Client Background
A family-owned assisted living facility had been operating for over 30 years and was preparing for ownership transition as the founders neared retirement. The owners needed a structured exit plan to ensure a smooth transition and maximum sale price. The client hired Development Theory to help with an exit plan for an assisted living facility.
The Challenge
Valuation Uncertainty: The owners had no clear understanding of the business’s worth.
Staff & Resident Retention Risks: A change in ownership could lead to staff turnover and patient relocation.
Regulatory Compliance Issues: The industry required state licensing and compliance updates before a sale.
Limited Buyer Interest: The owners needed help finding qualified buyers who understood healthcare businesses.
Our Approach
Business Valuation: Conducted a market-based and income-based valuation to determine fair market value.
Transition Plan: Created a step-by-step transition guide for the new owner to retain staff and residents.
Regulatory Review & Compliance Support: Ensured the business met all state and federal regulations before listing for sale.
Buyer Outreach & Negotiation Support: Helped identify and vet qualified buyers.
Tax & Legal Planning: Advised on ways to minimize capital gains tax on the sale.
The Solution
Valuation report set a competitive asking price, leading to increased buyer interest.
Developed a transition package, allowing a seamless ownership transfer with minimal disruption.
Ensured regulatory compliance, preventing delays in the sale process.
Negotiated a sale price 18% higher than expected, due to strong financials and structured transition planning.
Results & Impact
Successfully sold the business within 8 months.
Over 90% of staff and residents remained, ensuring business continuity.
Reduced capital gains tax liability, allowing for a more profitable exit.
New owner onboarded smoothly, with minimal disruption to operations.
Client Feedback
"Selling our family business was an emotional process, but the structured exit plan made it seamless. We were able to retire comfortably, knowing the facility was in good hands!"
Development Theory Can Help Business Owners Like You
Looking to retire one day like this business owner? Our Exit Planning service provides you with an estimate of your business's current value and insights on how to leverage that value to retire. Don't miss out on the opportunity to plan for your future.
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