Franchised Non-Medical Home Care Agency, Idaho

$2.3M

Revenue

$785K

SDE

3.8x

Multiple

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Full Editorial Writeup

This is a franchised non-medical home care agency in Idaho that sends caregivers into seniors' and adults' homes to help with daily living: bathing, dressing, meal prep, transportation, companionship, and the like. It runs on roughly 30 to 40 field caregivers coordinated by an established administrative team, and it sits inside one of the most reliable demographic tailwinds in the country as the population ages and more families choose to age in place rather than move into facilities.

The numbers are healthy for the category. On about $2.3 million of 2025 revenue the business throws off $785,146 in cash flow, a roughly 34 percent margin that is strong for home care and reflects a franchise system with pricing discipline and lean overhead. Revenue is described as consistent and recurring, which fits the model: home care clients typically sign on for ongoing weekly hours rather than one-off visits.

The standout feature is that the primary owner already runs this remotely from outside the market, which tells you the management team and operating systems can carry the load without a founder in the chair every day. For a buyer, that means you are inheriting a semi-absentee platform rather than a job, though it also means you are paying for a team you will need to retain. The 3.79x cash flow multiple is in a fair range for a proven, absentee-capable home care franchise.

Why we like it

Earnings quality is genuinely strong here: $785,146 of cash flow on $2.3 million of revenue is a 34 percent margin, well above what most home care agencies produce. That margin plus a described history of consistent recurring revenue suggests real pricing discipline and franchise-level systems rather than a fragile one-off client mix.
The moat is the recurring, contract-style revenue and the franchise operating platform. Home care clients sign up for ongoing weekly hours and stay for months or years, so revenue does not have to be re-won every day, and the franchise brand brings referral relationships and compliance infrastructure that are hard to replicate from scratch.
Demographics do the heavy lifting on demand. An aging population and the strong preference to age at home rather than enter facilities means this service has a multi-decade tailwind, and non-medical home care is exactly the kind of essential service families keep paying for through a downturn.
The business is already run remotely by an absentee owner, which is the rare proof that the team and systems work without a founder present. A buyer with capital can layer this onto an existing platform or run it semi-passively, and low capital requirements mean cash flow converts efficiently.

How to improve it

Attack caregiver recruiting and retention first, because in home care your revenue ceiling is set by staffed hours, not by demand. Build a referral bonus program, standardize onboarding, and track turnover weekly so you can grow billable hours without turning away clients you already have.
Push billable hours per client and premium service tiers. Audit the current client base for underserved hours and introduce specialized offerings (dementia care, hospital-discharge transitions, 24-hour live-in) that command higher rates and deepen the recurring revenue per household.
Formalize referral pipelines with hospitals, discharge planners, senior living communities, and case managers in the market. These B2B referral sources are the lifeblood of home care intake, and a disciplined outreach cadence can lift new client starts within the first quarter.
Add or expand private-pay and long-term care insurance billing capabilities. Clarifying payer mix and chasing higher-margin private-pay clients while streamlining insurance reimbursement can meaningfully improve both revenue quality and collection speed.
Tighten scheduling and back-office technology to reduce administrative drag. Better shift-matching software and mileage/route optimization cut caregiver idle time and overtime, protecting that 34 percent margin as you scale hours.
Explore a small tuck-in acquisition or a second territory under the same franchise. With an absentee-capable team already proven, adding density in an adjacent market is a natural compounding play that spreads fixed admin cost across more revenue.

Diligence notes

Verify the recurring revenue claim by pulling client-level data: average length of stay, hours per week per client, churn rate, and concentration. If a handful of clients or one referral source drives most of the hours, the recurring narrative is weaker than it looks.
Scrutinize caregiver staffing stability. Confirm the 30 to 40 field caregiver count, turnover rate, wage rates versus local market, and whether workers are W-2 employees, because misclassification or a thin bench is a real risk in this labor-tight sector.
Confirm the absentee model actually holds. Interview the administrative team, map who owns scheduling, intake, billing, and compliance, and quantify exactly how many hours the current owner spends, so you know whether you are buying a platform or a hidden owner-operator role.
Review the franchise agreement in detail: remaining term, transfer fees and franchisor approval, royalty and marketing fees, territory rights, and renewal conditions. These terms directly affect the true net margin and your ability to expand.
Validate the 2025 revenue and $785,146 cash flow against tax returns and payroll records, and understand payer mix (private pay versus insurance versus any Medicaid waiver). Reimbursement rates and collection timing materially change the durability of that margin.
Check state licensing, background-check compliance, and any pending labor or regulatory issues. Home care is regulated at the state level and any gap in compliance or overtime exposure could carry over to a buyer.

Source

Originally listed on BusinessBroker.net. View original listing →