How to Buy an Existing Assisted Living Business: The Ultimate Guide
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Buying an existing assisted living facility (ALF) is one of the fastest ways to break into the senior care industry. Instead of starting from scratch, you step into an operational business with residents, staff, and revenue already in place. But how do you actually buy an assisted living business the right way?
In this guide, I’ll walk you through my 5-phase process to help you confidently acquire and operate a successful ALF.
Let’s dive in! ๐
Check out this video, too;
Phase 1: Find the Right Facility ๐๐ก
The first step is finding a business for sale. Here’s how to start your search:
๐ Online Listings – Websites like BizBuySell, LoopNet, Crexi, and local broker sites often list ALFs for sale.
๐ Networking – Connect with real estate agents, business brokers, and other ALF owners to find off-market deals.
๐ Direct Outreach – Identify struggling facilities and reach out to the owners to see if they’re open to selling.
When evaluating a property, focus on:
โ๏ธ Location & market demand
โ๏ธ Current occupancy rates
โ๏ธ Financial performance & expenses
โ๏ธ Condition of the property
Once you find a promising facility, it’s time to analyze the numbers.
Phase 2: Underwriting & Due Diligence ๐๐ฐ
Before making an offer, you need to understand the financials of the business. This is where underwriting comes in.
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Review the profit & loss statements – Look at revenue, expenses, and net income over the past 2-3 years.
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Calculate break-even occupancy – How many residents do you need to be profitable?
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Inspect the property – Get a licensed inspector to check for repairs and compliance issues.
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Evaluate staff & contracts – Are the employees staying? Are there any long-term vendor contracts in place?
Phase 3: Secure Funding ๐ต๐ฆ
Most buyers use a mix of financing options, including:
๐ฐ SBA Loans – Government-backed loans with low down payments.
๐ฐ Conventional Business Loans – Offered by banks and credit unions.
๐ฐ Seller Financing – Some sellers allow you to pay in installments.
๐ฐ Private Investors – Raising capital from individuals or investment groups.
If you need help structuring your deal, my FREE Underwriting Calculator (available inside my courses) can help you run the numbers.
Phase 4: Obtain Licensing & Approvals ๐๏ธโ
Once your funding is secured, you need to get licensed to take over the business. Each state has different regulations, so:
๐น Find your state’s licensing agency – It could be under the Department of Health, Human Services, or another agency.
๐น Apply for a Change of Ownership (CHOW) license – This ensures a smooth transition of the facility’s license to you.
๐น Update policies & procedures – You may need to revise manuals to meet compliance.
If you plan to accept Medicaid residents, you’ll also need state certification, which can take a few weeks to a few months.
Phase 5: Take Over Operations & Grow ๐๐ก
Congrats! You’ve closed on your new ALF! ๐ But now the real work begins.
Here’s what you need to focus on immediately:
๐ฅ Staff Management – Meet with employees, establish trust, and address any concerns.
๐ Resident Care – Ensure seamless care for existing residents while preparing to fill vacancies.
๐ป Systems & Software – Implement operational tools to streamline scheduling, billing, and compliance.
๐ข Marketing & Growth – Create a strategy to increase occupancy and profitability.
Taking over operations can be overwhelming, but with the right systems in place, you can turn your facility into a thriving business.
Final Thoughts: Is Buying an ALF Right for You? ๐ค๐ก
Buying an assisted living facility is one of the fastest ways to enter the industry. It eliminates the time and risk of starting from scratch. However, it’s crucial to do your due diligence and make sure the deal makes financial sense.
If you’re ready to take action, I’ve got all the tools and coaching you need to succeed! โฌ๏ธ
Next Steps: Take Action Today!
๐ Want to launch your assisted living business in the next 12 months?
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Step 1: Download the Business Plan Checklist to start planning.
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Step 2: Apply for the Assisted Living Investing Mastermind for expert coaching.
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Step 3: Follow this guide, take action, and bring your vision to life!
Got questions? Drop them in the comments below! โฌ๏ธ
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