Selling a nursing home or assisted living facility can be an overwhelming and stressful thought for many owners. Concerns about confidentiality and questions regarding value and process sometimes drives owners to avoid the entire topic for as long as they can. Most owners are focused on running their business and are not actively plugged in to the market on a national level. For this reason, it makes a lot of sense to talk to a trustworthy senior housing broker from a reputable company when even considering the option of selling.
It’s what we don’t know that makes us nervous. Having an expert in the acquisitions market as a team member early on is a great way to compare your options. A good broker will not require a commitment and can help identify the best strategy, even if it’s not selling. By knowing what the market is willing to pay, an owner can decide whether it makes sense to sell or refinance, to make changes to the property or management, and the best timing for a sale as it relates to the market and property’s performance. The key is finding a broker who prioritizes the relationship over a possible transaction.
Every facility and owner is different, so there’s not a one size fits all approach to marketing and selling. In the event that an owner decides it is time to sell, it also become critical to find a broker that can provide sufficient exposure while maintaining confidentiality. A high success rate should also be important. The bottom line is, finding the right advisor is absolutely worth it. Sellers who don’t have a strategy and simply sell to an off market solicitation frequently leave money on the table.
The timing of a sale can be a very personal decision, particularly for local owner/operators. Many decide to sell when considering retirement or are faced with change. However, it is important to have a plan and to go to market with a stabilized, profitable asset if a seller wishes maximize their return on investment. Having sufficient financials that show a profit is much more convincing than a pro forma of a facility’s potential. Having a planned exit strategy based on market conditions and property performance puts the seller in the driver seat.
Senturian Senior Housing Brokerage
Watson McCollister founded Senturian Senior Housing Brokerage in 2007 and has specialized in representing sellers of independent living, assisted living and skilled nursing facilities ever since. The company focuses primarily on the Southeast and Midwest. Watson has experience working with not-for-profit owners, estates, receiverships, bankruptcy deals, municipalities and private owners selling for all kinds of reasons.