Acquisition Opportunity. Inland Northwest Provider- Occupational Therapy

Transcription

1 Acquisition Opportunity Inland Northwest Provider- Occupational Therapy 2018 For more information, please contact: Scott Martin THIS SUMMARY DOES NOT CONSTITUTE AN OFFERING TO SELL OR A SOLICITATION OF AN OFFER TO BUY ANY SECURITY

2 Executive Summary Purpose Black Commercial, Inc. ( Black Commercial ) has prepared this Acquisition Opportunity to assist interested parties in determining their interest in pursuing a potential acquisition of the Company. This Acquisition Opportunity is in no way an offering to buy or sell any securities associated with or pertaining to the Company. Inquiries and Next Steps Black Commercial is acting as the Company s exclusive advisor, and its fees are paid entirely by the seller. Accordingly, please note that all inquiries and follow-up must be coordinated through Black Commercial and its representatives. All parties who are interested in pursuing this transaction should contact Black Commercial at the contact information provided on the cover. Upon your request, we will provide a Non-Disclosure Agreement to you. Once the signed agreement has been received by Black Commercial, we will be able to disclose the name of the Company and provide you with a full memorandum. The Company The company provides therapy for individuals who have conditions that are mentally, physically, developmentally, or emotionally disabling by helping them recover or maintain daily living, work, or social skills. Therapists working for the Company are employed to help with the rehabilitation of the full body to enhance coordination, balance, modality, and functional capacity. The company is an approved provider for most of the major insurance companies, L&I, Medicare and others. Each of the therapy staff have specialized training for various methods of therapy to meet the individual needs of the patients. Page 1

3 Executive Summary Facility The Company operates from its leased location in northern Idaho, and serves clients within a 100 mile radius. The facilities and land are not included in the transaction, and new lease agreements will be negotiated. Financial Profile The Company s 2017 revenues were $548,852, netting adjusted Earnings Before Interest Taxes and Depreciation (EBITDA) of $137,319 Revenue has increased since 2013, and cash flow has increased annually with an average growth rate of percent over the five-year period. Management expects a 3.0 percent increase in revenues in What It Does The Company is an S corporation established in 2009, with one continuous owner. The Company provides patient therapy and stores therapy specific equipment in their current leased facility. Markets The Company receives patient referrals from local hospitals, schools and other health and therapy related companies. The Company is one of many providers in the inland northwest; however, differentiates from others in their commitment to learn and grow with the individual patient needs. The Company is well established and respected in the community and maintains good standing with clients and referring parties. No formal marketing campaign has been used in the past, although the Company has used word of mouth, community activities, professional events and fundraisers to promote their practice. The Company uses community relationships and past referral sources to spread the word of their ongoing efforts with individuals in need. The Company has the potential to expand revenues beyond its current customers with increased management and marketing efforts. Page 2

4 Executive Summary Organization and Personnel The Company is owned by a President/CEO. The President manages client relationships, finances, employees and general oversight. In addition to the President, the Company employs 1 part time therapist, 2 full time therapists and a part-time administrative assistant. The Owner will consider staying on during the transition of the business for up to one year and an agreed upon compensation in order to help establish a healthy transition. Strengths Competent staff Strong referral sources Great Working environment for Employees Challenges The location makes it difficult to find great OT s (Resort Community) A new Therapist will need to be hired with transaction to replace current owner. Reason for Sale After several years of service and devotion, the owner wishes to divest the Company with plans to pursue other non related interests. Next Steps If you are interested in discussing this opportunity further, please call: Scott Martin at or smartin@naiblack.com We will provide you with an Investigation and Non-Disclosure Agreement for your review and signature. Once received, we will then provide you with a complete narrative, document support and financial statements. Page 3

5 Schedule 1 Normalized Historical and Pro Forma Income Statement As of December 31st Estimated Company Sales $292,190 $325,740 $362,026 $425,017 $548,852 $604,000 % Growth N/A 11.48% 11.14% 17.40% 29.14% 10.05% Compound Annual Growth Rate 17.07% Adjusted EBITDA 81, ,071 77, , , ,117 % of Sales 27.77% 32.87% 21.34% 30.70% 25.02% 25.02% Page 4

6 Schedule 2 Balance Sheet (at estimated Fair Market Value) As of December 31st Accounts Receivable $98,540 Current Liabilities $12,245 Net Fixed Assets 11,322 Non-Current Liabilities 0 Other Assets 0 Equity 97,617 Total Assets $109,862 Total Liabilities and Equity $109,862 Page 5