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Home Care Business Valuation Formulas:

Valuing Home Care Businesses These are two general business valuation formulas or methods for valuing small and independent home care business that provide non-medical caregiver services to seniors and disabled individuals.

Valuation Formula: Approximately 50% of annual gross sales plus inventory. Or 2.5 times the owner's annual adjusted net income plus inventory.

Broker Comments: Due to our vast aging baby boomer population and rising health care costs businesses that provide non-medical home or personal care services are very popular with small business buyers. In general, its also been my experience that independent home care businesses are easier to sell than franchises. Pending new labor laws in 2012 could potentially have a negative impact on the profitability of the home care industry according to some experts.

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