On March 31 last year KYN Capital Group Inc (OTCMKTS:KYNC) made a significant announcement with regards to a key acquisition. At the time, the company announced that it signed a letter of intent with regards to taking over a New Jersey-based home healthcare services provider.
The services that are provided by the home healthcare services provider include Dementia care, Alzheimer’s care, around the clock care, personal care, and companion care among others. In addition to that, transportation and homemaker’s services are provided as well. It could be a particularly important acquisition for KYN Capital Group considering the prospects of the home healthcare services space.
In order to provide a better idea about the industry, KYN Capital cited data from the United States Census. The data from the census suggests that the United States is adding as many as 8000 people over the age of 65 every day and eventually the number of senior citizens in the country is projected to hit 57.8 million in 2030.
Considering the continued rise in the aging population in the country, the demand for home healthcare services is almost certainly going to go up. In this regard, the New Jersey area is a particularly interesting case study.
Home care services in the area have grown at an impressive clip in the area and the demand is rising by the day. The company that has been targeted by KYN Capital is one of the handfuls of accredited home healthcare service providers in the area and hence, it is in the right position to cash in on the rising demand.
More importantly, the state of New Jersey has limited accreditation for such companies, and hence, there is no danger of a spike in competition immediately. KYN Capital announced at the time that the target company had managed to generate revenues of $1.4 million in 2019. However, it was also added that revenues had grown on an average of 30% every year.
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