Batteries Plus is a franchise that specializes in selling batteries, light bulbs, and related products and services. Like any franchise […]
HIGHLIGHTS:
HIGHLY SOUGHT AFTER BUSINESS MODEL - THIS IS A SUCCESSFUL IN-HOME SENIOR CARE Franchise (resale). This company has had a nice consistent sales and earnings history which is exactly what you should be looking for in a long-term investment of your time and resources. If you dive into this one a bit deeper you’ll see there is a serious opportunity to change the earnings structure on this company to do considerably better as we see it as an “under-performing” location by several % points. As we’re specialist in this industry we can likely help show you where the trouble spots are and within a few months you could likely change the earnings structure from $309,708 (the weighted average) to something closer to $384,000 per year. Once you review this project with us on the phone, we’ll supply you with our analysis in the form of a “Thought Experiment”. You can take these thoughts to your financial advisor and see how this might play out. This could also lead to a sale price in just a couple of years where you might see this company appraised for $1,200,000.
THE COMPANY:
Many active clients and a great roster of high-quality caregivers, as well as trained/seasoned staff. The business focuses on sending caregivers to a client’s personal home/residence to help them with daily life activities, such as light cleaning, food preparation, grocery shopping, walking with them and just basic companionship. The idea is to keep the individual in their own home rather than having to go into an Assisted Living Facility.
Finally, this particular location has an INCREDIBLE reputation in the community for providing this high quality non-medical in-home care and we think when you dive into this further, you’ll agree with that assessment.
THE APPRAISAL:
THE OWNER HAD A WALL STREET LEVEL APPRAISAL completed on the business. Wells Fargo, US 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.
POSSIBLE DEAL STRUCTURE AND RETURN ON YOUR INVESTMENT(ROI):
• Total Purchase Price:$860,000 [Appraised price, not an asking price]
• Down payment:$170,000
• Current SDE (cash flow of the business)$291,840 (2021)
• Amount financed:$690,000
• Debt service per year (annual note payment):$100,459(10 year at 8.00% approx)
• SDE less debt service:$191,381
• Assume new owner wages a year:$100,000
• Remaining SDE (cash flow) after owner wages and paying annual debt service:$91,381 So even after paying your debt service each year and taking out $100,000 in a wage you should still have $91,381 to do with as you wish, pay down debt early, take it out in additional wages or go to Vegas!
• 54% ....Annual return of investment on your injected capital/down payment each year. A great year in the stock market would be 15% to 20% and the average is about 7%. The assumption for this model, is that you actually work in the business similar to the way the current owner does now. Clearly in the stock market you would not be working in the company you held stock in.
• This scenario does not include working capital. Likely to be secured with a bank as part of your loan package, if qualified.
• Important:Do not take our word for it on the investment information, call and meet with your accountant and make sure they agree 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 advisor's opinion and are comfortable with the seller's presented numbers.
SALES/SDE HISTORY:
2019: $1,873,650 / $253,647
2020: $1,747,241 / $290,190
2021: $1,855,980 / $291,840
2022 (projections as of June): $1,674,722 / $327,576
*SDE: $309,708* 2 year weighted average
Gross Revenue and Cash Flow stated by seller. Buyer must verify/confirm all data/information with seller and their own advisors.
CONTACT US TODAY For the short online Non-Disclosure Agreement.
The seller has elected to keep the franchise confidential pending an executed non-disclosure agreement.
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