should i buy the following businesses?

by a searcher from University of Melbourne

2 years ago

broker brings me deal. 7 year old home health business. breaks even every year. vendor too busy with other job. has potential profit if permanent staff are converted to casual. has never made a profit, even pre-covid. license comes with sale. business has 250k liabilities, vendor wants 500k (vendor will clear debts on settlement). if my board sees potential in making a profit from day one if we convert permanent staff to casual. am i wasting my time?

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professional from University of Kentucky

Remember the following about the HH industry. Your competitors are NOT other HH agencies. Its another company who will pay more per hour with benefits, and other perks. For example, Home Health workers leave to go into another industry entirely most of the time. Example, Amazon.... so converting from permanent to casual will put you back into the War for Talent, and given the fact there are 14 million jobs unfilled at the current moment this will be problematic for you.

2 years ago | like reply | 0 likes

professional from University of South Carolina - Darla Moore School of Business

Converting permanent staff to casual might be an opportunity to achieve profitability, but it's a large risk factor as well. Should exercise a lot of caution and speak to other industry professionals to see if they can offer some direct experience with a similar shift.

2 years ago | like reply | 0 likes

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