485991 – Special Needs Transportation

Asking Price $930,000

2023 Sales $811,004

2023 Earnings $312,722

The Non-Emergency Medical Transportation Market is projected to reach US $15.57998 billion by 2028, from US $8.65887 billion in 2021, expanding at a compound annual growth rate of 9.6% from 2024 to 2032, according to yahoo! finance.

The Non-emergency Medical Transportation Market provides transportation services for patients who do not require urgent medical care but require assistance accessing healthcare facilities. The aging population, increasing prevalence of chronic diseases, and rising demand for specialized transportation services catering to individuals with disabilities or limited mobility are driving the market growth. Ownership in business of these services can strive to surpass competition by overcoming industry constraints including regulatory challenges, reimbursement limitations, and very predominantly, concerns regarding patient safety and quality of service. Market opportunities lie in technological advancements like ride-based apps, partnerships between healthcare providers, and expansion of services to underserved rural areas.

Ensuring folks are cared for and delivered safely in their journey to wellness, this Company was established in 2021 by current ownership, who then identified a strong need and viable opportunity within this service niche. The company is an essential services operation and works with California state providing Medi-Cal contract work.

The Company is partnered with a healthcare transportation solution as a preferred healthcare vehicle services subcontractor. Through these partnerships, seventy percent of their sales are generated from individual healthcare plans, medical groups, state-sponsored programs, medical providers and medical care facilities in Los Angeles County, CA.

Twenty percent to 25 percent of revenue is generated from direct-provider agreements with individual private facilities.

The remaining 5% to 10% of income generated is from individual self-pay client relationships.

The largest concentration of support services is for patients needing dialysis appointment transportation and secondarily, doctor’s appointments.

Three shareholders of the S-Corporation are 50%, 33.5% and 16.5% ownership. The lowest percentage owner works 0 hours in business. Two remaining owners work 20 hours and 15 hours/week respectively. Owner/management roles and responsibilities include dispatching, scheduling, billing, 24/7 phone call reception, and W-2 employee payroll processing. Formal office hours are 6 am to 6 pm Mon – Sat.

Office support hours 8 am to 10 pm Monday through Saturday each week. Three company-owned van units are out eight to 10 hours per day, from 3:30 am to 8 pm M, W, F and 6:30 am to 5 pm T, Th, Sat. Five full-time W-2 drivers / patient handlers / patient transfer employees are on staff. Two additional P/T drivers work about 25 hours/week. Employees are trained, licensed and permitted.

Three each 2020 Ford Transit 150 cargo vans are included in sale transfer: Van 11: 185,622 miles, Van 12: 159,500 miles, Van 13: 176,622 miles. Transportation vans are meticulously maintained with bi-monthly mechanical inspections and maintenance. Gurneys and stair chairs are additional equipment included at sale. The Company will transfer assets free and clear of liens.

The Company utilizes 700 SF leased office space in North LA County at $1,000/MO on month-to-month lease arrangement. Employee cars and three company vans are parked onsite at this office location.

Ownership will provide four weeks of transitionary support at 30 hours / week, or as negotiated by parties.

Owners are selling to permanently relocate their families outside of California.

The narrative above is compiled and written from information provided by company seller, by Margot Murphy, principal of Sage Advisory Group, a California business brokerage providing sale, acquisition and valuation services for owners of privately held companies. Buyers are advised to verify all information provided to their complete satisfaction.