Okay, Jenna, let, let's. So as I said, there are a lot of examples of home care agencies, home health care, all the different flavors, businesses being acquired or being looked at by searchers. I've interviewed a lot of people who have bought this type of business.
Acquiring Minds
A Search Fund Journey to $350m
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And you know, so, so much of this conversation, this last segment here will be like, well, it depends and what, what type of, what type of home care or home health care business are we talking about? I mean there's, I mean as we heard you say earlier, that even the state that you choose, that you chose to enter the markets that you chose, the geographic markets you chose to enter, you know, some…
So, so there's just, it's going to be very hard to make generalizations, but if you can put yourself in a searcher's shoes, even preferably like an SBA searcher's shoes, somebody who's taking a personal guarantee and buying a business with half million dollars of earnings, maybe a million, maybe even more than a million dollars of earnings, but still way smaller than your business.
Do you feel like broadly this space is a good one for searchers to look at? If you can generalize so broadly?
I think the number one thing to keep in mind is it's a highly people intensive business. You're at any size, but certainly as you scale it, you need to bodies to do this work.
And so you have to be comfortable and prepared for that to be a big part of what you're dealing with are people issues, the man exposing himself in the car or any kind of HR issue, like the, the scale of the number of employees you're going to have versus the revenue is going to be high. And so if dealing with people is not for you, this is not the space to be in. And it's not just your employees…
Right. So the, the son and daughter of the elderly person and their issues that they're bringing to the table or the parents of someone with IDD who abuse their client and that's why they have id. Like there's a whole dynamic of people, things in this space that you need to be prepared to be a big part of your day to day, especially at the smaller end where you don't have the people in place to…
The flip side of that is as you're thinking it was, we're like seeing AI and all the potential for AI to disrupt industries like the care still is a people business. So there's a huge opportunity to use AI on the administrative side of our business, which is very exciting as you think about compliance and process. Like there's no more ripe industry than ours to make more efficient, but you still…
And so it's not going away. AI isn't going to completely eliminate our industry. And so that's in today's investment environment where AI is like probably on the top five questions.
This space is pretty insulated and so that's an exciting thing for people businesses. The third thing I'd say is like scale is hard. Like we've obviously grown a lot through acquisition, but it's a one in one out business.
Like it's not like a SaaS business where you're scaling like this, like this is. It's a grind to grow. And so there are tailwinds.
We talked about the demographic, so there's opportunity. But it's not a completely scalable business in the way some other search spaces are.
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