This post is anonymous for my obvious reasons.

I bought a home care franchise in California using SBA loan only few months ago. The sale price was less than $500K (SDE $200K or a little less) but I still took an SBA loan along with a seller note for liquidity reasons.

First the positives about the business

  1. Franchisor with stellar reputation, excellent support team, good operational processes to follow
  2. Team is motivated
  3. Very high ratings and reviews in the local territories resulting in constant inbound calls (I have turned away 2-3 clients in the past month)
  4. Premium pricing compared to competition yet demand is high
  5. High concentration of target clients (senior communities) in local territories
  6. High reputation among caregivers who like working here resulting in long tenure (more caregivers = bigger business)
  7. Has two territories with one of the territories being ignored by prior owners (room for future growth)
  8. Outdated processes by prior owners who just wanted to retire (room for bottomline enhancement)
  9. Franchise network known for roll up style acquisitions and large multi-unit owners. So if you nail the processes in your 1-2 territory, you can roll up.
  10. Business is VA certified resulting in steady stream of clients besides organic inbound. VA reimbursement in CA is excellent right now with reasonable payment timelines.
  11. No current BD/marketing initiatives for clients or hiring. Everything is inbound and thus a high scope for future revenue growth.

My Challenges

  1. My own serious health concerns that I prefer not to share

  2. Only 3 months in, I dislike this industry and the nature of the business. No, it is not a buyer's remorse or the reality dip of the Dunning Kruger effect. I have a tech background and I long to get back into it even as an employee somewhere else. I was myopic to not have realized this.

  3. I have come to realize I just don't enjoy this industry. I looked at it purely from a business standpoint before and it checked the boxes. But dealing with elderly people, clients passing away, hospice etc is not something I want. It is depressing for me.

  4. It is a people heavy business and I have no interest in this (should have thought of this, I know).

  5. I may have to be out of the country for personal reasons and this may affect my ownership especially in the initial stages.

  6. I'm literally miserable and stressed (from dislike) coming in to work every day but I put up a facade for the team (who are a motivated group).

I would be excited if someone buys it for around the same valuation that I just paid. How realistic is it to sell something so quickly that has an SBA loan and a seller note? Am I genuinely stuck with this for the near term? Walking out without a buyer means losing around $500K which is not something I can afford to do. I'm hoping the community here can give their 0.02 for my realistic options here.

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