Description of the business for sale
This information describes some of the the highlights of the deal Home Health care investment deal:
The investor would play two roles in this deal: 1) as an investor and 2) as the private banker.
The total investment in cash would be $500,000.00, which is the purchase price of the business. The buyers are providing the working capital cash.
The buyers would run the operations of the company.
Their activities would be managed by a "receiver" that would act on the investor's behalf and provide weekly updates. (The company would pay the receiver an annual salary while the investor is involved).
The "loan" would be repaid in three years from future receivables of the company. The interest rate on the loan would be 10% made in equal monthly payments. Monthly payments would be $16,133.00 (Current monthly Medicare payments average $200,000).
The investor would also receive a return on the investor equity portion of the business, which would be 40% of the monthly proceeds, (net of normal operating expenses including debt service) as certified by the "receiver".
The investor would hold all of the stock of the company until the loan is repaid.
About the company:
The business has been in operation for almost two years operating as a PPS Home Health Care provider
Certified by Medicare
Revenues last year where $3,100,000.00
60% of patient billings are paid within 12 days after receipt by Medicare, so there typically are no receivables