New Jersey In-Home Senior Care Agency For Sale - $1.65M with $504K Profit
The headlines about the senior care industry are compelling. A “Silver Tsunami” of aging Baby Boomers is creating a tidal wave of demand for services. In affluent areas like Monmouth County, New Jersey, this demographic certainty has created a gold rush. Our analysis identified over 70 home care agencies operating in the county, all competing for a piece of a lucrative, growing market.
Amidst this intense competition, a specific business stands out: a well-established, 16-year-old in-home care franchise, currently listed for $1.65 million. It generates an impressive $2.84 million in annual revenue and $504,000 in Seller’s Discretionary Earnings.
But what truly justifies this premium valuation in such a saturated market? The answer lies beyond the demand and deep within the operational realities of the business.
The Financial Snapshot
Key Financial Metrics
- Annual Revenue: $2.84 million
- Seller’s Discretionary Earnings (SDE): $504,000
- Profit Margin: 17.7%
- Asking Price: $1.65 million
- Valuation Multiple: 3.3x SDE
- Business Age: 16 years (established franchise)
The Core Challenge: A Tale of Two Demands
While there is an undeniable demand for senior care, there is a countervailing crisis in the supply of caregivers. The home care industry is facing a systemic labor shortage, with national caregiver turnover rates reportedly exceeding 70% annually. This creates immense upward pressure on wages and makes staffing the single greatest constraint on growth. An agency can have a waiting list of clients, but without qualified, reliable caregivers, it cannot generate revenue.
This is where the investment thesis for this Monmouth County franchise becomes clear. Its longevity and significant revenue suggest it has built something more valuable than just a client list: a robust and repeatable system for recruiting, training, and, most importantly, retaining caregivers. This “human capital” supply chain is its most powerful competitive advantage—its moat in a sea of competitors.
Critical Due Diligence Areas
For a potential buyer, the due diligence checklist must prioritize operational resilience over market opportunity:
Labor Metrics
What are the agency’s caregiver turnover rates for the past three years compared to industry averages?
Recruitment Pipeline
What are the specific, proven channels for finding new talent? Is there a unique partnership, like the one a competitor forged with a local vocational school, creating a proprietary talent funnel?
Compensation and Culture
How do the agency’s wage and benefits packages stack up against the 70 other local agencies? What non-monetary incentives and cultural elements contribute to retention?
Investment Thesis
While the demographic tailwinds in senior care are powerful, they are not enough to guarantee success. In a crowded, high-stakes market like Monmouth County, the businesses that thrive will be those that solve the labor equation. This $1.65M franchise is priced on the assumption that it has already built that solution.
Why This Premium Valuation Makes Sense
- Proven Caregiver Retention System: 16 years of operational history demonstrates ability to solve the industry’s biggest challenge
- Market Saturation Advantage: Established relationships and reputation in a market with 70+ competitors
- Demographic Tailwinds: Monmouth County’s affluent aging population creates sustainable demand
- Franchise Support: Proven business model with ongoing corporate support and training
For the right buyer with healthcare industry experience, this represents an opportunity to acquire a solution to the senior care labor crisis rather than just another agency.
This listing represents a premium opportunity for experienced healthcare operators seeking an established business with proven staff retention capabilities. The combination of strong financials, demographic advantages, and operational expertise justifies the valuation in this competitive market.