Many do quite well starting anew in the business of care. Others prefer to purchase existing businesses which are often available when retirees decide to leave their entrepreneurship and move elsewhere. Transactions occur daily in adult day care, home health care, private duty home care and assisted living of various sizes. Some transactions are all inclusive of the real estate used while others include a lease arrangement for the new owner.
Sale amounts vary widely from 1 1/2 times the annual revenue to more complicated formulas that consider auxiliary revenue streams, strength of marketing campaigns, regulatory track record and more. Often I am asked to send in a team to audit the track record of the business to determine if it still has a good name in the community and to verify the stability of its income sources.
Step I might be the most crucial. That is the step of finding a care business for sale that may currently not be advertised as being for sale. This might be the one with the most to offer. Ideally someone looking for a care business invests in the required outreach which results in the development of a comprehensive report that provides the following for the purchaser:
- Name of Business
- Review of Obligations
- Current Marketing Strategy
- Regulatory History
- Current Gross and Net Revenues
- Details Pending Regulatory Investigations
- Sale Price Requested
- Opinion on Actual Value Based on Specific Business and Market Conditions
Such a report can go a long way to provide a look at what the market really has to offer. The report entitled the: Buy/Sell Survey and Reporting Binder is a blueprint for taking the time to make educated, informed decisions. It also saves tons of legwork and allows a potential buyer to focus on more than one home with information from or on 50 or more providers.
Speaking of education a web chat is being held on Thursday – December 19, 2014 at 7:00 p.m. to discuss strategies for success in urban assisted living. Click Here to Log-In or keep the link handy for the date of the event. If you forget or need it emailed to you send a request to: email@example.com.
Details are available from our offices. The value of knowledge is no secret. Let’s just be sure we seek it before making purchase decisions.
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