What do buyers look for when buying an assisted living facility?
Direct answer
Buyers look for reliable income they can keep: steady or rising occupancy, a strong private-pay mix, reasonable staffing costs, a clean state survey history and a well-maintained building. They also check how much of the income depends on the current owner, because work the owner does personally will have to be replaced after closing.
What to know
Occupancy and its 12-month trend come first. Communities at 85% or higher command better pricing, while occupancy under 75% leads to steep discounts.
Payor mix and rates matter next. Private-pay residents usually support stronger margins than heavy Medicaid dependence.
Staffing is the biggest expense, typically 50% to 70% of operating costs, so buyers look at wages, turnover and agency use.
Regulatory history is a deal-breaker risk. Expect buyers to read 3 years of surveys and plans of correction.
Clean books win. Organized P&Ls, rent rolls and census reports reduce re-trading during due diligence.
How Haven helps
Haven helps sellers prepare for exactly what buyers will review, well before the community goes to market. Read our tips for selling.