Central Wisconsin Assisted Living Portfolio, 9 Licensed Facilities With Real Estate

$3.9M

Revenue

$718K

SDE

5.6x

Multiple

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Full Editorial Writeup

This is a nine-facility assisted living operation across Central Wisconsin, founded in 2006 and running continuously for nearly two decades. The homes serve a diversified population of adults with developmental disabilities, mental illness, physical disabilities, traumatic brain injuries, and frail elderly residents. Revenue comes almost entirely through direct reimbursement from the Wisconsin Department of Health Services, which is a government-backed payer that removes most collection risk and produces predictable cash flow.

The deal is notable for two reasons. First, it bundles substantial owned real estate: four single-family homes, two duplexes, and an office building with an attached living unit, plus two residential units under lease. Second, it is run on an absentee model with licensed professional staff handling daily operations, meaning the owner is not the clinical or operational engine of the business. Twenty-four-hour staffing by trained caregivers is already in place across all locations.

Financials show revenue holding in a tight band of roughly $3.6M to $3.9M across FY2023 to FY2025, but EBITDA has trended down from $830K to $645K over the same window. At a $4.0M asking price against $718K blended EBITDA (5.57x), the buyer is paying for real estate plus a government-payer annuity, but must underwrite the visible margin compression before signing.

Why we like it

Revenue is government-backed and recurring, paid directly by the Wisconsin Department of Health Services, which strips out most collection and bad-debt risk. Occupancy-linked reimbursement for a licensed care population is about as sticky as SMB revenue gets, and the top line held between $3.6M and $3.94M across three years.
The asking price includes a real estate portfolio of four single-family homes, two duplexes, and an office building with an attached living unit, all fee-owned. This means the buyer is acquiring hard assets alongside cash flow, which supports SBA or conventional financing and provides downside protection if operations ever falter.
Demand for care of developmentally disabled, mentally ill, brain-injured, and frail elderly adults does not fade in a recession. These are non-discretionary, state-funded placements with long lengths of stay, and the diversified client base across multiple care categories reduces concentration in any single population.
The business runs absentee with licensed professional staff already managing daily operations across all nine sites. A buyer with a healthcare or multi-site operations background can step in without needing to hold licenses personally, and the 24/7 staffed workforce is already in place.

How to improve it

Diagnose the EBITDA decline immediately. Margin fell from $830K in FY2023 to $645K in FY2025 while revenue stayed flat, so pull a line-by-line P&L to isolate whether the culprit is labor cost, agency staffing, occupancy dips, or reimbursement rate changes, then attack the biggest driver in the first 90 days.
Audit occupancy across all nine facilities and build a waitlist pipeline with county case managers and hospital discharge planners. Even a few empty beds at government reimbursement rates move EBITDA materially, so filling licensed capacity is the fastest lever available.
Rework staffing efficiency by reducing reliance on agency or overtime labor and improving caregiver retention. Turnover is the single largest cost creep in this model, so a structured scheduling and retention program can recover several points of margin without touching revenue.
Pursue rate optimization with the Wisconsin DHS. Confirm every resident is billed at the correct acuity level and reimbursement tier, and file for rate adjustments where care needs have increased since the last assessment, because underbilling on acuity is common in absentee-run operations.
Formalize the management layer so the absentee model survives ownership transfer. Document standard operating procedures, licensing compliance calendars, and reporting so the incoming owner is not dependent on any single administrator walking out the door.
Evaluate tuck-in acquisitions of nearby small operators. With a licensed, staffed platform and owned real estate already in place, this can become the acquisition base for a Central Wisconsin roll-up where each add-on shares overhead and back-office compliance functions.

Diligence notes

Reconcile the EBITDA trend line and the quoted $718K figure. FY2023 to FY2025 EBITDA was $830K, $681K, and $645K, which blends to roughly $718K, but the trailing number is actually $645K and declining. Underwrite the deal on trailing performance, not the flattering three-year average, and understand the 5.57x is really closer to 6.2x on current EBITDA.
Scrutinize the Wisconsin DHS reimbursement structure and rate stability. Confirm current per-resident rates, historical rate changes, contract terms, and any pending state budget or Medicaid waiver changes that could compress reimbursement. Government payer means low collection risk but exposes you to legislative and rate-setting risk.
Separate and independently value the real estate from the operating business. Get appraisals on the four homes, two duplexes, and office building, and review the two leased units' terms and renewal risk. You need to know how much of the $4.0M is bricks versus cash flow to structure financing correctly.
Verify all nine facility licenses are current, transferable, and free of survey deficiencies or corrective action plans. Request the full regulatory history, incident reports, and any citations, because a single serious compliance failure can shut a facility and evaporate the associated revenue.
Investigate the staffing picture in detail: caregiver turnover, agency dependence, wage rates, and whether current staffing supports the absentee model post-close. Confirm the key administrators and clinical leads will stay, since an absentee buyer is entirely dependent on that layer remaining intact.
Probe the stated reason for selling. The listing says the owner is divesting to pursue other opportunities, but with EBITDA declining for two straight years, confirm there is no undisclosed reimbursement, staffing, or compliance headwind driving the exit.

Source

Originally listed on BizBuySell. View original listing →