Minneapolis 245D HCBS Provider, MN DHS-Licensed Home & Community-Based Services

$593K

SDE

2.4x

Multiple

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Full Editorial Writeup

MN DHS-Licensed 245D HCBS provider available. Located in the metro area, company has experience year over year growth and has successful 2026 revalidation. Strong staff in place with 8 FT and 13 PT employees. The company has a modern digital infrastructure and standardized systems. Services include ICS, Respite Care, IHS, ICLS and more. Buyer must be a current owner in the industry and qualified via SBA.

Why we like it

Earnings quality is anchored to $593K in cash flow at a stated 2.36x multiple, which is reasonable to cheap for a licensed healthcare service. Revenue flows primarily from Minnesota Medicaid waiver programs, so collections are predictable and largely government-backed rather than dependent on consumer discretionary spend.
The moat is regulatory. A 245D HCBS license plus a completed 2026 revalidation is a real barrier that new entrants cannot buy off the shelf, and the buyer restriction (must be an existing industry owner) confirms the license is the asset. This creates a defensible position that keeps out casual competition.
Demand tailwinds are strong and demographic. Aging populations and a persistent policy preference for community-based care over institutionalization mean HCBS volume grows structurally, and the seller cites year-over-year growth to back that up. This is care people need regardless of the economic cycle.
The operator advantage is a working team already in place, 8 full-time and 13 part-time, on standardized systems and modern digital infrastructure. For a qualified industry buyer, this is a plug-in bolt-on that can absorb existing overhead and back-office rather than a build-from-scratch project.

How to improve it

Map every revenue line to its specific Minnesota waiver and reimbursement rate, then model the impact of rate updates on cash flow. Understanding the state fee schedule lets you forecast margin and identify which service lines (ICS, Respite, IHS, ICLS) carry the best contribution per staff hour to prioritize growth.
Attack the caregiver labor pipeline in the first 90 days. HCBS margins live and die on staffing, so build a repeatable recruiting and retention engine (referral bonuses, faster onboarding, scheduling optimization) to convert the 13 part-time roles into more billable capacity without adding overhead.
Tighten billing and documentation to reduce claim denials and shorten the DHS reimbursement cycle. Even a modest reduction in rejected claims and days-in-AR drops straight to cash flow, and clean documentation also de-risks the next revalidation and any audit.
Grow referral density with county case managers, hospitals, and discharge planners in the metro. These are the gatekeepers that route clients into HCBS services, and a structured relationship program can raise intake volume without meaningful marketing spend.
Add adjacent 245D-eligible service lines the license already permits but the business may under-serve. Expanding into higher-reimbursement or higher-utilization services lets you monetize the same license, back office, and staff base for incremental margin.
Consolidate scheduling, EVV compliance, and payroll onto one integrated platform if not already done. Reducing administrative labor per client visit improves margin and makes the business easier to scale or bolt into a larger portfolio.

Diligence notes

Get audited or reviewed financials and confirm the $593K cash flow figure, including how much is true SDE versus owner add-backs. With revenue undisclosed, you need to reconstruct the revenue base and margin from Medicaid billing records before trusting the 2.36x multiple.
Scrutinize the 245D license transferability and the 2026 revalidation. Confirm exactly what transfers on change of ownership, whether DHS requires re-approval of the new owner, and any conditions or corrective actions attached to the current license.
Analyze reimbursement rate risk and payer concentration. Determine how much revenue depends on specific waiver programs, whether any rate cuts or program changes are pending in Minnesota, and how sensitive cash flow is to a rate reduction.
Review staffing stability, wages, turnover, and any pending labor liabilities. With only 8 full-time employees, the departure of a few key caregivers or a supervisor could disrupt service delivery and billing, so map key-person risk and any 1099-versus-W2 classification exposure.
Verify compliance history: prior DHS audits, incident reports, billing clawbacks, and any regulatory citations. In HCBS, past documentation gaps can trigger retroactive recoupment that directly hits the buyer, so confirm clean audit trails before close.

Source

Originally listed on BusinessBroker.net. View original listing →