Senior Home Care Business for Sale in Harlingen
Senior care assistance services are provided in the home or assisted living facility and may be scheduled up to 24/7/365 through its network of experienced and compassionate caregivers.
Type of business: senior home care, elderly care, senior care, home care
This is a successful 22-year business built on repeat referrals and client recommendations. It offers a personalized caregiver service in the comfort of the client's residence, outside of the traditional assisted living facility model and can be expanded into neighboring RGV areas with minimal marketing.
Senior care is in an essential, recession resistant industry. During the Great Recession (2007-2009) Sales increased by 56% in 2008, then dropped by only 12% in 2009, and another 9% in 2010, then recovered quickly soon thereafter.
Strictly private pay business with high quality clients demonstrated with consistently high accounts receivable turnover. Throughout 2018-2019, receivables were converted to cash on average 20x resulting in an average collection time of just 18 days.
A very simple, asset-light business structure with little to no overhead and a network of 45 loyal and experienced independent contractors with very little turnover.
High compound annual growth rate of sales with low fixed expenses.
Key financial facts and forecast
The company's sales have steadily grown over the last 10 years and even more so in the last 5 years with compound annual growth rate (CAGR) of 25% (2016 sales of $740K vs 2020 sales of $922K). In the same period, net income has shown a CAGR of 30%.
The 5-year average gross and net profits margins are very attractive at 22% and 15%, respectively. The independent contractor model keeps the company's operating expenses low and allows more flexibility with caregivers schedules.
With no plans for additional marketing, sales growth is forecast to remain steady at around 3~5% annually over the next 5 years and begin to increase closer to 10% as the average "baby boomer" ages. According to HHS, every day 10,000 "boomers" turn 65 and the RGV area currently exceeds the national average with 1 in 5 individuals over age 60.
As of March 31, 2021, the company carries no debt and a current ratio of 22 (current assets / current liabilities).
The company has steadily grown since it's opening with little to no marketing and essentially no web presence. We currently serve clients in the Harlingen area and lower Rio Grande Valley, but have room to expand to nearby areas such as Raymondville and the upper Rio Grande Valley.
Pictured above: Profit Forecast
Pictured above: Business Value graphed against Cost of Equity
Reason for selling
Founder and current sole owner has successfully operated the business for 21 years and has decided to retire and spend more time with family.
Required buyer qualifications
Prospective buyer must be able to demonstrate capital to make a cash purchase at closing of sale or proof of secured 3rd party small business financing. A buyer with previous home-based senior or health care or similar experience is preferred.
Download Sales Memorandum
Category: Business | Senior home care
Located in Harlingen, Texas, US