Admittedly the search for buying a business can be quite a daunting task.
I have seen too many times when a Buyer who had "all the right stuff" backed off from their search because they got so overwhelmed with the process.
In an effort to make the search as "painless" as possible, I would like to offer 5 simple questions a Buyer can ask of the Seller or Broker of a Care Home to determine whether the Care Home is right for you or not.
1. How long has the care home been in business? Why do the Sellers want to sell? Understanding motivation is key!
2. What is the average length of stay of your Residents? Knowing how long a Resident typically stays will tell you how well the home is being operated and what the likelihood is of the home continuing on in this fashion.
3. How much did the facility pay in placement fees last year? Knowing placement fee charges will quickly tell you what the occupancy ratio is. Then you can run the math and know if the business is truly profitable or not.
4. Does the home have any active violations and are the violations type A or B violations?
5. Have you had any issues with the Department of Labor?
Of course there are a multitude of other questions to ask and information to gather, but starting with the basics will quickly give you an idea as to whether the business you are touring is the right one for you.