Selling your Assisted Living or Skilled Nursing Facility
When the time has come for you to sell your assisted living or skilled nursing facility, there are several things you should consider doing to prepare for the sale.
Take a hard look at the physical condition of your Assisted Living or Skilled Nursing Facility
The adage “the first 90 feet/first 90 seconds” should come to mind as you decide what improvements make the most sense. Chances are that a potential buyer has already visited several skilled nursing or assisted living facilities that are for sale and your facility can make a great first impression with a few low-cost upgrades. Improving the buyer’s first impression by giving the facility a good deep cleaning inside and out goes a long way and is relatively inexpensive. Painting cleans up scuffmarks and small imperfections inside and out.
Resealing and striping the parking spaces on the asphalt of the parking lot making it look new and smooth should be a serious contender. Look at your curbs. Is the red paint bright red or has it turned orange over the years? Making sure to keep landscape alive and attractive also adds to that first impression. Fertilize the lawns and make sure that everything is well watered and trimmed.
Don’t forget to make sure that all capital systems are in working order, plumbing, electrical as well as heating and air conditioning. The buyer will be checking on these systems during due diligence so having records on hand will help speed the process.
Preparing financial documents in an industry standard format is an important part of the process
As you begin the process preparing your assisted living or skilled nursing facility for sale, organizing the facility financials in an industry standard format becomes critical. We will help you with that. As buyers consider which assisted living or skilled nursing facility they want to purchase, being able to easily analyze your financials will put your assisted living or skilled nursing facility in the running. During the due diligence period buyers will ask for income and expense statements and balance sheets to be exported to standard programs like excel. Making sure that numbers are accurate and consistently in the same categories will help the buyer analyze the asset.
What documentation do you need to gather for a buyer of your assisted living or skilled nursing facility?
An important aspect of any sales transaction involving assisted living or skilled nursing facilities is the due diligence material. When formulating a plan to list your facility for sale you should also begin to assemble documents that a buyer will ask for. These items more than likely will include 3- 5 years of financials, utility bills, copies of permits and drawings, copies of all service contracts, such as elevator, gardening, pest control and your referral services. They will also need to review leases for things like dishwashers, copy machines etc. Buyers will also want to see Employment Packages and staff Policy and Procedure Manuals. Typically, they need to review the resident admission packages. Beginning to gather this information prior to the actual sale will make the sales process much easier.
Make your sale with the JCH team
For the past 20 years, the JCH Group has proudly served the senior housing community with unwavering dedication. Our expertise has created opportunities, navigated storms and solidified transactions for both small and large-scale senior housing investments including CCRCs, skilled nursing facilities, assisted living facilities and memory care facilities as well as other healthcare properties.
Get every dollar your property is worth. Discover what the JCH experts can do for you. Contact one of our investment specialists for a no cost consultation. Jim Hazzard , [email protected] 714-463-1677 or Cindy Hazzard, [email protected] 714-463-1672.