Cash flow over $230,000 non-franchised home health care business servicing 8 counties
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Cash flow over $230,000 non-franchised home health care business servicing 8 counties! Accredited by the Joint Commission for excellent care by exceeding State standards. Valuing and acting upon “little things” to give back and go above and beyond expectations have produced growth and profitability for the seller. This exceptional personal care towards patients and staff distinguish this business from its competition.
An online presence is established with an effective website along with a Yellowpage ad and phonebook ad. Regular Health fairs at facilities along with word of mouth referrals provide the most new clients. Marketing is an opportunity for growth for a new owner, especially by building relationships with referral sources such as social workers, nurses, assisted living facilities and Hospitals which have systems that release lists of discharged patients. Another growth opportunity would be to gain clients with needs for Therapy services, which are more profitable and are currently being outsourced. Medicaid patients are the primary focus due to patient plans being preapproved for seamless billing and collection.
For compliance within this industry an Administrator and Director of Nursing are required, these positions can be filled by Registered Nurse’s or 2 or more years of administration experience. A new owner does not need to have a medical background but would have increased profitability by fulfilling both roles of Administrator & Director of Nursing. The seller values the transition of ownership period to not disrupt patients, resources and staff. The seller did not want to grow big but has positioned this business for a new owner to be capable of even more growth and significant cash flow.
A 10% down payment of $81,500 will produce a net operating income of $112,249 and a 137% return on a new owner’s investment in year 1!

Financial Overview
List Price: $815,000
Gross Sales
2014: $1,202,535
2013: $1,379,609
Owner Profit/Cash Flow
2014: $244,134
2013: $272,193
Profit Margin: 20%
Multiple: 3.34 *Multiples range from 1-5, with the average being 3
Valuation: [2014] Cash Flow x Multiple = Price
$244,134 x 3.33 = $815,000

Assets Included in Purchase: $5,500
Equipment: $5,500 office furniture, computer and copier
Intangible Assets: Website
*amounts may vary
Business Information
Year Established: 2008
Location and Service Area: 8 County Region in Western Nebraska and Eastern Iowa: Douglas, Sarpy, Sanders, Lancaster, Washington, Dodge, Cass and Pottawattamie
Services: Skilled Nursing, Home Health Aide, Wound Care Management, Ostomy & Continence Care, Companionship, Physical Therapy, Occupational Therapy & Speech Therapy
Patients: Majority of clients are elderly. Active census of 60 regular patients, 25 new patients in 2015. Most services being provided are skilled nursing and bathing for Medicaid patients
Office: Open Monday through Friday but does not have walk in patients, rent is $1,500 per month
Employees: Office is staffed with 1 full time RN and 1 Secretary. Billing and Payroll are outsourced. Team of 22 part time fieldworkers consist of Caregivers, CNA’s, 5 RN’s and 2 LPN’s. Specialized Therapy services are subcontracted
Seller Training Period: Willing to spend 90 days for transition of ownership or as needed by new owner
Current Owner’s Responsibilities: Administrator and Director of Nursing for compliance as well as management and oversight of day to day operations. New owner does not need to have medical background and can hire two Nurses to be the Administrator and Director of Nursing.

Funding Example
Purchase Price: $815,000
10% Buyer Down Payment: $81,500
15% Seller Financing: $122,250
75% Bank Loan: $611,250
Net Operating Income (Profit) $112,249
137% Return on Down Payment in Year 1

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