DON’T TELL EVERYONE THAT YOU ARE SELLING
If you are selling your nursing home, make sure to keep your staff in the dark. Your CNAs & CMAs will start looking for jobs when they hear you have your facility on the market. Even though they are the lifeblood of your facility, they are still skittish about their jobs. You also don’t want your residents to know anything, specifically the family of the residents. They are fearful of the unknown and don’t realize that the sale includes real estate & operations. When you tell your friends & family, the word will spread. Eventually, your staff, residents, & their families will find out and your secret is blown.
You need to let a professional market your business with confidentiality agreements
DON’T LIST IT WITH A LOCAL REALTOR
Most realtors just sell homes. Commercial real estate brokers sell buildings. A Skilled Nursing Facility isn’t either of those. Your facility is a 24/7, secured, highly regulated operating post-acute healthcare facility. Realtors and commercial real estate brokers rarely understand how a retirement home runs, much less the regulations involved with a CHOW (Change of Ownership). Honestly, if you ask them what a CHOW is, they will think you are talking about food. You, your staff and your residents don’t want an amateur negatively impacting a smooth running healthcare operation. If they have never sold a nursing home, run like the plague.
“Work with someone who sells skilled nursing facilities”
DON’T USE JUST ANY LOCAL BANK
Most banks have limited experience with skilled nursing. They might be interested in assisted and independent living facilities, but nursing homes don’t appeal to them because lenders like certainty. If the buyer is using their local bank that has never funded a retirement home, expect a lengthy underwriting period and a loan rejection. Your ability to close will depend on the timeliness to deliver required documentation of your buyer and the experience of the lender.
“The bank is the real nursing home investor. ”
DON’T ASK YOUR ESTATE PLANNING ATTORNEY TO HANDLE THE SALE
Selling your nursing home requires a lot of legal documents. You will most likely have a Letter of Intent, Due Diligence, Purchase Sale Agreement, Operation Transfer Agreement, maybe a Management Agreement and Change of Ownership documentation. Your estate planning attorney is amazing as planning your estate, estate tax law, and maybe even entity preparation. If you have a good attorney, they will let you know if they have handled a nursing home transaction before. If they have not, have them recommend someone who has. Have you ever heard the saying that ‘Attorneys are Deal Killers?’ If they don’t know what they are doing, they are deal destroyers. To make it even worse, they are learning on your dime while you pay for the deal delay.
“Aim for success & get a referral who knows how to close”
DON’T LET YOUR REALTOR RECOMMEND A TITLE COMPANY
Don’t do it. If your realtor knows nothing about nursing homes, they won’t know if their favorite title company does either. Don’t fall for the line, ‘They Do Commercial!’ Skilled Nursing isn’t commercial real estate. The transaction process for the escrow, title and close of a nursing home differs from residential and commercial real estate. No different from your realtor, banker, and lawyer, use a title company with skilled nursing experience
“You will have a smoother close”
WHY TAKE THE CHANCE?
Pull together a team that has experience in skilled nursing and knows how to move your facility. A smooth transaction and your financial windfall awaits.
Don’t Do These Things
When Selling your Nursing Home
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