Selling a Social Services business

In Social Services, deals usually come down to continuity. Buyers look for proof you can keep billing and staffing the day after closing, with documentation that stands up to audits. They will dig into licensing, EVV, authorizations, payroll timing, and incident response to make sure nothing stalls admissions or reimbursement.

Get your valuation Back to industries

What's your social services business worth?

What buyers evaluate, and how to prepare

Walk me through your billing cycle from service delivery to payment.

Deal-critical

Billing Cycle

What buyers determine

Buyers are checking whether your cash timing matches what’s typical for your Medicaid MCOs, counties, and other payers. They also want to see whether delays come from fixable issues like late notes, EVV exceptions, or denials. Most of the time, they are also modeling whether the business can reliably float payroll during reimbursement lag.

How to prepare

Write the workflow from visit completion to payment posting, including who touches each step
Report days-to-bill and days-to-cash by payer and the top five reasons claims get stuck
Summarize denials by payer with root causes, fix rate, and average days to resolve
Name the accountable person for approvals, submissions, and denial work

Great answer

We bill weekly. Notes are due within 24 hours, supervisor sign-off is within 48 hours, and claims go out every Friday. Over the last 12 months, average days-to-cash are 52 for Medicaid MCOs and 38 for county funding. Denials average 3.1% of claims, and we resolve 90% within 10 business days. The main drivers are EVV exceptions and occasional expired auths, and we track both weekly.

Good answer

We can explain the steps and roughly how long each payer takes. We also know the common denial reasons, but we have not tracked days-to-cash or resolution times consistently.

Red flag

Medicaid pays when it pays. We submit when we can, and denials happen sometimes.

How Rejigg helps:Rejigg’s data room and QuickBooks import help you show billing-cycle metrics, denials, and cash timing in a buyer-ready format.

If you run residential programs, what is the change-of-ownership path and timeline in your state?

Deal-critical

Licensing & Change of Ownership

What buyers determine

Buyers are looking for a clear answer on whether operations and billing can continue through a change of ownership. They are also testing whether you know the real sequence and timing for notices, applications, surveys, inspections, and required roles. If there is any chance of a pause in admissions or billing, it will affect price and structure.

How to prepare

List each license, certification, and enrollment and what it is tied to (entity, address, individual credential)
Build a change-of-control checklist by program with steps, lead times, and gating items
Confirm assignability and approval needs for payer agreements and placement contracts
Identify Day 1 signers and credentialed roles required to avoid a billing pause

Great answer

For our group home, the license is tied to the facility address and the operating entity, not my personal credential. In our state, change of ownership requires 30 days’ notice, an application package, and a site visit. We mapped the steps and typical timing with our consultant and the licensor. Medicaid enrollment requires updated disclosures and revalidation, and billing can continue during processing as long as the operating entity stays active and we meet staffing and QA requirements.

Good answer

We know an ownership change triggers notices and a review, and we have the right contacts. We still need to write down the exact steps and timing.

Red flag

Licenses should transfer. We will sort it out after closing.

How Rejigg helps:Rejigg lets you package and share a clean change-of-ownership packet and track milestones alongside deal timelines.

What payers do you bill, and what percentage of revenue comes from each payer type?

Deal-critical

Payer Mix

What buyers determine

In Social Services, payer mix is often policy risk. Buyers want to know how exposed you are to a single Medicaid MCO, waiver program, county board, or school contract changing rules or rates. They also look for evidence you can adapt when utilization management, authorization standards, or billing edits shift.

How to prepare

Break out revenue by payer and by program line (MCO, FFS Medicaid, county, schools, private pay, grants)
Show payment timing and denial rates by payer when available
Document recredentialing, renewals, and grant cycles that can disrupt billing or volume
Explain what changes volume in plain terms (UM rules, auth changes, rate updates)

Great answer

Last year, revenue was 62% Medicaid managed care across two plans, 21% county board funding, 10% school contracts, and 7% private pay. No single plan is over 38%. We track denial rate and days-to-cash by payer monthly. We managed two MCO policy changes in the last three years without service interruptions by tightening auth tracking and running documentation spot checks.

Good answer

Medicaid is the majority, and we can estimate the split. We have not tied payer mix to payment timing or denial metrics.

Red flag

We have lots of clients, so concentration is not an issue. It’s mostly Medicaid.

How Rejigg helps:Rejigg helps you present payer and program mix early so the right buyers engage and diligence moves faster.

How do authorizations work in your programs, and how often do you get authorization gaps?

Deal-critical

Authorizations

What buyers determine

Buyers are trying to quantify unbillable or recoupment-prone services caused by missing or expired authorizations. They also want to see whether authorization control is built into scheduling and billing. If it depends on one person remembering dates, buyers will discount the revenue.

How to prepare

List services that require prior auth, renewal cadence, and the accountable owner by name
Track auth gaps with units or dollars impacted and what you changed afterward
Show the monitoring method and the escalation path when an auth is at risk
Document how you handle retro auth requests and what you treat as non-billable

Great answer

All HCBS services require prior auth, and renewals are typically every 90 days. We review expirations weekly and start renewals 30 days ahead. In the last 12 months, we had four auth gaps totaling under 0.5% of units, and all were corrected within the same month. If an auth is missing, scheduling is blocked for billable shifts until the authorization owner clears it.

Good answer

We track auths and usually renew on time. We have not kept clean stats on gaps or the dollar impact.

Red flag

Authorizations are the case managers’ job. We provide services and bill after.

How Rejigg helps:Rejigg’s guidance helps you document authorization controls and gap history so buyers can price recoupment risk with evidence.

How do you ensure documentation is complete and timely?

Deal-critical

Documentation & Audits

What buyers determine

Buyers are assessing the odds of recoupments, payment holds, or a billing freeze tied to documentation, EVV, signatures, and supervision requirements. They also want to know whether QA catches issues early or only after denials and audits. Prior findings matter most when you can show they stayed fixed over time.

How to prepare

Set note timeliness standards by program and monitor compliance weekly
Run an internal audit cadence with a defined sample size and correction deadlines
Summarize prior audits and surveys with findings, corrective actions, and follow-up proof
Map required sign-offs to the credentialed staff who are responsible

Great answer

Notes are due within 24 hours, and supervisors review within 72 hours. We run a weekly chart audit using a 10% sample per program, focused on signatures, units, EVV match, and required supervision. Corrections are completed within two business days. We had a payer audit last year with minor documentation findings. We retrained staff and added a checklist, and our pass rate has stayed above 95% since.

Good answer

We have expectations for notes, and supervisors review them. We do not have a consistent audit cadence or tracked pass rates.

Red flag

Staff handle documentation. If something is missing, billing fixes it later.

How Rejigg helps:Rejigg helps you share QA processes and audit summaries securely without emailing sensitive records back and forth.

How do you schedule, and what happens when someone calls off?

Deal-critical

Staffing Coverage

What buyers determine

In Social Services, staffing ties directly to revenue, client safety, and compliance. Missed shifts can trigger incidents, complaints, and lost authorizations, plus immediate billing loss. Buyers want to see a repeatable coverage plan with backup roles, not an owner-driven scramble.

How to prepare

Document required staffing ratios and how often you fall below them
Track open shifts, call-off rates, overtime, and time-to-fill by role
Identify roles that cannot go uncovered and create named backups
Write an escalation playbook for coverage failures and incident prevention

Great answer

We schedule two weeks out with an on-call rotation and a small float pool for call-offs. Last quarter, call-offs averaged 6% of scheduled shifts, and we filled 97% the same day. If we cannot fill a shift, the program manager covers, and we trigger our incident-prevention steps. Overtime averages 4.5% of wages, and we review it weekly to limit burnout.

Good answer

We have a scheduler and usually find coverage. It is still manual, and overtime can spike in tough months.

Red flag

We do our best when someone calls off. Sometimes, we run short.

How Rejigg helps:Rejigg helps you present org coverage and staffing KPIs so buyers can price staffing risk based on facts.

Do you use EVV, and what are your most common EVV problems?

Important

EVV & Systems

What buyers determine

EVV is a gate to getting paid for many home- and community-based services. Buyers want to see how exceptions are handled, who can override them, and whether EVV ties cleanly into the EHR (Electronic Health Record) and billing workflow. They also look for exception backlogs that quietly turn into unbilled units or denials.

How to prepare

List your EVV, EHR, and billing tools and how data moves between them
Track exception types, volumes, and override rules with named approvers
Document major system changes and how you managed the transition
Produce a weekly report for missed EVV, unsigned notes, and unbilled units

Great answer

We use EVV for all HCBS visits. Exceptions run about 2% to 3% of visits, mostly GPS drift and client location changes. Our EVV coordinator reviews exceptions daily, and overrides require supporting notes. EVV feeds into our EHR and billing, and we run a weekly report that ties EVV completion to unbilled units so issues do not sit for weeks.

Good answer

We use EVV and can describe the common issues. We do not track exception rates consistently or connect EVV exceptions to billing leakage.

Red flag

EVV is unreliable. We override it when we have to.

How Rejigg helps:Rejigg centralizes system documentation and exception summaries so buyers can review your EVV controls quickly.

How do you track incidents and reportable events, and what trends have you seen?

Important

Incidents & Quality

What buyers determine

Buyers expect incidents in residential and community-based programs. They want to see fast reporting, consistent investigation, and changes that reduce repeat events. Trend reporting and closed corrective actions also protect the license and make referral partners more comfortable.

How to prepare

Summarize incident categories, frequency, and resolution time by program
Document your workflow from report to investigation to corrective action and follow-up
Compile survey and audit history with findings and proof of sustained correction
Track leading indicators weekly like missed visits, med errors, and staffing ratio breaches

Great answer

We log incidents within 24 hours, investigate within 72 hours, and review trends monthly in QA. The most common issues are missed visits and transportation problems, and both declined after we adjusted scheduling coverage and retrained documentation steps. We had a corrective action plan two years ago, closed it on time, and the same finding has not shown up again in later reviews.

Good answer

We keep incident logs and respond as things happen. Trend reporting and closed-loop documentation are less structured than we want.

Red flag

Incidents are rare, and we do not track them closely. We handle them case by case.

How Rejigg helps:Rejigg lets you share incident and QA summaries in a controlled way that builds buyer confidence without exposing sensitive details.

Where do referrals come from, and what relationships actually drive them?

Good to have

Referral Transfer

What buyers determine

Buyers want to know whether referrals come from systems and performance or from the owner’s personal relationships. They will also look at intake speed, acceptance criteria, and service start times because that’s what county boards, discharge planners, and schools notice. For residential settings, they often care most about vacancy drivers and how quickly beds refill.

How to prepare

Map referral sources by program and document why each source sends clients to you
Track intake speed, time-to-start, acceptance rate, and top reasons you decline
Assign relationship owners beyond the founder and plan introductions after close
Document occupancy and vacancy drivers if you run residential programs

Great answer

Referrals are 45% county boards, 30% hospital discharge planners, 15% schools, and 10% other community partners. Intake contacts within one business day, and we typically start services in 7 to 10 days. Those response times help us keep referrals for higher-acuity cases. Relationships are shared across leadership, and we have a 60-day introduction plan post-close led by our program director and intake lead.

Good answer

We know our main referral sources and have strong relationships. We do not track intake speed consistently or have a detailed relationship handoff plan.

Red flag

Referrals are mostly word of mouth. People know us.

How Rejigg helps:Rejigg helps you reach buyers who understand county boards, MCO expectations, and referral partner handoffs, with fewer back-and-forth requests.

Straight from buyer evaluations

“Over a hundred agencies using the platform every day, with caregivers logging notes around the clock. Once providers build their workflows around your system, they don't want to switch. That kind of adoption took years to build.”

Platform AdoptionBuyer evaluating a documentation platform for disability service providers

“Electronic documentation is becoming required by the state, which means every provider still using paper will eventually need a solution like this. That built-in demand, combined with how loyal the existing customers are, made this a standout opportunity.”

Regulatory TailwindBuyer analyzing a social services technology company's growth potential

“They built real relationships across dozens of counties, meeting with providers one by one. That kind of trust with the local community is something you can't shortcut, and it shows in their renewal rates.”

Provider RelationshipsBuyer reviewing a social services company's client acquisition history

“I was excited about the reimbursement rate increase coming through. The state is raising rates, and this company will benefit across every bed and every billable hour without adding staff. More revenue without more cost.”

Reimbursement UpsideBuyer evaluating a residential care operation ahead of a state rate increase

“Ten years running group homes with strong state reviews and a director who built real quality-of-care standards from scratch. That track record with regulators is the kind of foundation I want to build on.”

Compliance Track RecordBuyer reviewing a residential social services provider's compliance history

How buyers value this type of business

Where you land in that range depends on whether your revenue comes from government contracts or Medicaid reimbursements, how clean your compliance record is, and how much the operation runs without you on-site.

2x–8x

annual profit

Depending on contracts, compliance track record, and team

What drives a premium

Government contracts with years left on them
Active contracts that still have time remaining give buyers confidence that revenue will keep coming in after the sale.
A clean compliance record
Good state reviews and organized documentation show buyers that the business is well-run and won't come with regulatory surprises.
Staff who stick around
Low turnover among your caregivers and support professionals means the business has stable capacity and the new owner won't have to constantly hire.
Revenue from multiple sources
When your income comes from different agencies, counties, or programs, losing one contract doesn't sink the business.

Common add-backs

Your salary above what you'd pay a program directorOne-time COVID relief payments that inflated earnings temporarilyFamily members on payroll who won't stay after the saleRent you pay yourself if you own the buildings used for services

What the process looks like

5–8 months from listing to closemedian 201 days across closed deals

1
Listing
The day your business goes live on Rejigg.
2
First messageMedian: 4 days later
A buyer requests a conversation by sending a first pitch.
3
First callMedian: 7 days later
Your first completed call with a buyer to answer questions about your business.
4
Letter of intentMedian: 59 days later
A buyer submits an LOI and you choose to accept, decline, or negotiate.
5
Deal closeMedian: 89 days later
Assuming all is well in due diligence, you close the deal.

See the data behind this timeline in the 2026 Insight Report

Typical buyer types

People already running group homes or day programs looking to expand into nearby areasCompanies building a group of care providers across different service linesFirst-time buyers with healthcare or nonprofit experience who like the stability of government-backed revenueGovernment contractors looking to add social services to their offerings

Common questions about selling a Social Services business

What is a social services agency typically worth?

Most Social Services agencies sell on a multiple of SDE or EBITDA, with price driven by reimbursement reliability and compliance risk. Buyers usually focus on payer mix, denial rates, authorization controls, documentation quality, and the chance of a licensing or enrollment disruption after closing. Residential and group home operators can price differently based on occupancy history and whether real estate is included. For a starting point, use Rejigg’s <a href="/valuation" style="color: #1d4d05; font-weight: 600;">free valuation calculator</a>, then adjust for payer concentration and any reliance on one credentialed leader.

Can a buyer use an SBA loan to buy a social services business?

Often, yes. SBA 7(a) loans are used for provider agency acquisitions, but lenders usually dig deeper because reimbursement can lag, and compliance issues can interrupt billing. Expect questions about payer enrollment continuity, licensing timelines, denial trends, EVV controls, and whether documentation supports collections. It also varies by market and payer mix, especially for agencies concentrated in one MCO or waiver. Use Rejigg’s <a href="/sba-calculator" style="color: #1d4d05; font-weight: 600;">SBA loan calculator</a> to model debt service and down payment scenarios before you negotiate terms.

How long does it take to sell a social services agency?

Many sales land in the 4- to 9-month range, but Social Services often runs longer because licensing, payer enrollment, and change-of-control approvals take calendar time. Residential programs can add extra weeks if surveys or site visits are required. Timelines improve when you have a diligence-ready package that includes payer mix, billing-cycle metrics, incident and survey history, staffing KPIs, and a change-of-control checklist. Rejigg helps you keep diligence organized in one data room so deals don’t stall at the “send me everything” step.

Do I need a broker to sell my social services business?

No. Brokers can help with outreach and process, but many owners sell on their own if they can run an organized diligence process. In Social Services, buyers mainly want clear proof around billing permissions, staffing coverage, and compliance controls, and those have to come from your operations. Rejigg provides seller tools that replace a lot of broker infrastructure, including buyer access, NDAs, a secure data room, and offer tracking. A broker can still be worth it if you need hands-on outreach or negotiation support.

How do buyers handle working capital for social services deals with reimbursement lag?

Buyers usually model working capital to cover payroll while claims move through documentation, submission, and payer processing, especially with Medicaid managed care. Many deals set a working-capital target at closing or include a post-close true-up tied to AR, AP, and the payroll cycle. Sellers who can show days-to-cash by payer, days-to-bill, and denial rates often see less “buffer” built into the offer. Rejigg helps you compare offers where the real difference is working capital, holdbacks, or timing rather than headline price.

How is accounts receivable treated in a social services agency sale?

It depends on structure and payer profile. Because reimbursement is delayed and denials or recoupments can change collectability, AR is often negotiated through a true-up, an exclusion for older aging buckets, or specific reps about documentation support. Buyers commonly ask for AR aging by payer and proof that high balances have clean auth, EVV, and signatures behind them. The cleanest approach is to label risk buckets up front and show your denial and fix history. Rejigg’s data room makes it easier to share AR support schedules securely.

What documents should I have ready before due diligence starts?

Most buyers will ask for financial statements and tax returns, payer contracts and provider agreements, licenses and survey history, incident summaries, an org chart and credential roster, billing workflow metrics and denial trends, authorization tracking, and your EVV/EHR/billing system overview. Residential programs often add occupancy history, discharge patterns, and facility approvals. Rejigg’s <a href="/owners/owners-guide/due-diligence-and-closing" style="color: #1d4d05; font-weight: 600;">due diligence checklist</a> helps you assemble this once and control access as buyers get serious.

How do I think about earnouts in social services M&A?

Earnouts show up when revenue depends on post-close continuity, like staffing retention, payer recredentialing, licensing milestones, or key referral relationships. In Social Services, performance can swing for reasons outside either party’s control, including policy changes, authorization delays, and workforce shortages. If you consider an earnout, define the metric carefully and make sure it matches what you can influence, such as collections rules and denial handling. Rejigg’s offer comparison tools help you weigh an earnout-heavy offer against a simpler cash-close deal.

What are common deal structures for social services agencies?

Asset purchases and equity purchases are both common, and seller notes show up often when lenders discount cash flow due to reimbursement lag. Structure also depends on licensing and enrollment rules. Some buyers keep the entity intact to reduce billing disruption, while others need approvals that make a transition unavoidable. Holdbacks and escrows are also common when there is perceived audit or recoupment exposure. Rejigg’s deal dashboard helps you compare structure, seller financing, holdbacks, and closing timelines across offers.

How do change-of-control clauses affect county, school, or managed care agreements?

In Social Services, these agreements often function like operating permissions. Many require notice, approval, or recredentialing when ownership changes, and some allow payment suspension during investigations or serious compliance issues. The real risk is a delay in referrals, admissions, or billing while approvals catch up. Build a transfer checklist by revenue stream with the exact notice requirement, approval steps, and realistic timelines. Rejigg’s data room lets you share the relevant excerpts under NDA so buyers can underwrite the risk accurately.

What happens if a key clinician or program director leaves during a sale?

Buyers worry because a credentialed leader can be tied to supervision requirements, plan approvals, or payer expectations. One departure can slow billing, trigger ratio issues, or raise licensing questions, depending on your program model and state rules. Strong sellers show redundancy: who can sign, who can supervise, and how fast you can recruit and credential a replacement. Retention bonuses or employment agreements are common for key leaders during a transition. Rejigg helps you keep these commitments tracked and share an org and credential map securely.

How do taxes typically work when selling a social services business?

Taxes depend on entity type and deal structure, including whether it’s an asset sale or equity sale and whether you are an LLC, S-corp, or C-corp. Purchase price allocation also matters, and Social Services agencies often have more goodwill than hard assets, which can shift the after-tax outcome. If you have real estate tied to a licensed location, that can add another layer. A CPA should model scenarios before you sign an LOI. Rejigg helps you keep terms and allocations organized so advisors can review efficiently.

What transition timeline do buyers expect after closing?

Most buyers expect 30 to 90 days of active transition, and longer is common if the owner holds key payer relationships or operational know-how. In Social Services, transition work often includes payer and licensor contacts, escalation for incidents, and handoff of who approves clinical documents and supervision. A staged introduction plan to county boards, discharge planners, and MCO contacts often matters more than the general “training.” Rejigg’s <a href="/owners/owners-guide/transitioning-after-the-sale" style="color: #1d4d05; font-weight: 600;">transition planning guide</a> helps you set roles, decision rights, and milestones.

How do buyers think about compliance risk and potential recoupments?

Buyers look for indicators they can verify. Common ones include note timeliness, EVV exception rates and override rules, authorization lapse history, internal audit cadence, and prior survey findings with proof the fix held. If the risk is unclear, buyers may push for holdbacks, escrow, or tighter reps and warranties. Your best protection is a clear, documented workflow and trend data that matches collections. Rejigg’s secure data room helps you share policies, training proof, and QA summaries with vetted buyers while keeping control of sensitive materials.

Should I sell my facility or real estate with my residential program?

It depends on how your license is tied to the address and what the buyer needs for continuity. Keeping the real estate can create steady rent income, but it also adds maintenance, inspection coordination, and financing complexity. Selling the property with the program can make approvals and occupancy planning simpler if the program is location-specific. Buyers will want details on zoning, any limits on admissions, and the condition of the facility. Rejigg helps you present both options and compare offers with and without real estate side by side.

How do I keep the sale confidential with staff, clients, and referral partners?

Confidentiality matters because rumors can lead to staff turnover and hesitation from county boards, discharge planners, and families. Most sellers use a staged plan. They limit disclosure to a small leadership group until an LOI is signed, then expand communication when licensing or contract notice requirements force it. Rejigg requires buyers to sign NDAs before viewing sensitive materials, and you can control document access in the data room. For planning, see <a href="/owners/owners-guide/find-your-dream-buyer" style="color: #1d4d05; font-weight: 600;">finding buyers guide</a>.

What are the most common reasons social services deals fall apart?

Deals most often break when buyers cannot get comfortable with continuity. The big issues are uncertainty about billing after close due to licensing or enrollment steps, weak documentation, EVV, or authorization controls that suggest recoupment risk, fragile staffing coverage with no backup plan, and unclear cash timing that forces unexpected working capital. Sellers can reduce this by sharing real metrics early and labeling risks clearly. Rejigg helps by organizing buyer access, NDAs, diligence materials, and offer tracking so problems surface early instead of at the finish.

When should I start preparing to sell my social services agency?

Six to twelve months is a common runway because many value drivers are operational and take time. Most sellers get the biggest lift by tightening documentation timeliness, reducing denials, building staffing redundancy, and mapping out change-of-control steps for licenses and payers. Even a focused 30-day push can help if you pull the right metrics and build a clean story for buyers. Use Rejigg’s <a href="/owners/owners-guide/prepare-to-sell-your-business" style="color: #1d4d05; font-weight: 600;">prepare to sell guide</a>, then assemble your diligence package in the data room once.

How do I sell my social services business?

What is my social services business worth?

Most social services businesses sell for 2 to 8 times annual profit. Where you land depends on the length of your contracts, your compliance history, staff retention, and whether the business runs without you on-site every day. Try <a href="/" style="color: #1d4d05; font-weight: 600;">Rejigg</a>'s <a href="/valuation" style="color: #1d4d05; font-weight: 600;">free valuation calculator</a> for a starting estimate.

How long does it take to sell a social services business?

Do I need a broker to sell my social services business?

No. Brokers typically charge 5 to 10 percent of the sale price. <a href="/" style="color: #1d4d05; font-weight: 600;">Rejigg</a> gives you buyer vetting, secure document sharing, and direct messaging so you can handle the process yourself. <a href="/owners/schedule-consultation-call" style="color: #1d4d05; font-weight: 600;">Schedule a free consultation</a> to see how it works for regulated businesses like yours.

What do buyers look for in a social services business?

Do licenses and certifications transfer when I sell my social services business?

It depends on your state and how the deal is structured. Some deal structures let the buyer keep your existing licenses, while others require a new application, which can take time. Certain certifications may not carry over if the buyer doesn't independently qualify. <a href="/owners/schedule-consultation-call" style="color: #1d4d05; font-weight: 600;">Talk to Rejigg</a> about structuring your deal to protect these assets.

How do government contracts affect the sale of a social services business?

Will my caregivers and staff stay after I sell my social services company?

In most successful deals, yes. Buyers want your team to stay because they're the ones providing the care and maintaining the relationships with clients and families. There will be conversations about keeping pay the same and possibly offering bonuses to key staff during the transition. Having a simple retention plan ready shows buyers the team is stable. <a href="/owners/schedule-consultation-call" style="color: #1d4d05; font-weight: 600;">Talk to Rejigg</a> about transition planning.

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