Share This Info:  

Thinking Of Buying An Elderly Care Home? Tips To Remember When Buying

Share This Page   •   See All Discussions   •   See All Contributors   •   All New Discussions & Comments

Comments & Replies: 3     Views: 1698     Posted By: Broker/Consultant  

Are you thinking of buying into one of the fastest growing industries in California? Joel Miller a Senior Care Specialist covers this topic in his latest Discussion on BizBen. This Discussion covers: What to look for when touring a Care Home, how to proceed with pre and post due diligence issues.

Topics: Buying A Business     Tags: buying a business

Contributor: Broker/Consultant: Elderly Care Services

According to the Population Reference Bureau report, "The number of Americans ages 65 and older is projected to more than double from 46 million today to over 98 million by 2060, and the 65-and-older age groupís share of the total population will rise to nearly 24 percent from 15 percent."

Are you ready to buy your first Elderly Care Home?

Assuming you already have an interest in the Elderly Care Home industry and have a general idea as to what a care home is; here are some tips when looking at a care Home to purchase:

1) Use your senses.

a) How does the home or facility smell? Does the home smell of urine and fried food or roses and chocolate cake?

b) How does the facility look from the street? Is the facility nice and tidy or full of weeds and junk? First impression is everything in this industry.

2) Employees.

a) Do the Employees greet you at the door professionally and with authority or do they appear tired and disinterested?

b) Do the Employees protect their Residents privacy and watch over you carefully or give you free reign to tour the home as you wish?

3) Residents.

a) Now please be very careful here and do not disturb the Residents, but do the Residents look happy and content or are they in bed and unattended?

b) Are the Residents asking for help and fidgeting or relaxing in a big Lazyboy enjoying an old movie?

4) Books and records, Medication management and safety requirements

a) Unauthorized personnel are not allowed to view Residents and Employee files, but does the facility have all files nicely organized and presented in a professional manner?

b) Do you see fire extinguishers and an evacuation plan hanging on the wall along with emergency contacts?

c) Are the medications in a secure area, well organized and with appropriate forms for documentation?

d) Does the home appear to be Elderly friendly with hand rails, custom toilets and showers? How about ramps leading into or out of the home?

In addition to the above, check out:

5) What's the reputation of the facility?

a) A great resource for checking on a facility is the California Department of Social Services website. They offer a free site that provides basically a report card of all Care Facilities in California.

b) Call placement Agencies and see if they know of the facility and what is the reputation of the facility.

6) With permission from your Broker ask to speak with the Seller direct to find out why they are selling, what challenges they have had in the business and what they (the Seller) see as future growth opportunities.

7) How are the Employees paid? W-2 or 1099? This will affect your bottom line and exposure.

8) When was the last time Resident monthly charges were increased and for what reasons?

9) How long have the Employees been at the facility?

10) Any violations or troubles with Department of Labor?

With proper due diligence and business planning you can get off to the right start and enjoy a solid business within a growing industry.

An important factor to consider when buying a business very dependent on a building customized for a particular purpose is the enduring value of the underlying real estate, whether or not the business is successful or sustainable. A really good (and slightly out of context) example is a church.

The traditional steeple-and-bell-tower iconic church serves its purpose very well. But, when the congregation changes, grows larger, or grows smaller, that building needs to be sold. Just how "convertible" is the typical church to other purposes? That's why we see more and more small community churches built as generic warehouse or retail spaces with minor structural and decorative changes to serve the purpose of gathering and worship. This stratagem makes sense for at least two good reasons: financing and re-sale.

Financing is much easier to obtain because the lender can see the intrinsic value of the real estate separate and apart from the existing or planned "business" (i.e., a church) and, in the event of a foreclosure, they will find a multitude of potential buyers, not being limited to a religious organization. Similarly, because the building is "generic", the congregation can re-sell or lease out the premises at its highest and best commercial value as office, industrial, or commercial space.

The same principal applies to an assisted living facility. The buyer should very carefully review the real estate market, zoning requirements, and structural particulars to be sure that when it does come time to sell that, even if the business my no longer be viable (e.g., the market has evolved, insurance reimbursements have changed, lifestyles are different), the underlying real estate can be easily and inexpensively "re-purposed" and, therefore, re-sold at top value.

  Helpful Resources To Assist In Selling And Buying California Businesses

George Lanza, Business Broker, At Plethora Business Sales

Plethora Businesses, a division of A Premier In Services, Inc., is a Business Intermediary Consulting Firm headquartered in Orange, California. Plethora specializes in the listing and sale of small and medium sized private businesses.

Mani Singh, Business Broker, Southern California

I have successfully represented clients sell & acquire multitude of businesses ranging from Gas Stations, Liquor Stores, Markets, Super Markets, Smoke Shops, Postal Stores, Restaurants, General Retail, Auto and Construction related. Phone me for assistance with selling or buying at 951-296-7646 Cell

Jaime Ortega: Cannabis Industry Consulting & Due Diligence

We offer Cannabis Industry Consulting & Due Diligence Services to business buyers, owners, sellers, entrepreneurs throughout CA. We offer assistance with: licensing issues, cultivation facilities, products/ services, dispensaries, corporate strategy, & project management. Call 866-591-7802 for info.

Michael Davidson, Business Broker - Southern California

Los Angeles Business Broker providing M&A quality services for Small Business Owners. We leverage our technology and expertise to Simplify & Expedite the Business Sales Process. Matching the right buyer with the right business is how we define success.

Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance

For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.

Rick Carlson, Business Broker - Southern California

You Will Never Feel Lost In The Shuffle. Many Brokers Simply Send Out An NDA And That's The End Of Communication. All Buyers Receive A Personal Meeting With An Ace Acquisition Specialist So They Can Recommend The Perfect Business For You. Phone Rick direct at 800-985-4939.

Bob Baumgarten, Business Broker: Orange, LA Counties

National Business Brokerage is a full service brokerage company that has been serving buyers and sellers of Southern California businesses since 1994. We are dedicated to providing the highest standards of professional service for our clients. Phone Bob direct at 949-588-8727.

Chris Seaman, Business Broker - San Diego County Area

Founded in 1994, First Choice Business Brokers has accelerated to become one of the most successful Business Sales Organizations in the world. Our team of agents have gone through extensive training to become experts in the field of business brokerage. Call Chris at 858-578-4111 for more info.

  Related Articles, Events, Blog Posts, Discussions, Videos, Interviews

Cannabis Industry Consulting, Due Diligence Services - For Buyers, Start Ups

We offer Cannabis Industry Consulting & Due Diligence Services to business buyers, owners, sellers, entrepreneurs throughout CA. We offer assistance with: licensing issues, cultivation facilities, products/ services, dispensaries, corporate strategy, & project management. Call 866-591-7802 for info.

What Are The Prospects Of Cannabis Based Small Businesses And Industry In CA

Jaime Ortega (at 866-591-7802), a Cannabis Industry Consultant, Due Diligence Specialist and Advisor reviews the new Administration's view & California's new legislation that will affect both buyers and sellers in the California Cannabis industry. Read what factors will affect both buyers & sellers.

Webinar: CA Cannabis Industry Info And Overview: Buying, Selling, Starting

In this FREE on demand Webinar Jaime Ortega (at 866-591-7802) a Cannabis Industry Consultant, Due Diligence Provider, and Industry Advisor discusses different aspects of the cannabis industry and opportunities for buyers and entrepreneurs in this fast growing industry in California.

Thinking About Selling A Small Business? Know These 8 Factors That Matter

The likelihood of selling a business is often determined by external factors in the marketplace. Here are eight influences on how easy, or difficult it might be when selling a small California business. Peter Siegel at 866-270-6278 (BizBen ProSell Program) explains these factors for owner/sellers.

Going Behind A Brokers Back: How Does A Broker Protect Themself?

What are some ways a broker can prevent a buyer and seller from doing a deal behind their back and what to do about it if it happens? Joe Ranieri (Orange County Business Broker) discusses ways a business broker or agent can protect themselves from buyers and sellers trying to circumvent them.

Purchase A Business With Limited Or No Cash - Financing Tips For Buyers

Purchasing a business with no money down can be difficult, but not impossible. Financing a business purchase or down payment can often be accomplished with these strategies from Peter Siegel, MBA (Business Purchase Financing Expert, ProBuy & ProSell Program Advisor with BizBen) at 866-270-6278.

Mentoring In How To Buy A Business - Tips From Expert Willard Michlin, CPA

Willard Michlin, CPA a due diligence specialist shares his views on the mentoring process & about how buyers can "profit" from such a relationship when searching and buying a business. Mr. Michlin, CPA (800-864-0420) performs due-diligence services and and consulting services for business buyers.

Who Really Represents The Business Buyer In A Deal? Does Dual Agency Work?

Who really represents the buyer? The selling broker or agent through dual agency? Many brokers and agents weigh in on this Discussion on BizBen. Bottom line is all business buyers need to know who really represents them and has their best interest at heart when seeking and negotiating on deals.

See All News, Tips And Events

Business Purchase Financing SBA Loans
Cannabis Consulting Due Diligence Service
Southern California Legal Services For Buyers And Sellers
Willard Michlin Due Diligence Services

Auto Related
Business Services
Children Related
Communication Related
Computer, Internet Related
Construction Related
Entertainment Related
Financial Services
Health, Beauty Related
Home Improvement Related
Maintenance Related
Manufacturing Related
Media, Publishing Related
Pet Related
Photography/Video Related
Real Estate Services
Restaurant, Food Related
Retail Related
Service Related
Sports Related
Transportation Related
Travel Related
Wholesale Related

Auto Body Shops
Auto Repair Shops
Bars, Sports Bars
Cafe Restaurants
Car Washes
Cleaning Services
Clothing, Apparel Stores
Coffee Shops
Convenience Stores
Deli Restaurants
Discount, Dollar Stores
Dry Cleaners
eCommerce Websites
Fast Food Restaurants
Florists, Flower Shops
Full Service Restaurants
Gas Stations
Gift Shops
Gyms, Fitness Facilities
Home Health Agencies
Ice Cream Shops
Juice, Smoothie Shops
Liquor Stores
Markets, Marts
Pizza Restaurants
Postal, Shipping Stores
Preschools, Day Care
Print Shops
Salons, Beauty Shops
Sandwich Shops
Smog Test Only Shops
Smoke Shops
Spas, Med Spas
Sushi Restaurants
Tire Shops
Towing Services
Vending Routes
Wireless, Cellular Shops
Yogurt Shops

Contra Costa
Del Norte
El Dorado
Los Angeles
San Benito
San Bernardino
San Diego
San Francisco
San Joaquin
San Luis Obis
San Mateo
Santa Barbara
Santa Clara
Santa Cruz

0 to $99,999
$100,000 to $249,999
$250,000 to $499,999
$500,000 to $999,999
$1 million to $2 million
over $2 million

BizBen - Where California Deals Get Done! 888-212-4747
7172 Regional Street #364 · Dublin, CA. 94568
BizBen · Copyright © 1994 - 2017, All Rights Reserved

Sign Up Today - For Our FREE BizBen Weekly Email Newsletter
Includes The Best Info On Buying, Selling, Valuing, Financing California Businesses:
Articles, Blog Posts, Podcasts, Videos/Vlogs, Discussions, Q&A, Workshops, Webinars,
Resources. Watch For An Email Confirmation After Signing Up Above. Thank you.

Please confirm your registration by clicking the link we've sent to .

If you can't see it, please check your junk mail folder.

If you have any problems registering, or need assistance with your new BizBen User Account please phone BizBen Customer Support at 888-212-4747.

First Name:*
Last Name:*
Email Address:*
Confirm Email:*
Create Password:*
Confirm Password:*

You Are A:

Email Address:

500 New & Refreshed Detailed Postings Daily
Over 2500 Resources Available On BizBen
Since 1994. Where California Deals Get Done!
Webinar: CA Cannabis Industry Info And Overview: Buying, Selling, Starti...
Cannabis Industry Consulting, Due Diligence Services - For Buyers, Start...