Searcher Wanted for $2.6M EBITDA In-Home Nursing Business

This Week in ETA:

• Searchers: We are looking for a searcher to buy and operate “Project Nurse,” an in-home nursing company serving ultra-high net worth clients. There is a lot to like about this business: 100% cash pay, 20+ year history, never had a website, and has excellent nurse team retention. $2.6M TTM EBITDA, Quality of Earnings is complete. The seller is willing to stay on for 1 year of transition. $9M purchase price. Buyer must be willing to relocate to Florida and invest $250k+ in the deal, investors (including us) are lined up for the rest. Healthcare experience a major plus. Hardly any SG&A in place, searcher will be very hands-on operationally. We have secured non-SBA debt that does not require a personal guarantee. We are actively interviewing candidates now. Interested? Fill out this form for more information. 

• Investors: This recent list of the “only” questions that matter for determining deal success misses several areas we index heavily on. Here are a few I always start with — what would you add? 1) Customer concentration: How exposed is revenue to a handful of accounts? 2) Customer durability: When large customers churn, how quickly (and reliably) have they been replaced? 3) Competitive landscape: Who else serves this market, and what advantages do they hold locally or nationally? 4) Demand volatility: How much does volume swing seasonally or year to year? 5) Seller motivation & transition: Why are they exiting, and what support will they actually provide post-close? I’ll share more another time about the many questions we ask when we’re vetting the buyer, too.

Plus:

• Be upfront with your asks and don’t want until the eleventh hour. This stat that only 1/3rd of LOIs make it to closing is a frustrating one - but can be avoided by getting your negotiation done before you’re nearing the signing of the purchase agreement. Bring on good counsel early on to help you make sure you’re ready when it’s time to sign.

• Beware white lies in a transaction. You’re making one of the biggest decisions of your life in buying a business; you must be able to trust the seller on the other side of the table.

Question:

Hit reply and tell us - What questions are most valuable in determining deal quality and success?