Non-Medical Home Care Agency, 13-Year Woburn MA Franchise Territory

$2.6M

Revenue

$923K

SDE

3.5x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access Access Unlimited Deals

Already a member? Sign in

Full Editorial Writeup

This is a non-medical home care agency operating in Woburn, Massachusetts (Middlesex County) since 2013 under one of the nation's leading home care franchise brands. The business delivers companionship, personal care, and certified dementia and Alzheimer's care to seniors in private homes and senior living communities, with an optional licensed private duty nursing line that could add a second revenue stream. It runs a lean footprint: a 900 square foot office at just $993 per month, 56 employees (36 full-time, 20 part-time), and essentially no capital tied up in equipment.

The numbers are the headline here. On $2.6M of revenue the agency throws off $923,100 in cash flow, roughly a 35% SDE margin, which is well above the single-digit to low-double-digit operating margins typical of the home care sector. That margin profile, combined with franchise-backed systems, training, and tools, makes this an unusually clean cash producer for a people-heavy services business. The asking price of $3.25M implies a 3.52x multiple with seller financing on the table.

The demand story is the aging-in-place megatrend. Middlesex County has a large and growing senior population, Baby Boomers overwhelmingly prefer to age at home, and the service is one families prioritize paying for even when budgets tighten. The seller is retiring and has grown revenue year over year, leaving a buyer a stable, profitable territory with defined growth levers and low fixed overhead.

Why we like it

Earnings quality is the standout: $923,100 of SDE on $2.6M revenue is a 35% margin, roughly triple the single-digit to low-double-digit margins common in home care. With FF&E of only $2,000 and a $993 per month lease, almost nothing is tied up in assets, so the cash flow is close to real owner earnings.
The service is genuinely recession-resistant and recurring. Non-medical home care for seniors and dementia patients is a need families fund through downturns, and clients are served on short- and long-term bases that generate repeat weekly billing rather than one-off sales.
Demographic tailwinds are real and durable, not hype. The aging Baby Boomer population in a large, affluent Middlesex County market is structurally expanding demand for aging-in-place services over the next two decades, giving a buyer a long runway inside an existing territory.
The franchise backbone de-risks operator transition. A first-time buyer inherits proven systems, training, recruiting tools, and brand recognition, plus a reported 100% client satisfaction history, which lowers the execution bar versus building an independent agency from scratch.
Deal structure is buyer-friendly. The 3.52x multiple is reasonable for a clean cash-flowing care business, and the seller is offering financing, which signals confidence and lets a buyer limit day-one equity while retaining seller skin in the game.

How to improve it

Launch the licensed private duty nursing line the listing flags as optional. Adding a skilled-care tier lets the agency capture higher-acuity clients at higher bill rates using an already-established referral base, expanding revenue per client without new customer acquisition.
Build formal referral pipelines with hospitals, discharge planners, and senior living communities in the territory. Home care volume is driven by referral relationships, so a dedicated community liaison role can meaningfully lift placements and billable hours within 90 days.
Attack caregiver recruiting and retention as a growth lever. In this labor-constrained business, revenue is often capped by staffing, not demand, so improving caregiver pay structure, scheduling tools, and retention bonuses directly unlocks more billable hours.
Increase average weekly hours per client through care plan reviews. Reassessing client needs and upselling additional shifts or overnight coverage raises revenue from the existing book with minimal marketing spend.
Pursue onsite staffing partnerships with senior living facilities as the listing suggests. Embedding caregivers inside communities creates predictable, high-density hours and a steadier revenue base than scattered in-home visits.
Tighten billing, collections, and payer mix. Verify how much revenue is private pay versus long-term care insurance or VA benefits, and shorten receivable cycles to improve cash conversion and support the seller note repayment.
Reduce key-person and client concentration risk early. Document SOPs beyond the franchise playbook and diversify referral sources so the business is less dependent on any single community partner or scheduler.

Diligence notes

Scrutinize the SDE build. A 35% margin is far above sector norms, so confirm what is included in the $923,100 and whether add-backs assume the owner's labor is fully replaced; the business carries 56 employees, so a working owner's role and salary must be accounted for.
Review the franchise agreement in full. Confirm remaining term, renewal rights, transfer approval requirements, royalty and marketing fees, territory protections, and any post-sale franchisor conditions that could constrain a buyer's economics or exit.
Validate payer mix and revenue durability. Determine the split of private pay, long-term care insurance, Medicaid waiver, and VA billing, since reimbursement-dependent revenue carries different collection risk and rate pressure than private pay.
Pressure-test the stated client satisfaction and revenue growth claims. Request several years of financials, client census trends, average hours per client, and churn, since the listing text is templated and contains placeholder fields that should be replaced with audited specifics.
Examine caregiver supply and wage trends. Verify turnover rates, current pay scales versus the local market, overtime exposure, and whether open shifts are being declined due to staffing, since labor availability is the primary growth constraint in this model.
Confirm compliance and licensing status. Review Massachusetts home care regulations, employee classification (W-2 versus 1099), background-check and training records, and any history of complaints or liability claims tied to in-home care delivery.

Source

Originally listed on BizBuySell. View original listing →