details. We will email the short 3-minute online NDA form shortly after we receive your request. Please be sure to check your spam/junk folders also.


Business Details

Primary Business Category: Health Care - Nursing & Residential
Location: Nevada
Metropolitan Area: Reno

Company Information

Home Based: No
Franchise: No
Relocatable: No
Number of Employees:

Financial Information

Asking Price: $1,250,000
Gross Revenue: $1,419,277
Cash Flow: $380,801
Seller Financing Available: No

Property Information

Facilities:

Super nice, well-maintained and nicely decorated, fully equipped office. Quality caregivers. Huge service territory encompassing Reno, Sparks and surrounding area.

Growth & expansion opportunities:

Implement aggressive marketing strategy. Build relationships in the community. Build strategic partnerships. Multiple revenue streams for diverse services. •Today, there are over 40 million adults age 65+ in the U.S., but this population is expected to reach 89 million over the next 40 years• People will continue to age and need the proper level of care despite what happens in today’s uncertain economy• Fabulous system growth #’s caring primarily for parents of the Baby Boomers. The first Baby Boomers just started turning 65 in 2011, and now 10K people per day turn 65 in the US• Health Care Reform is a positive to this business- This is the viable, lower cost, long term care option• Senior care ranks among the top five most profitable sectors

Competition:

The market for aging persons in need of home care and institutional clients is rapidly expanding. Already healthcare agencies are absolutely crucial to facilities lacking much needed staff. This trend will only continue considering the average age of the RN population. The average age of the RN population in March 2000 was estimated to be 45.2 years. In 2000, only 31.7% reported being under the age of 40. The most significant drop in numbers was seen among those RNs under the age of 35. In 1980, 40.5% of RNs were under the age of 35, compared to 18.3 percent in 2000. The RN population under 30 dropped from an estimated 25.1% in 1980 to only 9.1% in 2000. The baby boomers stand on the threshold of a big change. The oldest of them are nearing their 65th birthdays and their needs and wants are in flux. Their purchases will begin to revolve more around health care and housing than on rock and roll and athletic gear. **************************************************** Why is there a boom in the service area?--- Beyond elder care. An increasing number of the elderly couples and singles are living fulfilling lives on their own. As they age, however, they will require more and more services to help them deal with day-to-day living. Some of the most successful businesses of the next few years will be ones that will provide cost-efficient services, both medical and non-medical, for the aging population of the United States. According to the U.S. census, between the years of 2000-2010, the population between the ages of 18-44 is decreasing 1%. The population between the ages of 45-54 is increasing 21%. However, the population of ages between 55-64 is increasing at 47%. People between the ages of 44-65 are the “New Customer Majority.” Their market is 45% larger than the 18-43 market and will be over 60% larger by 2010. According to David Wolfe and Robert Snyder in Ageless Marketing, “The New Customer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.” **************************************************** The senior Care Environment--- Long-term Care Demand and Our Aging Population The market for long-term care is rapidly increasing which will increase the demand for our services in nursing homes, hospitals and private duty assignments. According to the U.S. Census Bureau, the elderly population (persons 65 years old and over) increased eleven-fold between 1900 and 1994; the non-elderly increased only threefold. Under the Census Bureau's middle series projections, the number of persons 65 years old and over would more than double by the middle of this century to 80 million (up from 33 million in 1994). By the year 2030, about 1 in 5 Americans will be elderly. The oldest old is the fastest growing segment of the elderly population. The oldest old (persons 85 years old and over) are a small but rapidly growing group, comprising just over 1% of the American population in 1994. From 1960 to 1994, this group increased 274% to 3.5 million, compared with an increase of 100% for persons 65 years old and over, and an increase of 45% for the total population. Overall, the oldest old were projected to be the fastest growing part of the elderly population as we entered this century and beyond. By 2020, the U.S. population over the age of 65 is projected to grow to 55 million while the population over the age of 85 is projected to increase by four times to over 13 million. As age increases, the need for long-term care also increases. **************************************************** Shortage of Nurses--- There is an acute shortage in the United States of registered nurses. A recent study published by the American Hospital Association states that the average age of a nurse is 45 years old and that less than 10% of all nurses are under the age of 30. This coupled with the dynamics of an aging population and increased government requirements for staffing at hospitals and nursing homes have created a substantial demand for our services. We believe that competition for qualified personnel will continue to increase and that our benefits and methods of "sharing the success" with our employees will make us an attractive employer in the marketplace and allow us to be the most attractive answer when individuals are looking for employment. **************************************************** Why Would Nurses Become Contract Workers Instead of Full-time Employees?--- Many nurses are switching from demanding shift positions in traditional settings to contract staffing. For a comparable salary and benefits, an employee has more flexibility and control over their schedule, vacations and holidays and less risk. Some nurses enjoy doing a variety of jobs in which they can use many of their skills and others prefer to use one specialty, contract work allows these options. **************************************************** Professional Licensure and Corporate Practice--- Nurses and other healthcare professionals employed by us are required to be individually licensed or certified under applicable state law and we will check with the state to ensure each license is valid and has no disciplinary action against it. Our comprehensive compliance program will be designed to ensure that all employees possess all necessary licenses and certifications and comply with all applicable state laws.

Reason for selling:

Personal reasons. Retiring from industry. Contact us for the NDA for more details.

Support & Training:

Provided.

Contact Business Seller

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Business Listed By:

Blue Stone Business Group

Blue Stone Business Group