What happens when you love the residents but no longer want to deal with the challenges of ownership? The owner of a 27-bed community-based residential facility (CBRF) in the Milwaukee suburbs loved senior care. But, dealing with the day-to-day headaches of owning the business was exhausting. She wanted to move onto the next chapter of her life.
Having never sold a CBRF, the owner didn’t know where to start. She needed someone by her side, guiding her through the process. She reached out to Senior Care Realty and Mark Van Den Broeke.
Questions About Selling an Assisted Living Facility…and Answers
The seller had a lot of questions. Plus, she needed Mark to help her get the business “market ready” and keep it that way. Mark provided personalized advice, support and guidance at every step. Before joining Senior Care Realty, Mark (like others on their team) managed senior-care facilities. So, he understands the hardships and challenges of facility operations. And, he uses his background to help others navigate those challenges while selling.
Early on, Mark and the team at Senior Care Realty sat down with the seller to review the business’ financials. To maximize the potential value, it’s important for the financials to be trending up. And, if the financial trends aren’t favorable, they need to paint a picture of potential.
During the review, Mark suggested ways to improve the facility’s overtime levels. (Nationwide staffing shortages make this a common area of focus.) He also identified needed renovation projects that might hurt the perceived value. As a result, the seller offered a credit covering needed repairs to the building’s roof. And, an air-conditioning unit past its useful life was replaced.
Now, even after finding a buyer, there’s always a new challenge to overcome in every sale. This sale proved to be no different. The seller recently had a perfect survey. But, due to a clerical error, there was a citation on the license. The citation was holding up the new licensing process. Even though this is not a normal situation, Mark knew exactly who to call at the State level to clear up the issue. After working on so many transactions, one gets to know the key players very well.
As in some transactions, the seller stays on for a period of time to help with the transition. During a conversation, Mark discovered the seller wasn’t sure what she wanted to do after the sale. Turns out, this sale was also the interested buying group’s first senior-care facility. They wanted to enter the industry and needed someone to help them learn.
A Win-Win Solution
Knowing the seller’s situation and the buyer’s learning curve, Mark surfaced an idea. He suggested offering the buyers an extended transition period. The seller agreed and offered to stay on as the administrator for a year. In fact, after getting to know the buyers, she agreed to stay on as an employee. It was a win-win for both parties. The business and real estate sold for $1.3 million. The seller got to continue doing what she loves. And, the new buyers got the expertise they needed to help them succeed in a new industry.
To learn more details, reach out to Mark Van Den Broeke who served as the seller’s lead advisor. Reach him on his cell at (612) 419-8084. Call his work phone at (608) 825-4200, ext.1007. Or, email him at email@example.com.
Thinking about selling an assisted living property or business? Contact the team at Senior Care Realty. We’d love to learn your story, understand your challenges, and explore how we can help. Call (608) 825-4200 or email firstname.lastname@example.org.