A loser with potential: Resurrecting a healthcare temp agency?
Asking the crowd for some wisdom on this. We are in talks with the owner of a temporary healthcare staffing agency. The company has over 30 years old is in the mid-west. The founders got ill and decided to sell in ~2020 after two years of losses. The current owner has not been able to bring it back to profitability. He has implemented some technological improvements and attempted to secure long-term contracts, with mixed success. The owner thinks that they may be able to break even by Q3. We're looking at different structures (the owner is open to anything). Here is one scenario we are thinking about: Current numbers: Revenue 2024: ~$2.5M Net Income: -$150k Timeline Year 1: stabilize the business; analyze current strategy Year 2: make it profitable Year 3: at least $5M in revenue and 3% Net Income ($150K). Year 4: Acquisition 4x EBITDA at the time (the right, not the obligation). Another scenario would be to work out a management fee and equity stake for our work. Would love to hear any ideas on this scenario.