Healthcare, Education & Personal Services · Buyer guide
Buying an Assisted Living & Senior Care Facility business
Published · Reviewed by The Diligence Standard Team · Updated
an Assisted Living & Senior Care Facility can look attractive on a summary P&L while the operating details underneath it change the cash flow, transferability and capital a buyer will actually own. Diligence should connect the reported earnings to the business-specific drivers that create them.
How the business works
Occupancy, resident rates, staffing, licensing, acuity mix, property condition and referral sources determine value.
Risks to test
- Licensing/compliance
- Staffing shortage
- Property CapEx
- Resident acuity mismatch
- Referral concentration
- Insurance/liability
Evidence to request and reconcile
- Occupancy/resident roster
- Rate history
- Payroll
- Licenses/inspections
- Property/CapEx
- Referral data
Decision questions
- What compliance findings exist?
- What staffing level is required?
- What CapEx is coming?
- How stable is occupancy?
- Who manages referrals/operations?