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

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Comments & Replies: 3     Views: 1520     Posted By: Joel Miller  

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



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

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.

Joel Miller, Broker Specialist, Elderly Care Services

Senior Care Services Specialist - Business Broker, Consultant, Due Diligence: Elderly Care Homes, Assisted Living Homes, Adult Residential Facilities, Hospice, Congregate Living, Independent Living, Care Services. Areas: San Diego County, Orange County, Inland Empire. Joel Miller at 619-866-4310.

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.

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.

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.

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.

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

Christina Lazuric, CBI, Business Broker - Orange County

California Business Brokers, one of Orange Counties top selling business brokerage. I sell successful businesses in the Orange County area. Professional Business Broker, both a Certified Business Broker & a Certified Business Intermediary. Call me for a free confidential evaluation - 949-257-7823.


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

Buying An Elderly Care Facility: Does The Location Really Matter For Buyers?

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What Is The Standard Escrow Time Period And Is That Even Important?

Escrow periods vary depending on type of business, licenses involved, and a host of other business for sale factors. Joel Miller (Southern California Elderly Care Home Specialist) initiates this discussion on how long escrow should last and if it's even important on how long it may last.

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

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Top 5 Reasons Why Businesses For Sale Fall Out Of Escrow And Don't Complete

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Elderly Care Homes Purchases: 5 Questions Buyers Should Not Be Afraid To Ask

When buying an Elderly Care Home what should potential buyers always ask the broker or owner before proceeding? Find out in this Discussion on BizBen. Items buyers of elderly care homes will want to know more about why the seller is moving on, average length of stay, placement fees paid, etc.

Interview: Joel Miller, Senior Care Specialist - How To Buy Senior Care Ctrs

In this BizBen inteview Joel Miller (Senior Care Specialist) discusses how to buy, value, and sell care facilities for the elderly. Joel discusses returns on investment, what to look for when searching to buy a care home, due diligence strategies, training that should be provided, and licensing.

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

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.

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.

See All News, Tips And Events

Joel Miller Senior Care Specialist
Business Purchase Financing SBA Loans
Cannabis Consulting Due Diligence Service
Southern California Legal Services For Buyers And Sellers


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