During the last fiscal year, two publicly traded home health care companies earned over $83 million dollars combined. The bloodline of this company is billable hours. In a correspondence with the Chief Financial Officer of privately owned Bayada Nurses Home Care Specialists ("Bayada"), he discussed their current endeavor of opening a new branch in Florida and included their expected forecast. Home Health Plus was able to use these figures to estimate the startup financial information specific to this company. The first year’s billable hours would be in total 49,462 and in year five increasing to 79,744.
After the fifth year, Home Health Plus’ balance sheet is free of all liabilities – thus all assets are funded by the owners’ equity. The revenue portion of the income statement is comprised solely of a conservative 1% monthly growth rate and operations income. After the first year of operation, the net income for Home Health Plus is projected to be $19,876. By the end of year 5 the net income swells to $323,048. According to the statement of cash flows Home Health Plus should generate $23,335 of cash from operations in just the first year. Year 5 operating cash balance at end of year five is $904,362.
Per discussion with Marlon Medina of JP Morgan Chase’s Business Loan department, Chase would be willing to make a small business loan in two forms using personal or business collateral. It is the intent of Home Health Plus to pay the loan back within five years. The business valuation method will be an income based approach of Net Present Value of future, projected cash flows with the weighted average cost of capital being used as the discount