Established 245D HCBS Provider, Minneapolis Home & Community-Based Services

$593K

SDE

2.4x

Multiple

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Full Editorial Writeup

This is a Minnesota DHS-licensed 245D Home and Community-Based Services (HCBS) provider operating in the Minneapolis metro area. The company delivers state-funded disability and long-term support services including Individualized Home Supports (IHS), Independent Living Skills (ICLS), Integrated Community Supports (ICS), and respite care. These are Medicaid-waiver-funded services for people with disabilities and complex needs, which means revenue flows through a regulated, government-backed reimbursement pipeline rather than discretionary consumer spending.

The operation reports year-over-year growth and recently cleared its 2026 revalidation, a meaningful signal in a space where licensing and compliance failures can shut a provider down overnight. It runs on a staff of 8 full-time and 13 part-time employees, with what the seller describes as modern digital infrastructure and standardized systems, suggesting the delivery model is documented rather than living in the founder's head.

With $593,482 in cash flow against a $1.4M asking price, the deal comes in at roughly 2.36x. The listing restricts buyers to existing industry owners who qualify for SBA financing, which narrows the buyer pool but also signals this is a licensed operating platform where regulatory continuity matters more than a first-time operator's enthusiasm.

Why we like it

Earnings quality is anchored to Medicaid-waiver reimbursement, which is government-funded and demand-inelastic. The $593k cash flow at a 2.36x multiple is cheap for a healthcare services business, and the recent 2026 revalidation de-risks the single biggest existential threat in this category: losing the license.
The moat is regulatory. A 245D license, a clean revalidation, and standardized compliance systems are genuine barriers to entry that keep out casual competition, and the requirement that the buyer already be a licensed owner underscores how much the license itself carries the value here.
Demand tailwinds are structural, not cyclical. HCBS services for people with disabilities are mandated and reimbursed regardless of the economy, and Minnesota continues to shift long-term care spending toward home and community-based settings rather than institutional care, expanding the addressable population.
The team is already built out with 8 full-time and 13 part-time staff plus documented systems, so this is not a founder-dependent gig business. A qualified operator can plug into an existing platform rather than rebuild compliance infrastructure from scratch.

How to improve it

Audit billing and reimbursement capture in the first 90 days. HCBS providers routinely leave money on the table through under-documented units, denied claims, and slow rebilling, so tightening the revenue cycle can lift cash flow without adding a single client.
Reduce reliance on part-time labor by converting high-performing PT staff to FT roles with retention incentives. In HCBS, caregiver turnover directly drives compliance risk and service disruption, and a more stable full-time core stabilizes both quality and margins.
Expand the service mix into higher-reimbursement waiver categories the business is already licensed to touch. Adding or scaling ICS and IHS census where county referral demand is highest can grow revenue on the existing license and staff base.
Build formal referral relationships with county case managers, hospitals, and discharge planners. HCBS census growth is driven by referral pipeline, and a systematic outreach effort to the people who assign clients is the cheapest growth lever available.
Implement staff scheduling and EVV (electronic visit verification) optimization to cut overtime and no-show gaps. Better utilization of the existing workforce protects margin and improves the documentation trail that revalidation depends on.
Layer in a compliance and quality-assurance calendar so the next revalidation is a non-event. Turning the recent clean revalidation into a repeatable, documented process protects the core asset and makes the business more attractive on eventual exit.

Diligence notes

Verify the exact composition and stability of revenue by waiver service line. Ask for the client census by program (ICS, IHS, ICLS, respite), the reimbursement rates, and concentration by referral source, since a few counties or a handful of high-hours clients can drive an outsized share of the $593k.
Scrutinize the 2026 revalidation and full DHS licensing history. Request the actual revalidation documentation, any past corrective action plans, survey findings, or maltreatment investigations, because a single serious compliance event can suspend billing and vaporize the cash flow.
Reconcile the reported cash flow to actual tax returns and DHS/Medicaid remittance data. Revenue was not disclosed, so pin down the top line, the add-backs behind the $593k, and whether owner compensation and any related-party expenses are realistically normalized.
Confirm the buyer eligibility and license transferability requirements up front. The listing restricts buyers to current industry owners qualified via SBA, so understand whether the 245D license transfers with the entity or requires the buyer's own licensure, and how that affects deal structure and timing.
Investigate labor dependency and key-person risk within the 8 FT and 13 PT staff. Identify who holds the required qualifications (designated coordinators, QDDPs), what their tenure and comp look like, and whether the departing owner personally holds any license or role that cannot simply be transferred.

Source

Originally listed on BusinessBroker.net. View original listing →