$2.4M
$1.3M
4.0x
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Metro MN Twin Cities Assisted Living 144G licensed business available. (2) locations licensed for 23 beds. Highly trained staff in place, owner operates remotely. Business has been around for over 20 years with year over year growth in profitability. Great location near bus line for employees. Buyer must be a current owner in the industry and qualify for SBA financing.
Why we like it
- Earnings Quality: $1.3M cash flow on $2.4M revenue delivers 56% margins, exceptional for healthcare services. Twenty years of consistent operation with year-over-year profitability growth demonstrates pricing power and operational discipline in a regulated environment.
- Durability & Moat: Assisted living sits in the healthcare necessity category with demographic tailwinds from aging Baby Boomers. Regulatory licensing creates barriers to entry, and established relationships with families, healthcare providers, and staff create switching costs that protect market position.
- Market Tailwinds: Senior population aged 85+ is projected to double by 2040, creating sustained demand for assisted living services. The Twin Cities metro provides a stable, affluent demographic base with family networks that support long-term placement decisions.
- Operator Advantage: Remote ownership model proves the business runs without constant owner involvement, making it attractive for professional operators. Experienced staff and established systems reduce operational risk for qualified buyers with industry experience.
How to improve it
- Revenue Optimization: Conduct market rate analysis and implement strategic rate increases, as assisted living typically has 3-5% annual pricing power due to switching costs and family decision-making inertia. Focus on premium services and amenities that justify higher rates.
- Occupancy Enhancement: Develop systematic referral partnerships with hospitals, rehabilitation centers, and physician practices to create consistent admission flow. Implement family ambassador programs and online reputation management to drive word-of-mouth referrals.
- Operational Efficiency: Audit staffing levels and scheduling to optimize labor costs while maintaining care quality. Implement technology solutions for medication management, care documentation, and family communication to reduce administrative overhead.
- Revenue Mix Expansion: Add ancillary services like physical therapy, medication management, or specialized memory care programming that command premium pricing. Partner with local healthcare providers to offer on-site services that increase per-resident revenue.
- Strategic Growth Planning: Evaluate expansion opportunities for additional beds at existing locations or acquisition of nearby facilities to achieve economies of scale. Develop relationships with SBA lenders familiar with healthcare transactions to facilitate future growth capital.
Diligence notes
- Regulatory Compliance: Verify all 144G licensing is current and in good standing, review recent state inspection reports, and confirm no outstanding violations or corrective action plans. Understand Minnesota's assisted living regulations and any pending regulatory changes that could impact operations.
- Financial Verification: Analyze occupancy rates, average length of stay, and resident turnover patterns to validate revenue sustainability. Review accounts receivable aging, Medicaid/private pay mix, and any outstanding insurance or regulatory penalties that could impact cash flow.
- Staffing Assessment: Evaluate staff retention rates, compensation levels versus market, and any union relationships. Confirm the management team's willingness to stay post-acquisition and assess their licensing and certification status.
- Market Analysis: Research competitive landscape, average assisted living rates in the Twin Cities market, and demographic trends for the specific service area. Verify the business location advantages claimed regarding public transportation access for staff.