How to find an NDIS provider for sale

Why buy an NDIS provider?

Buying an NDIS provider offers several advantages over starting from scratch. First, registering as a new provider involves navigating complex compliance requirements and establishing systems that meet the NDIS Practice Standards. These steps are time-consuming and can delay operations.

Purchasing an existing NDIS provider means acquiring a business that complies with regulations, has established policies and procedures, and employs trained staff. Additionally, the company will typically have a participant base, which ensures immediate revenue generation. For entrepreneurs looking for a smoother entry into the sector, buying an established provider can save time, reduce risk, and provide a solid foundation for future growth.

‍

What are the steps to buying an NDIS provider?

1. Understand the NDIS market

Begin by researching the NDIS framework, including its operational requirements, funding models, and the types of services in demand. This knowledge will help you identify the most suitable NDIS business for your expertise and investment goals.

2. Set your budget and financing options

Determine your financial capacity to purchase a business. Consult an economic advisor to explore funding options such as personal savings, business loans, or investors. Ensure you account for additional costs like legal fees, due diligence expenses, and potential investment in improving the business post-purchase.

3. Search for available businesses

Look for NDIS providers listed for sale on online marketplaces such as Seek Business, Business For Sale, or through specialised NDIS business brokers. Networking within the industry and attending relevant events can also help you discover businesses that might not be publicly listed.

4. Conduct due diligence

Before committing to a purchase, thoroughly review the business's financial records, compliance history, and operational structure. Here's a detailed checklist:

• Financial health: Analyse profit and loss statements, tax returns, and cash flow reports.
• Compliance: Verify the business's adherence to NDIS Practice Standards and any history of breaches.
• Client base: Review the participant demographics to ensure they align with your business goals.
• Staff: Assess employee qualifications, experience, and satisfaction levels.
• Assets: Evaluate the condition of physical assets and infrastructure.

Engage an accountant and a solicitor experienced in NDIS businesses to ensure a thorough evaluation.

5. Negotiate and finalise the deal

Once due diligence confirms the business's viability, negotiate the purchase price. Ensure the contract includes:

• Transfer of NDIS registration
• Handover support from the previous owner
• Detailed asset and liability records

Work with a lawyer to draft and review the agreement to avoid future disputes.

6. Complete the transfer of ownership

Notify the NDIS Quality and Safeguards Commission of the ownership change and update business registrations, licences, and agreements. Communicate transparently with staff and clients to ensure a smooth transition.

‍

What are the benefits of buying an NDIS provider?

1. Established reputation

Acquiring an NDIS provider with a positive reputation in the community can give you a significant head start. Trust and goodwill take time to build but are often already present in an established business.

2. Immediate cash flow

An existing participant base means the business will continue to generate revenue, enabling you to focus on improving services rather than attracting initial clients.

3. Trained staff and systems

Established NDIS providers have operational systems and trained employees, reducing the learning curve and initial setup time.

4. Regulatory compliance

An existing business will typically comply with NDIS standards, saving you the hassle of navigating the rigorous registration process.

How do you make sure you buy the right NDIS provider?

1. Check compliance history

Ensure the business has a clean compliance record with no unresolved NDIS Quality and Safeguards Commission issues.

2. Assess financial health

Review financial documents to confirm that the business is profitable and sustainable. Seek explanations for any anomalies or inconsistencies.

3. Analyse the participant mix

Understand the demographics and needs of the participants to ensure they align with your expertise and goals.

4. Evaluate staff and culture

Meet the employees to gauge their commitment, skills, and satisfaction. A motivated team is crucial for long-term success.

5. Verify registration status

Ensure the business's current NDIS registration includes the necessary support classes.

6. Seek professional advice

Engage experts in law, accounting, and NDIS operations to provide guidance and ensure a sound investment.

‍

What's required to be an NDIS provider?

To operate as an NDIS provider, you need:

• NDIS registration: Register with the NDIS Quality and Safeguards Commission.
• Compliance with standards: Adhere to the NDIS Practice Standards and Code of Conduct.
• Qualified staff: Employ personnel with the appropriate training and qualifications.
• Systems and processes: Develop policies for risk management, incident reporting, and feedback.
• Insurance: Maintain public liability, professional indemnity, and workers' compensation insurance.

How much does an NDIS provider make?

Earnings vary based on the size and services of the business. Small to medium NDIS providers often generate annual revenues between $500,000 and $2 million, with 10% to 30% profit margins. Efficient management and service delivery are key to maximising income.

Is an NDIS business profitable?

An NDIS business can be profitable if managed effectively. Key factors influencing profitability include:

• Efficient operations: Streamline processes to reduce costs and improve service delivery.
• Participant satisfaction: Happy participants are likelier to continue services and refer others.
• Diverse offerings: Expanding the range of services can attract a broader client base.

Why Thriday is perfect for NDIS providers

Thriday simplifies the financial management of NDIS provider businesses by combining automated accounting, tax, and bookkeeping tools in one platform. With Thriday, NDIS providers can efficiently track expenses, manage budgets, and ensure compliance with financial regulations, leaving more time to focus on delivering quality care to participants.

‍

Can you sell an NDIS provider business?

Yes, NDIS provider businesses can be sold. To prepare for a sale:

• Ensure compliance with all NDIS requirements.
• Maintain accurate financial and operational records.
• Strengthen client and staff relationships.
• Highlight the business's profitability and growth potential.

Working with a business broker specialising in NDIS providers can help you find the right buyer.

Key takeaways

Buying an NDIS provider is a practical way to enter the disability support sector with reduced risks and immediate revenue opportunities. Before purchasing, conduct thorough research, seek professional advice, and ensure compliance with all NDIS requirements. With careful planning and management, an NDIS provider can offer financial rewards and the satisfaction of making a meaningful impact on people's lives.