Medical and Wheelchair Transportation for Non-Emergency Clients
Using a well-maintained fleet of over 60 vehicles to transport individuals who experience ambulatory challenges or who utilize adaptive equipment such as a wheelchair or stretcher chairs. This business has a wealth of relationships with governmental entities and medical providers as a result of over 28 years of successful transportation experience.
The business is running at efficiently and has significant control of the market in a four-county area of South Florida. A new owner can expand the business increasing bids and making contracts with more area medical establishments.
- Years in Business: 29
- Location and Service Area: South Florida
- Number of Clients/Capacity/Demographics:
- Services: Paratransit, and Non-Emergency Medical Transportation Firm. Transport of Ambulatory, Wheelchair, and Stretcher passengers.
- Lease: $3,000/mo. for 2,500 square foot office and 1,500 sq. ft. attached maintenance bays
- Reason for Selling: Retirement
- Employees: 40 FT including 12 office staff (dispatch and management) and the rest drivers
- Seller Training Period: 6 months – 1 year
- Growth Opportunities: Hire Marketing/Salesperson to create more relationships with government agencies and medical providers for bids and contracts
- Current Owner’s Responsibilities: Financial/contract maintenance
- List Price: $1,980,000
- Gross Sales
- 2018: $5,022,976
- 2017: $5,134,413
- 2016: $5,036,446
- Owner Profit/Cash Flow
- 2018: $473,398
- Profit Margin: 9%
- Assets Included in Purchase* $3,300,000
- Equipment: Intelligent dispatch and logistics equipment and software
- Vehicles: Over 60 specialized vans with lifts and medical transportation equipment
- Intangible Assets: Contracts with major hospitals, B2B and B2G relationships
*amounts may vary
Cash Flow Analysis
|Description of Financial Statement||P&L Statement|
Jan. - Dec.
|Tax Return||Tax Return||Notes|
|Net Income Shown on Financial Statement||$130,516||$108,171||$218,996|
|Compensation to Owner||$52,000||$51,800||$43,700||CEO/owner - new owner would take on position|
|Other Owners' Salaries||$128,850||$129,800||$79,700||2 other officers/owners - 1 does PT billing, 1 does vehicle repair/maintenance oversight (can be absorbed by current staff)|
|Other Unrelated Salaries||$25,950||$43,400||$37,660||No longer works for company, but receives salary|
|11% Tax On Salaries||$19,894||$19,976||$13,574|
|Contributions/Donations||$18,056||$0||$0||Non-onward going expense|
|Health Insurance||$41,772||$41,772||$41,772||Personal expense|
|Life & Disability Insurance||$6,981||$6,133||$6,346||Personal expense|
|Cell Phone||$3,600||$3,600||$3,600||$300/month for 3 personal lines|
|Auto Expense||$7,200||$7,200||$7,200||Personal expense|
|Seller's Cash Flow = Total Addbacks + Net Income||$473,398||$561,613||$570,194|
|Profit Margin||9.42 %||10.94 %||11.32 %|
- Logistical Transportation Brokers $200,000-230,000 revenue per month
- Hospital Systems $56,000 revenue per month
- Health Systems $30,000 revenue per month
- Emergency Medical Transportation services $24,000 – $40,000 revenue per month
Specific information regarding clients is available upon the receipt of a signed Non-Disclosure Agreement.
- Ambulatory transport
- Wheelchair transport with hydraulic lifts and converted vans
- Stretcher transport (non-emergency) with specialized vans
- 40 FT
- 12 office staff (dispatch and management)
- 28 drivers
- A new owner can expand the business increasing bids and making contracts with more area medical establishments.
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 Prescribed Multiple = Fair Market Value
Cash flow is the sum of business net income plus any owner perks and any non-onward going expenses.
A multiple is prescribed by a 20 question, 100-point parameter ranking system that is used to analyze the current business health. Each question is based on a scale from 1 to 5: 1 being low, 2 below average, 3 average, 4 above average, 5 high. The average of the responses sum is the business’ prescribed multiple.
For this business, a 2018 cash flow was used with a prescribed multiple is 4.2. With this information, the computation is as follows:
$473,398 x 4.2 = $1,988,271
The fair market value found above positions the business list price at $1,980,000
Purchase Price: $1,980,000
15%Buyer Down Payment: $297,000
30%Seller Financing: $594,000
45%Bank Loan: $1,089,000
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $ $11,074.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $14,311.
After business expenses and loan payments, a buyer with a 15% down payment of $297,000 would retain a profit of $168,778, which results in a 56% return on investment in the first year.
A lender is required to have a minimum 1.5 coverage ratio for any business loans extended. At a proposed purchase price of $1,980,000 with the terms listed above, the coverage ratio is 1.55.
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.
Offer Price: $
% Buyer Cash Down at Closing: $
% Seller Carry Back via Promissory Note: $
year term at a rate of %
% of Purchase Price secured by Buyer and Seller
Total Bank Loan Need: $
% of Purchase Price
Desired Loan Type:
Desired Bank Terms: year term at a rate of %
Total Business Assets, Inventory, and A/R: $
Total Undercollateralized Loan: $
|Monthly Payment to Bank:||$|
|Yearly Payment to Bank:||$|
|Monthly Payment to Seller:||$|
|Yearly Payment to Seller:||$|
|Total Monthly Debt Service:||$|
|Total Yearly Debt Service:||$|
Fixed Charge Coverage Ratio
The bank will require a minimum ratio of 1.5 to be lendable.
2018 Cash Flow
|Annual Debt Service:||$|
Buyer's Net Operating Income (NOI)
The amount of money the Buyer will retain as profit.
2018 Cash Flow
|Annual Debt Service:||-$|
Buyer's Return on Investment (ROI)
The rate of return on the Buyer's down payment.
|Document Title / Description|
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