How to create a succession plan for a family-owned assisted living business
Direct answer
Start three to five years out, put a contingency plan in place now, and separate who owns the business from who runs it. Then choose a path: family transfer, sale to managers or employees, an outside sale, a partial sale, or keeping the real estate and leasing it to the operator.
What to know
The ownership-versus-operations split is the foundation. A family member may inherit the real estate without wanting to run the community, and an outside operator may want the business without the building. Deciding these separately keeps family and business questions from tangling.
Each path has different mechanics. A family transfer needs governance and fairness planning. A sale to managers or employees, including ESOPs for larger operators, needs financing. An outside sale runs through the confidential marketing process and typically closes in 90 to 150 days including due diligence, plus change-of-ownership licensing of commonly 90 to 180 days. Keeping the real estate and leasing it to the operator preserves family income without operations.
Whatever path you choose, document financials, licensing status and survey history early, because any successor, family or buyer, will need them.
How Haven helps
Haven advises family owners on valuation and exit options, from an outright confidential sale to a real-estate-only structure. Read our succession planning guide.
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