Beginner Tips For Valuing Home Health Business Opportunities
With the senior population growing faster than ever, now’s the time to start a home health business. Today’s post overviews some beginner tips for valuing home health business opportunities.
How To Evaluate Home Health Business Opportunities
More often than not, home health business opportunities aren’t bought and sold on the open market. That means prospective buyers cannot study transaction filings to discern fair market pricing and other objective data points, as is the case with other investments.
But there’s plenty of other things we can look at to evaluate home health business opportunities. New York firm Franchise Valuations Limited recommends starting with the following three factors:
Additionally, we must consider the brand’s intangible assets and intellectual properties, because according to Schaeffer & Levitt (2012), “franchise operating systems, goodwill, and know-how are generally the most valuable assets owned” (p. 11). This is especially true in the senior care industry, where “hard assets” (e.g. care equipment) play only a small part in the delivery of high-quality service. It’s the intangibles–your unique way of doing things–that separates one business from another.
Let’s dig into a few of these valuation points to assess our home health business opportunities.
Valuing The Senior Home Health Care Market
If you’ve spent any time researching home health business opportunities, you know the demand for in-home care is greater than ever before. Approximately 1 in 5 Americans will be over the age of 65 by 2030, and the majority of those individuals will be relying on qualified in-home care services to meet their aging goals. There has literally never been more seniors, more demand, or greater prospects for the future of the home care industry than we’re currently seeing. In other words, the market checks out!
Valuing The Income Of Home Health Care Opportunities
The best way to evaluate the income of home health care opportunities is to review Item 19 of the Franchise Disclosure Document. Item 19 is the portion of the document that describes “Earnings Claims” and “Financial Performance Representations.”
Give us a call or book a consultation online to get access to the Franchise Disclosure Document and find out what you can expect to earn.
Valuing The Cost Of Home Health Care Opportunities
Executive Care estimates your initial investment will range between $99,650 and $161,900 which includes your franchise fee, recommended operating capital, and other startup costs. The investment cost is based on varying factors. We highly recommend having an additional $45,000 to $68,000 in working capital which is included in the initial investment range.
Valuing Intangible Assets
Don’t forget to review the brand’s intangible assets. This amounts to your brand’s value propositions–what are your main selling points? What separates you from the competition?
Here’s a few examples from the Executive Care model:
- Experience–Executive Care has been a leading in-home care provider since 2004
- Full-service care company–We offer multiple forms of support to satisfy any care needs in any environment
- Custom care plans–Every care plan is 100% tailored to the individual
- Proven start-up process–Our franchise owners get started faster and hit the ground running, even without prior training or experience.
- Protected territory system–Get exclusive franchise sales rights to a huge local territory.
Take A Closer Look At Executive Care’s Home Health Business Opportunities
Call 1 (855) 393-2372 or visit the Executive Care website to book a free consultation.