What due diligence is needed to buy an assisted living facility?
Direct answer
Due diligence on an assisted living facility covers financial, operational, regulatory, physical, legal and market reviews, usually over 30 to 90 days. The goal is to confirm the income you're paying for, find risks the seller didn't disclose, and make sure the new operator can be licensed on schedule.
What to know
Financial: trailing-12-month and historical P&Ls, rent roll, census history, payor mix, accounts receivable aging and payroll.
Operational: staffing levels, wages, turnover, agency use and management depth.
Regulatory: current licenses, 3 years of state surveys, deficiencies and plans of correction.
Physical: a property inspection, life-safety systems and deferred maintenance.
Legal and market: contracts, leases, any litigation, competition and new supply nearby.
How Haven helps
Haven supports buyers through due diligence and the change-of-ownership process. Use our multi-state senior housing due diligence checklist.