We are pleased to announce the kick-off our acquisition program. As part of our growth strategy, we are now looking for high quality home care agencies throughout the State of Texas. We believe that there are many agencies that have great client relationships and wonderful caregivers, but they are too small or otherwise unable to deal with the regulatory, recruiting, marketing, programming and financial challenges that many home care agencies now face.
We are large enough that we can invest in programs, compliance, professional recruiting and other areas that many agencies cannot. The client is the beneficiary of these efforts, and we hope to spread these benefits to a much wider network in the coming months and years through our acquisition activities.
When I joined Custom Caregivers in April of this year, I believed that the company had an exceptional platform to delivery high quality home care to aging adults. After being part of the team for almost five months, my expectations have been exceeded! We are now ready to seek acquisitions and absorb clients and caregivers into our operating platform.
We look forward to working with individual owners that are considering selling their agency. Working with the business brokerage community that specializes in our industry is also a big part of our acquisition plan.
We are currently in the home personal care business in the Dallas-Ft Worth area. We are planning to grow our business significantly over the next 24-36 months, both organically and through acquisitions. Our goal is to be a major player in all of the major Texas markets (DFW, Houston, Austin, San Antonio, etc.) and we will consider acquisitions throughout the state. The ideal acquisition candidate has the following characteristics:
- Services offered: non-medical home care (i.e. personal care to aging adults); we will consider businesses that provide other services, such as medical care and other in-home services as long as at least 80% of their revenue comes from Personal Assistance Services (PAS; i.e. non-medical home care).
- Location: Texas; in our near Dallas-Ft. Worth, or other major markets in Texas.
- Size: A census of at least 8 clients, ideally 30-100 or more.
- Client type: We prefer clients that are similar to the clients we currently serve, in terms of payment (private pay or long term care insurance), tenure (our clients typically stay with us for months or years, although we do take short term clients as well) and service needs (typically companionship, bathing, dressing, eating, bathroom assistance, errands, transportation, etc.).
- Referral sources: the ideal acquisition candidate will have a consistent flow of business from a variety of referral sources that are not dependent on the nature of the personal relationship of the owner/seller with the referral source.
- Staff: In the ideal acquisition, the majority of the office staff, marketing and sales team and in the field caregivers will want to stay on.
- Seller financing: Although not a requirement, in the ideal scenario, the seller will provide some amount of seller financing.
- Owner involvement: We can structure a transaction to meet the needs and preferences of the existing owner, from staying on full time, to a transition period, to a full walkway at losing.
- Independent agency: Due to the restrictions and legal requirements in essentially all franchise agreements, any acquisition candidate will have to be an independent agency and not be connected to any franchise system.
We have the financial resources readily available to complete a transaction of any reasonable size. And we are already working on some very interesting acquisition candidates.