Successful Franchised Home Care Provider
Our client’s business is a well established care provider, based in pleasant offices in the Midlands and operating as a member of a prestigious franchise. The vendors, who purchased the franchise in 2018, wish to retire.
The franchisor ethos is to provide the highest quality in care at home. This business takes on mostly private clients and frequently has to turn work away. There are approximately 50 clients most of whom have between 1 and 4 visits per day. In addition, there are 2 clients with more complex care needs, requiring continuous care.
The vendors are a man and wife team and both work part time in the business. She is the Registered Manager for the company but shares this role with 2 other members of staff. He is the MD looking after the commercial aspects of the business.
In total, there are 29 staff including 24 carers. It has suited the vendors to ‘deliver’ 450 to 500 hours per week but there is certainly demand for more hours if a new owner wishes to expand the business. The quality of the care staff is essential to delivering high quality care and the vendors have created a motivated team. Staff pay and conditions are kept competitive and accordingly, pricing is also towards the top end.
In the current year, the forecast is for sales of £625k generating an Adjusted EBITDA of c £77k. In 2022/23 sales are expected to increase to £687k with an Adjusted EBITDA of c £93k. We believe their forecasts are conservative.
The balance sheet is, as would be expected, relatively low in asset value terms. The property is leasehold. The balance sheet will be positive and debt free at completion.
The Guide Price for 100% of the shares of is £295k. The vendors will provide handover support on terms to be negotiated. The new owner will need to be approved by Franchisor and will also be required to attend a training course.
Contact: Richard Anderson or Peter Wilson
Info@anderson-shaw.co.uk 02476 100476
Anderson Shaw Reference - ASCFL/HCP
Guide Price: £295k for 100% of the shares