The firm that we are representing for sale has managed to start solving these difficulties facing nurse staffing while also adding services that focus on supplying therapists—a burgeoning, high growth, high bill rate segment. The firm was founded in 2001, growing from $800k revenues its first year to approximately $3.4 million in 2002 and 2003—with a gross profit margin of approximately 30%. Over this time frame, while growing with the rest of the market, the firm began an overseas training, recruitment and visa process which is now beginning to pay off.
Over the last year, the firm has submitted approximately 100 H1-B Visa applications, of which 55 have already been approved. Of this 55, 30 of the nurses and therapists have “landed” and the remaining expect to be brought in at a pace of 2 to 4 per month. By the end of this cycle, the majority of the others will have been approved; thus continuing the flow of new dedicated long term help. Another 40 applications have already been prepared, submitted and are being processed for the current year, 2004. The high bill rates (in excess of $40 per hour, and currently averaging closer to $50/hour) and healthy profit margins that are associated with RNs and therapists equates to between $80,000 to $100,000 in revenues per year per new employee. Also, as the firm holds the visa, these contractors are bound to the firm for several years, and thus, cannot be hired away by other competing firms.