Highly fragmented · Approximately $90–$100 billion in the U.S., with over 30,000 licensed assisted living communities nationwide

Acquire a Assisted Living Facility
Business

The assisted living industry provides residential housing with personal care services for seniors and adults who need assistance with daily activities but do not require skilled nursing care. The sector is highly regulated at the state level and is experiencing sustained demand growth driven by the aging Baby Boomer population, making it a resilient and growing segment of the broader senior care market. Lower middle market facilities (10–50 beds) remain fragmented and owner-operated, creating significant acquisition opportunity for regional consolidators.

Who buys these: Healthcare entrepreneurs, private equity-backed regional operators, experienced healthcare administrators, family office investors, and retiring nurses or healthcare professionals looking to own and operate a residential care business

3.56×

Typical EBITDA multiple

$1M–$5M

Revenue range

Growing

Market trend

SBA Eligible

7(a) financing available

Recession Resistant

Essential service

Typical Acquisition Criteria

Typically seeking facilities with 10–50 beds, 80%+ occupancy, stable staffing, clean licensing history, $300K–$1.5M SDE, real estate optionality (lease or owned), and documented care plans with compliant records

Get Deal Flow In Your Inbox

New Assisted Living Facility acquisition targets delivered weekly — free to join.

Join Free

Buyer Pain Points

  • 1Navigating complex state licensing and regulatory compliance requirements that vary significantly by jurisdiction
  • 2Difficulty assessing true staffing costs and turnover risk embedded in historical financials
  • 3Uncertainty around Medicaid/Medicare reimbursement rates and potential policy changes affecting revenue
  • 4Identifying whether occupancy rates are sustainable or inflated due to temporary factors
  • 5Managing liability exposure and understanding the scope of existing or pending litigation

Common Deal Structures

  • 1Asset purchase with real estate lease assignment or separate real estate purchase, SBA 7(a) financing for goodwill and working capital
  • 2Stock/entity purchase with seller financing (10–20%) and earnout tied to occupancy thresholds post-close
  • 3Real estate separated into a PropCo/OpCo structure with seller holding real estate and leasing back to buyer

Due Diligence Focus Areas

Key items to investigate when evaluating a Assisted Living Facility acquisition

  • State licensing status, inspection history, and any citations or deficiency reports
  • Occupancy rate trends, payer mix (private pay vs. Medicaid), and revenue concentration
  • Staffing levels, turnover rates, caregiver-to-resident ratios, and wage compliance
  • Real estate lease terms or property condition, including ADA compliance and fire/safety codes
  • Resident contracts, care agreements, and any outstanding litigation or grievance filings

Competitive Moats

  • State licensing creates a meaningful barrier to entry that limits new competitors in established markets
  • Long-tenured resident relationships and family trust create high retention and stable, recurring revenue
  • Real estate ownership combined with operations creates a dual-asset value proposition that protects against lease risk and builds long-term equity

Key Industry Risks

  • Regulatory and licensing risk with state-specific compliance requirements, inspection regimes, and potential for license revocation
  • Staffing shortages and rising caregiver labor costs driven by a tight healthcare labor market and minimum wage increases
  • Reimbursement risk tied to Medicaid policy changes that can compress margins for facilities with high government payer mix

Seller Intelligence

Who sells Assisted Living Facility businesses?

Owner-operators in their 60s–70s approaching retirement, healthcare professionals who built a single facility and lack a succession plan, small family-run operators facing increasing regulatory burden, or owners dealing with burnout from 24/7 operational demands

Typical exit timeline: 12–24 months

Seller page

Frequently Asked Questions

How much does a Assisted Living Facility business cost?

Assisted Living Facility businesses in the $1M–$5M revenue range typically sell for 3.5–6× EBITDA. Typically seeking facilities with 10–50 beds, 80%+ occupancy, stable staffing, clean licensing history, $300K–$1.5M SDE, real estate optionality (lease or owned), and documented care plans with compliant records

What EBITDA multiple do Assisted Living Facility businesses sell for?

Assisted Living Facility businesses typically trade at 3.5–6× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.

How do I buy a Assisted Living Facility business with an SBA loan?

Assisted Living Facility businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Asset purchase with real estate lease assignment or separate real estate purchase, SBA 7(a) financing for goodwill and working capital

What should I look for when buying a Assisted Living Facility business?

Key due diligence areas include: State licensing status, inspection history, and any citations or deficiency reports; Occupancy rate trends, payer mix (private pay vs. Medicaid), and revenue concentration; Staffing levels, turnover rates, caregiver-to-resident ratios, and wage compliance; Real estate lease terms or property condition, including ADA compliance and fire/safety codes; Resident contracts, care agreements, and any outstanding litigation or grievance filings.

Related Industries to Acquire

Related Searches

buy assisted living facility for saleassisted living business acquisition SBA loanresidential care home for sale owner financinghow to buy a small assisted living facilityassisted living facility investment opportunityacquire memory care group home businessadult residential care facility for sale under 5 millionassisted living facility cash flow analysisbuying licensed board and care homeassisted living business due diligence checklist

Start Finding Assisted Living Facility Deals Today — Free to Join

DealFlow OS surfaces acquisition targets, scores seller motivation, and generates outreach — all in one place.

Start finding deals — free

No credit card required