PRIME exits & American HealthCare Capital is pleased to to exclusively represent a modern assisted living facility for sale in located in Northern California. The facility is owned and operated by a husband-and-wife team who personally experienced the challenge of finding a high-quality assisted living facility for their own loved ones before the demise of one of them. Their aim was to establish a culture to invest in the social, physical, emotional, and spiritual wellbeing of the residents. They prioritize both the Quality of Care (QOC) and the Quality of Experience (QOE) at every interaction with the residents. Additionally, they wanted to ensure that they provide exceptional care not only to folks who could afford to pay for care privately, but also those on the state assistance program (MediCal).

To strike a balance between quality and affordability, the couple employed innovative operational and financial management strategies. Leveraging their extensive experience in technology and working for prominent corporations, they developed a proprietary management software that utilizes machine learning and performance management analytics to identify areas of overspending and wastage, offering guidance to the facility owners on maximizing profits. Thanks to this technology, the Company operates with an impressive 50% profit margin, a rarity in the assisted living facility industry. Moreover, the technology allows operators to run facilities with a reduced number of staff, effectively lowering payroll costs.

In June 2021, the Company assumed control of an existing assisted living that had been neglected for over a decade. The founders took charge and undertook the rehabilitation of the facility. After investing over $2 million and three years of hard work, the building is now thriving. With a 100% occupancy rate and a waitlist, this 150-bed facility serves as a shining example in its field.

Staff Overview

The Company employs approximately 80 people locally to support its operation and additional 15 people offshore to leverage labor arbitrage for administrative support.

Financial Overview

The Company is experiencing stellar financial performance with a long wait list of patients to become residents. They grew from $1.4 million in gross revenue in 2021 to nearly $4.9 million in 2022, to $9.3 million in 2023. Adjusted EBITDA has increased as well, reaching $4.6 million in 2023. In 2024, the company is on pace to gross $10.7 million with an adjusted EBITDA around $5.5 million.

The company aims to expand its operations to other parts of California by replicating its successful model and leveraging its proprietary, data-driven management analytics to run future projects. The founders want to partner with an experienced organization or investor that can help scale the company to become a major regional and national player.

The Opportunity and Exit Strategy

This opportunity includes both the business opportunity and the real estate. The founders are open to different deal structures, including selling a majority stake or rolling equity into a new joint venture, to achieve their objectives. They are currently under contract to acquire a 50,000 sq facility in SoCal and are in serious discussions to acquire another facility in South Bay.

The asking price for the business opportunity and real estate is to be determined or best offer.

 

 

 

 

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