Non-Emergency Medical Transportation
Award winning services in a growing market! This business has established itself in the rapidly expanding South Florida market in the field of paratransit. There are over 40 employees in this thriving operation, including 12 office staff (dispatch and management). There are over $3M in assets included in the purchase of this great opportunity as well!
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: 28
- 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: Focus on other business
- Employees: 40 FT including 12 office staff (dispatch and management) and the rest drivers
- Seller Training Period: 6 months or negotiable
- 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: $2,010,000
- 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 4.25. With this information, the computation is as follows:
$473,398 x 4.25 = $2,011,942
The fair market value found above positions the business list price at $2,010,000
Purchase Price: $2,010,000
15% Buyer Down Payment: $301,500
30% Seller Financing: $603,000
45% Bank Loan: $1,105,500
Seller financing 5-year term at a rate of 4.50% equals a monthly loan payment of $ $11,242.
Bank loan 8-year term at a rate of 6% equals a monthly loan payment of $14,528.
After business expenses and loan payments, a buyer with a 15% down payment of $301,500 would retain a profit of $164,163, which results in a 54% 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 $2,010,000 with the terms listed above, the coverage ratio is 1.53.
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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