An Insider Webinar Capitalization of Private Duty Home Care Inside Scalability Copyright© 2016
An InsiderWebinar
Capitalization of Private Duty Home Care
Inside ScalabilityCopyright© 2016
Big Picture for Private Duty
Capitalization of Home Care
Tech-driven provide
rs
Capital follows capital
Consolidations
Capitalization of
platforms
This is an era of real opportunity for growth-oriented private duty companies.
While the private duty industry is deceptively complex and intensely competitive, entrepreneurs can ride the wave of favorable demographics, highly fragmented marketplace and eager investors.
Inside ScalabilityCopyright© 2016
June2014
Sept2014
July 2014
Apr 2015 May 2015
ClearCare- Series B $11 million.
HomeHero- Seed $3 million
HomeTeam- Series A $11 million
Honor- Series A $20 million.
CareLinx-Series B $3 million-total raised to-date--$5 million
Capitalization of Home Care
Inside ScalabilityCopyright© 2016
Kindly Care- Total capital raised $6.25 million
ClearCare- Series D $60 million-–total raised to-date--$75.6 million
Aug2016
HomeTeam- Series B--$32.5 million—total raised to-date--$43.5 million
Honor- Series B $42 million—total raised to-date--$62 million.
HomeHero- Series A $20 million-total raised to-date--$23 million
Aug 2016
Feb 2016Jun 2015
Oct2016 Inside ScalabilityCopyright© 2016
Capitalization of Home Care
Since 2014, more than $200 million has been invested into tech-driven in-home care providers and supporting technologies.
1. Well-capitalized2. Tech-driven
approach3. Focused on
caregiver satisfaction
New Market Entrants
Attracting
mor
e
capit
al
Build up of
platforms
Consolidation
Acquisition Focused Capital
Trending Towards Consolidation
This is an era of real opportunity for growth-oriented private duty companies.
While the private duty industry is deceptively complex and intensely competitive, entrepreneurs can ride the wave of favorable demographics, highly fragmented marketplace and eager investors.
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7Copyright 2009
Micro• Revenue: $1
million-$2.5 million
• Valuations: 2-3x EBITDA
Small• Revenue: $2.5
million to $5 million
• Valuations: 3-5x EBITDA
•
Growth• Revenue $5-10
million• Valuations: 4-
8x EBITDA
Platform• Revenue >$10
million• Valuation: 6-
8x EBITDA
Investors want in to private duty industry. They generally enter an
industry through acquisitions.
Going forward, an increasing appetite for acquisitions will drive valuations.
However, there are risk in
acquiring smaller agencies which will limit
valuation expansion.
Private DutyValuations
Inside ScalabilityCopyright© 2016
Insider Membership
• Featured articles on topics that limit scalability in private duty and how to overcome them
• Weekly insights from the field from business owners, investors, investment bankers and other leaders in private duty
• Round up of news in the private duty industry with analysis on how it impacts growth initiatives
• Analysis of important general healthcare news and policies that impact private duty or represent opportunities for members
• Capital provider report: a running list of the capital providers interested in private duty
• Buyer report: a running list of active buyers in the market
• Private duty acquisition tracker, with valuation analysis
• In-depth, proprietary white papers specific to the private duty industry
• Case-studies on growth businesses, specific to the private duty industry : 1) How were the capitalized 2) How did they scale? 3) Which combination of scalability initiatives did they implement to break the glass ceiling? 4) What’s next for them?
• Periodic analysis on breaking news in private duty and beyond
• Webinars/interviews with leaders from inside and outside of private duty. 1) Capital providers 2) Business strategists 3) Entrepreneurs from other industries that have competed in multi-sided business models
• Product and service reviews on vendors and service providers to the private duty industry
Every Month Additional Resources
Inside ScalabilityCopyright© 2016
More Benefits
Collaboration
• Annual Deal Conference (exclusive to members only)—Gathering of owners, capital providers and innovators. Unique set of speakers and guests to network, reenergize, innovate and collaborate.
• Strategic introductions—We can make (non-transactional) strategic introductions to other members and notable industry contacts for the purposes of collaborating, implementing growth initiatives and innovating.
• Exclusive networking groups--Inside Scalability, periodically and at the request of the members, will organize networking groups to collaborate and innovate on various projects.
For Just $79/Month
Cash at Close50-60% at close
Earn-out30-40% of potential transaction value
Promissory Note10-30% of transaction value3
Promissory Note
2Earn-out
1Cash at Close
Transaction Structure for Micro and Small
Companies
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Chip [email protected]
202.618.4713
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