Selling Your Assisted Living, Independent Living, or Long-Term Care Facility
Selling your assisted living, independent living, or long-term care facility can seem like an overwhelming prospect. Fortunately, with the right senior housing and nursing home broker to assist you through the process, you can ensure a fast, smooth sale. At Evans Senior Investments, we provide the guidance you need to sell your assisted living facility for the highest return with the least possible difficulty. To pave the way for a smooth sales process, we offer the following suggestions.
List Your Long-Term Care Facility for Sale Confidentially
A confidential sale is a crucial component of a smooth residential care facility sale, ensuring your business’ stability. Choose a skilled nursing home and senior housing brokerage that knows what this means and utilizes responsible sales practices. It is essential to avoid email, direct mail, public website listings, and other mass marketing tactics to uphold confidentiality. The best firms will match you discreetly and directly with qualified buyers, reaching out via personal call and implementing confidentiality agreements to facilitate an entirely confidential sales process.
Maintain Consistent Occupancy and Rental Rates
Ensure consistent occupancy and market rental rates for your Illinois or Colorado area independent living facility, keeping monthly occupancy rate and rental revenue records. Include unit descriptions and rates, delineating base rent charges from value-added service charges in
your report. The ability to showcase steady increases in assisted living facility rental rates makes your residential care facility more attractive to potential buyers.
Carefully Manage Senior Care Facility Expenditures
Plan your sales strategy before listing. Normalize operating expenses with the goal of achieving margins around 35%. Net operating income is the single most important factor to the sale you can control, directly impacting housing valuations. Cut costs without sacrificing quality, avoiding severe reductions in food, payroll, and marketing expenses, which serve as a red flag to buyers regarding your business’ viability. Make all records accessible, clear, and easy to follow. Clean financial records that your tax returns can verify are essential. If buyers are required to put puzzle pieces together, they may walk away from a sale.
Defer Capital Expenditures
Defer capital expenditures. It's best to avoid investing in new technology, real estate, or other upgrades for future use at this juncture. However, repair and maintenance upgrades such as a new roof, HVAC equipment, or transportation are essential. These increase your skilled nursing facility's curb appeal while ensuring a stable cash flow scenario for buyers, helping you achieve the best possible sales price.
Consider Your Tax Strategy
Think beyond the sale, considering your tax strategy before you list. To mitigate the impact of taxes post-sale, consider the net effect on your business and personal taxes as well as potential investment implications, evaluating different sales scenarios.
Get the Help You Need to Ensure a Smooth Assisted Living Facility Sales Process
Selling your independent living facility is about more than finding a buyer. Evans Senior Investments ensures a smooth process from listing to closing. Our skilled nursing home and senior housing brokerage firm knows how to valuate your long-term care facility properly and market it confidentially. We're here through the entire transaction, from contract negotiation to closing and management transition, as well as to assist you with tax strategies to manage proceeds from the sales of your assets.
Avoid a reactive assisted living facility sales experience. Plan for success when selling your assisted living, independent living, or long-term care facility. Contact Evans Senior Investments at 312-896-0123 to schedule a consultation or market valuation today. We serve owners of assisted living, memory care, independent living, or skilled nursing communities across the US, including Illinois, Texas, Michigan, Pennsylvania, Ohio, Minnesota, Utah, Georgia, Kansas, Wisconsin & New York.