OSHA & HIPPA Compliance and HR Consulting Firm

Consistent Average above $400K Sales with Healthy 30% Profit Margin in 2021

Site Posting Image

Specifications

 Price:
$525,000
Revenue:
$427,100 (Trailing 12 Mo.)
Cash Flow:
$193,250 (3 Yr  Weighted Avg.)
Location:
Silicon Valley
Service Area:
San Francisco Bay Area
 Profit Margin:
30%
 Employees:
3 Ft Employees
+ 1 FT Owner
Reason for Sale:
Moving to new
venture
Goodwill: 8 years solid growth, highly differentiated niche, repeat customer base
Year Established:  2010
Services:  OSHA / HIPPA Compliance Consulting and Training, HR Logistics and Strategies
Client Snapshot:  Dental Offices / Medical Offices / Corporate Customers
Lease:  2650 sq. ft., $1,350/mo. including NNN, Month-to-Month, relocatable
Personnel:  2 FT, currently hiring another FT
Software:  Xero, Microsoft 365, Filemaker Pro
License Requirements:  California Dental Board Approved CE Provider License

Company is a full-service, boutique compliance firm, working with clients where it is imperative to maintain OSHA and HIPPA compliance.  The company ensures that their clients’ business and staff are properly educated, and that the client facility is also fully compliant, thereby mitigating risks for the Company’s clients. 

Building on the success of the Company’s compliance work, the business also provides a broad range HR-related services for clients; providing a range of broad HR set-up and creation services from employee manuals, to forms for hiring, termination, and much more.

A Buyer for this business should be knowledgeable regarding OSHA and HIPPA compliance, and have a CE Provider License with the California Dental Board. Because the Company also provides HR related consulting, some knowledge of HR related processes is also useful.

The departing owners will offer training and transitional support to facilitate buyer’s success in the 100% acquisition of this business.

Value Proposition

  • 8 Years Established Reputation
  • Differentiated Service Offering in Defensible Niche Market
  • 30% Profit Margins on Revenues of $427,100
  • Repeat Customer Base
  • Expansion into HR Consulting Creates Incremental Opportunity
  • Strong Growth Potential With Increased Marketing Push
  • Experienced Team of Consultants
  • Office Relocatable or Go Virtual
Profit Margin Chart

Revenue Breakdown

Revenue by Service Chart
Revenue by Customer Chart

Financial Highlights

  • Listing Price $525,000
  • 2021 TTM Cashflow $213,147
  • 2020 Cashflow $166,175
  • COVID dip recovery in 2021 over 2020
  • Significant growth opportunities
  • Business has no inventory to maintain
  • Business lends itself to successful remote work
Sales & Cash Flow Chart

Cashflow Analysis

Financial Statement Table

Asking Price

The asking price is determined using a cash flow methodology. Cash flow is the sum of net income from the business plus any non-cash expenses, non-recurring items and any seller’s personal expenses. A multi-factor multiplier is applied to the cash flow based on the condition of the business.

For this business, a three-year average cash flow is applied making the business price more favorable to the buyer. The multiplier applied in this case is 1.85x, below the market in favor of the buyer.

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Funding Example

Purchase Price: $525,000

20% Buyer Down Payment

$105,000

Buyer’s Equity

80% Bank Loan

$420,000

10-Yearterm at a rate of 6% = Monthly loan payment of $4,663

  • Cash Flow (SDE in 2021): $213,148
  • Annual Payment to Bank: $55,956
  • Net Profit (After Expenses and loan payment): $157,192
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Coverage Ratio Box

* Please note that the decision of whether to extend a loan on any sale belongs to the bank, and this document does not guarantee specific terms or verify that financing is available.