Many small skilled nursing operators and health systems are trying to decide what future they have within the senior housing sector. One important question they are asking themselves is whether or not they should sell their facility outright, or affiliate with a larger operator? Usually, the affiliation option is investigated first since the pool of firms to affiliate with is smaller and this tends to keep the discussion confidential. In a recent conversation with a larger operator, the owner expressed his frustration that many smaller companies come to him wanting to affiliate, but then want his firm to conform to their way of operating, and not the other way around. If you are thinking of affiliating, be prepared to give up a lot of control, because the “host” company will need to bring the operating model of your facility into alignment with the other facilities already in the portfolio. The sale option obviously has more finality to it, but can oftentimes provide non-profit entities with funds they can reinvest into their core niche or mission. If a potential sale is even on the table of discussion, it may help to know what your facility is worth in today’s market. Senior Living Investment Brokerage Inc. is always willing to prepare a free proposal to determine current market value and share what trends we’re seeing in your geographic market.
For more information, contact Toby Siefert at siefert@slibinc.com or 630-858-2501
