Opportunities
Counseling for Employees of Large Corporations w/Nationwide Clients
Sold
Specifications
No licensing is required to provide employee assistance program counseling & advisement, making this nationwide counseling company perfect for business consultants and coaches. Clients are located in 23 states with an average full-time staff of 150 persons. While there are currently 32 companies under contracts, many of them have multiple locations, and are in healthcare, long term care, social services and other industries.
The seller has 1 Therapist working just under full-time hours, and 2 local subcontracted Therapists. Having developed a partner network, the company has access to a large number of contacts nationwide to assist with clients in other states or with specific needs. To assist with the office, there is a part-time Office Manager on staff.
Services included organizational consultation and advisement, clinical assessment, and brief/solution-focused therapy, with coaching and counseling split 50/50. The seller is looking to transition further into her private practice, and has her employees handle most of the counseling and coaching.
This is a great business for an established EAP looking to add on, or for a counselor or coach wanting to branch out. Priced at $205,000, this is an ideal opportunity for an industry insider to acquire a highly reputable business and grow it.
Business Highlights
- Years in Business: 25+
- Location: Lincoln – relocatable
- Service Area: Corporate clients in 23 states
- Number of Clients: 32 companies with current contracts (many of these companies have multiple locations)
- Client Industries: Majority are in healthcare, long term care, social services, construction companies and school districts
- Services: Brief/solution-focused therapy for employees. Organizational consultation and advisement.
- Purpose: Benefit that companies provide for employee well-being
- Employees: 1 Therapist, 1 Office Manager; 2 local, subcontracted Therapists; many more therapists through a proprietary network
Financial Highlights
- List Price: $205,000
- Gross Sales:
- 2017 - $254,327
- 2016 - $257,630
- 2015 - $233,446
- Cash Flow:
- 2017 - $64,649
- 2016 - $73,975
- 2015 $49,480
- YOY Growth Trends: Steady growth YOY
- Profit Margin: 25%
Cash Flow Analysis
Description of Financial Statement | P&L Statement | Tax Return | Tax Return | Tax Return | Notes |
2017 | 2016 | 2015 | 2014 | ||
GROSS SALES | $254,327 | $257,630 | $233,446 | $207,371 | |
Net Income Shown on Financial Statement | $4,010 | $13,077 | $-20,330 | $17,450 | |
ADDBACKS | |||||
Compensation to Owner | $33,999 | $49,966 | $59,591 | $43,162 | |
11% Tax on total W2 Salaries | $6,057 | $5,496 | $6,555 | $4,748 | |
Interest | $168 | $0 | $38 | $0 | Non-onward going expense |
Meals & Entertainment | $92 | $2,232 | $135 | $126 | Personal expenses |
Owner's Draw | $8,977 | $0 | $0 | $0 | Non-onward going expense |
Cell Phone | $3,204 | $3,204 | $3,204 | $3,204 | $267/month for 3 personal lines |
Health Insurance | $7,831 | $0 | $287 | $7,892 | $590/month |
Dental Insurance | $311 | $0 | $0 | $0 | Personal expense for owner |
TOTAL ADDBACKS | $60,639 | $60,898 | $69,810 | $59,132 | |
Seller's Cash Flow = Total Addbacks + Net Income | $64,649 | $73,975 | $49,480 | $76,582 | |
Profit Margin | 25.42 % | 28.71 % | 21.20 % | 36.93 % |
- 25% Profit Margin in 2017
- Steady YOY sales over $200,000
Services & Programs
Services are split 50% coaching / 50% counseling
Employee Assistance Services
- Built on the assess, brief/solution-focused counseling & referral model
- This program refers less than 10%, which is uniquely low
Relationship/marriage concerns | Stress management | Substance use/abuse concerns |
Conflict resolution | Parenting/family concerns | Work/life balance |
Workplace performance and productivity | Health & wellness |
- 3 levels of referrals
- Self-referral
- Informal referral
- Formal/performance referral
- Counseling & Problem-Solving Solutions
- Short-term solution focused therapy
- 5 to 8 sessions
- Work related problem-solving
- In-person or on the phone
- Serious mental health consultation for employees and families
- Assess & direct to ensure the employee or family member is receiving the best care
- Grief, trauma, and other issues
- Legal/financial consultation and referral
- 30-minute consultation with networked attorneys and financial professionals
- Substance abuse assessment
- Help employees look at personal substance use and help create a plan for sustainable change
Organization Programs
- Employers are offered 3 programs to help manage and develop productivity and performance in the workplace:
- Supervisory Consultation
- Supervisor working with one employee on an issue or situation, with the program addressing the issues and strategizing for solutions
- Organizational Consultation
- Guidance for policies, procedures, programs and intervention strategies
- Customized Supervisory Training
- Assessment, Executive Coaching and Training
- Group in-services for learning development programs
- Team work group development
- Human resource policy review
- Risk management review
- Wellness consultation
- Substance abuse evaluations
- Crisis Management & Trauma Response
- Crisis response
- Critical Incident Stress Management
- Grief Counseling
Clients
- Average client has a staff of 150 FTE
- Clients are primarily across the following industries:
- Healthcare
- Long-term care
- Social services
- Construction
- School districts
- Clients pay for 1 year per employee and prepay to ensure confidentiality and to reduce the employees drawing from a company’s healthcare funds*
- 32 companies under contract with 95 locations
- Locations are counted by state, and not by individual locations within a state
- Some companies have several locations in more than one state
- Locations served in the following states:
Nebraska | Missouri | Arizona |
California | Florida | Georgia |
Illinois | Indiana | Kansas |
Louisiana | Maryland | Michigan |
Mississippi | New York | Ohio |
South Carolina | South Dakota | Tennessee |
Texas | Iowa | Oklahoma |
West Virginia | Arkansas |
o Standard
invoice for a company enrolling 64 employees for EAP and 10 hours of
consultation would be billed roughly $3,350 for a 1-year contract
*information regarding fees/rates is available upon the receipt of a signed Non-Disclosure Agreement.
Employee Information
- Therapists
- 1 PT Therapist (working ¾ FT)
- 2 local, subcontracted Therapists
- Company has developed a partner network of licensed counselors
- Opens up the company to nationwide clients with network counselors available to work
- 1 Office Manager/Receptionist
The seller splits time between working in and working on the business, leaving a majority of counseling and coaching to the Therapists.
A busy month for the seller is counseling or coaching 10 clients.
Growth Opportunities
- Add more contracts
- Through aggressive sales and marketing, a buyer could increase the client base locally and nationally
- While many of the clients are in health, education and construction, the company’s services lend themselves to multiple arenas
- Add more therapists/coaches
- More therapists/coaches allow the company to handle more clients
- A buyer working more actively with clients
- A buyer could become more active with clients if desired to increase margins
- Disaster relief
- A great area to explore for assistance after catastrophic events
- Add more schools
- EAP’s are useful tools for admin and teaching staff across all school levels
Valuation Details
The Firm Business Brokerage used a Cash Flow Valuation methodology to determine the Purchase Price of the business. The formula used is as follows:
Cash Flow x Multiplier = Price
Cash Flow is the sum of net income plus any owner perks and non-onward going expenses.
Multiplier is a prescribed number between 1 and 5 determined by a 100-point, 20-question rating system used to determine the business valuation. The average multiplier is 3.
The 2017 Cash Flow is $64,649, and the prescribed multiplier is 3.2.
With this information, the computation result as follows:
$64,649 x 3.2 = $206,876
The List Price for the business is $205,000.
Funding Example
Purchase Price: $205,000
12.5%Buyer Down Payment: $25,625
12.5%Seller Financing: $25,625
75%Bank Loan: $153,750
Seller Financing 5-year term at a rate of 4.50% equals a monthly loan payment of $478.
Bank Loan 7-year term at a rate of 5.25% equals a monthly loan payment of $2,191.
After business expenses and annual loan payments of $32,027, a buyer would retain a net operating income (profit) of $41,948. A 12.5% down payment of $25,625 results in a 163% return on investment in the first year.
Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.
Print, sign and send to:
210 N 78th St. 2nd FloorOmaha, NE 68114
Or fax to:
f 402.939.0857