MergerPlace

In-Home Senior Care in Dallas Area

Texas (Dallas)


  • Asking Price: $370,000
  • Gross Income: $905,720
  • Cash Flow: $142,276
  • Real Estate: Not Disclosed
  • Inventory: Not Disclosed
  • FF&E: $20,000
  • Listing ID: #199232
  • Established: 2012
  • Employees: 3 FT/1 PT

Business Description

An internationally branded network considered the premier U.S. franchise for non-medical home care. This In-Home Senior Care business has 40-45 W-2 caregivers and is listed on Yelp as a "Top Ten" Home Care Business Texas. As a non-medical provider of In-Home care, its clients are private pay and there are no Medicare licenses or regulations. It received a 3.6 Star overall rating from over 800 employees on Indeed.com with top ratings in the culture & work/life balance categories. This business has high ratings on PEAQ (Providing Excellence by Advancing Quality) Surveys. The owner is involved in the local community and collaborates with other Home Care business owners. One of only two agencies in the Dallas/Ft. Worth area to receive the “2017 Caring Star Award” ratings and reviews tabulated by Caring.com, it noted that they have earned a 5-star consumer rating (the highest possible score) within the past year, while also having a high volume of positive reviews and meeting other qualifying criteria for this national honor. The advantage of owning this franchise is an increased awareness with National Brand Marketing producing an increase in both Caregiver and Client inquiries.


Business Details

Primary Business Category: Health Care - Nursing & Residential
Location: Texas
County: Dallas

Company Information

Year Established: 2012
Home Based: No
Franchise: Yes
Relocatable: No
Number of Employees: 3 FT/1 PT

Financial Information

Asking Price: $370,000
Gross Revenue: $905,720
Cash Flow: $142,276
FF&E: $20,000
Seller Financing Available: Yes

Property Information

Facilities:

Services are provided in each client's home. The administrative office is in an office building in Duncanville, Texas, which is approximately 1,316 square feet. The monthly rent is $1,590.17. 3-year lease which commenced January 15, 2016 and ends January 31, 2019. There is no option to renew, but there is a provision where the lease can be terminated early under certain conditions. Tenant shall have the right to terminate this lease within the second year of the lease term by the giving of a sixty day notice and the payment of a termination fee equal to 3 month’s rent. Tenant shall have the right to terminate this lease within the third year of the lease term by the giving of a sixty day notice and the payment of a termination fee equal to 2 month’s rent.

Growth & expansion opportunities:

There is tremendous upside in this territory. To begin with, there is a large number of 65+ seniors in this market. According to the corporate office, at last count there are 52,101 seniors (65+) in this territory. That’s a sizable number of seniors and it just continues to grow each year. There is less competition in this territory relative to other territories. Many of the competitors, not surprisingly, migrated to the high-income areas of the Dallas metro area. They continue to concentrate on areas such as Central Dallas, North Dallas, Colleyville/Southlake, Collin County, NE Tarrant County, etc. They have not spent much of their resources in SW Dallas County and also don’t have a lot of Caregivers to service this area, and that’s a big plus for this franchise. Demographics-wise, the leading edge of the baby boomers is just now entering the age where many of them will start to need caregiver services and over the next 5-20 years, there is going to be tidal wave of these boomers needing in-home care as they fight to age in place. Additionally, there has been very little marketing to RPN’s (“Referral Provider Network”) such as rehabilitation facilities, hospitals, Assisted Living Facilities, Independent Living Facilities, doctor’s offices, home health agencies, hospice companies, etc. The owner admits that marketing isn’t his strong suit, as he has mostly been an operations person. As a result, the owner has never done any marketing himself and the owner’s right-hand person does very little marketing. The owner has no doubt that a new owner who would put some time into building relationships with the RPN’s would see some significant growth result. The corporate office will give the new owner all the tools and resources to do so.

Competition:

Competition is "universal" and not from a specific competitor. Only one known competitor that still provides live-in care in the area. The most predominant competitors include Care Mountain, Fidelis Home Care, Right At Home, Visiting Angels and Custom Caregivers. There are institutional providers entering non-medical home care in many markets with continuing proliferation of start-ups. Residential care homes offer a lower price 24/7 solution for clients. The Affordable Care Act is not yet applicable today as they do not meet the 50 Full Time Employee threshold. The minimum wage in Texas is currently $7.25, but they pay an average hourly rate of $9.40. Texas is number one in the U.S. for employment of minimum wage workers. Minimum overtime is paid. Overtime is managed by coordinating caregivers' work schedules. Live-in care is not currently offered. Currently there is only one 24 hour client. In Texas, private companies can choose whether or not to carry workers' compensation insurance coverage. Vacation leave is not required under Texas law. Sick and/or parental leave is also not required, unless it would be a reasonable accommodation under disability or pregnancy-related laws. There is no White Collar Overtime Exemption Exposure.

Reason for selling:

Retirement.

Support & Training:

Will train for 4 weeks @ no cost. The new owner should have some supervisory skills but does not need previous in-home health care experience. The new owner must be approved by the corporate office, which can take up to 2 months. There is a $15,000 transfer fee (Seller & Buyer to negotiate who pays) to assume an existing franchise which represents the cost to train the new owner and one other individual. The new owner will need to apply for a license under their name with Texas’s Department of Aging and Disability Services (DADS).

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Business Listed By:

Dennis Corkran

Murphy Business Brokers