The Capitalization of Private Duty Home Care

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.


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



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


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.


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


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


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

Insidescalability.com

Chip [email protected]

202.618.4713

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