National Private Duty Association (NPDA) has discovered some good news for private pay home care companies during a slow economic period. A recent survey of these companies has shown that over 70 percent of businesses are projected to increase their revenues in 2009. As a reflection of this growth, 81 percent of the businesses surveyed are currently hiring caregivers to keep pace with client demand.
The volume of new hires, satisfied clients, and stronger CEOs are helping this country move forward and find success in tough times.
2 comments:
When purchasing a Private Duty Home Care Business Today what is the typical valuation? Purchasing at 2X Cash Flow or lower?
What should you look at to determine what is the true value?
The first generation of private duty companies are starting to be sold. I think it's a bit too early to determine a clear valuation number.
There are lots of factors that affect the value of the company. Much of this depends on the buyer. If the buyer is intending to be an owner/operator they can often purchase an existing company as inexpensively as starting their own. If the buyer is an investor, they will pay a premium if management staff remains in place at a profitable company. Finally, we see competitors and consolidators looking for small companies, even unprofitable ones, to absorb into their system. In this case they are purchasing the client base and employees rather than the brand.
As a seller, you may receive dramatically different offers from companies and individuals depending on their needs and your ability to deliver.
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