Tommy Dobczyk identifies deal-killers in a business acquisition: the seller wants $1.35M but the buyer's budget is $800K-$1.1M, staffing costs are underestimated at $10K-$15K monthly when nurses earn $15K-$18K net, and licensing risks aren't properly covered. He warns that misaligned numbers and underpriced labor will sink the deal.
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These are the red flags: revenue assumption conflict, property price change, the capital stack. So the startup budget shows acquisition $800,000 to $1.1 million, but Rogers Properties' appendix shows $1.35 million asking price. So that's where it's really tricky. And then licensing risk is the real deal killer here. So making sure that that's all covered. Staffing looks light, meaning that the package estimates $10,000 to $15,000 a month staffing. I know for me, I was a registered nurse. I made $15,000 to $18,000 a month, uh, net bring home. That was me as a nurse.
Right.
Right. So it's like, ooh, get a little worried about it when they say the whole staff is $10,000 or $15,000 a month when I know what I make.
So, and then, uh, because mostly the only staff would be like just a home manager basically, because, and coordinator that would just coordinate, you know, things for the residents.