Selling your nursing home is not a task you do every day. It is your business, a passion to you, which you now want to sell. As an owner, the biggest challenge is to find a credible and genuine buyer who will run your nursing home as you would. It is also hard to find someone who can afford to buy your nursing home.
The health care sector is a growing industry.
With nursing homes, people expect the best care and support from professionals. Unfortunately, they only care about ownership when something is wrong. All that matters to them is the service their family member will receive there. With an increasing rate of populations living longer, nursing homes are becoming a necessary part for those with long lives but failing health. The elderly population aged 65 and over is growing faster than all other age groups. The World Population Prospects states by 2050, 1 in every 6 people in the world will be over age 65 (16%), up from 1 in 11 in 2019 (9%).
So now that you are on familiar terms with the people who will be in your nursing home to receive care, you need a buyer who would pay cautious attention to the standards. You want to find someone who will offer the same or better care than you. I often see newspapers and TV channels reporting on complaints about negligent caregiving homes. You want to make sure the next owner never falls into that category when you market your healthcare business.
The market should not know that your nursing home is up for sale.
Being a nursing home, accepted promotional activities and advertisements for selling real estate don’t work here. It’s always a good idea to get help from a nursing home broker who would help promote the sale and settle with the legal, professional and market accepted regulations. Consider talking to a lawyer and an accountant when you are ready to sell your nursing home. It is only a professional who will understand the legal and accounting impacts of your sale. They would find you the best ways to prepare for tax impacts, fight the legal battle, work on the contracts and employee rights even when the ownership changes.
Protect Your Staff
A nursing home is like the second home for those who work there for years. Management, nurses, nursing assistants, cooks, housekeeping, all the employees, and staff are there who stood loyal to your nursing home to reach its pinnacle. While employers in different industries adhere to different leadership techniques for imparting change within the organization; as a responsible employer, you should first share all the information when the time is right. This would help employees feel comfortable with the new owner. As we are talking about staff, the seller will review staff contracts, payroll, their qualifications, and tenure to make sure everything is in order. It is important that you organize this information in advance. These small steps reduce buyer concerns when you are marketing your healthcare business.
Apart from this, you need to double check that you have covered the Five Points to Sell Your Nursing Home Faster.
The first point is census reports.
Census reports provide the official count of the total number of residents living in your facility. You will want to break down your reports by Medicare, Medicaid, Private Pay, Veteran Administration, and Other Payment Sources.
The second point will be the cost reports.
Cost reports comprise the characteristics and costs of the nursing home, the settlement data of Medicare and the financial statement of data. It is very important to gather this data as it makes up the backbone of a nursing home. These reports are very important when you want to market your healthcare business. Therefore, make sure you make them available.
The third point on your checklist is financial statements.
Financial statements show the financial activities of a skilled nursing facility. Although financial statements focus on four points, we will only mention one here, the income statement. We also call the income statement the profit-and-loss report (P&L report). It provides detailed information on a nursing home’s income, expenditure and profits.
The fourth point in your checklist should be the market.
Finding the potential buyer is a skill that few operators have. Identifying the market for your nursing home won’t be a cakewalk. The most important thing to keep in their mind is to allow the buyers to know who your target market is. By doing so, this will allow the potential buyers to decide if your facility is the right one to place an offer on.
The fifth point on your checklist will be your physical plant.
The physical plant is another name for your real estate. This will identify all the components associated with the maintenance, financing, and identification of your building and surrounding property. You want to make this available for your buyer to sell your nursing home.
Put It All Together
Now, as you have prepared your checklist, it is time to put your efforts to work. Gather the information required, follow the steps, and make notes of the market and potential buyers. To sum it up, to sell your nursing home, you must have all the documents ready with you. You can expect to get a call or a visit from the potential buyer. You must make sure you are complete in your research. Now you can sell your nursing home hassle-free.