Highly fragmented · $8–10 billion (standalone memory care segment); part of the broader $95B+ senior care and assisted living market in the U.S.

Acquire a Memory Care Facility
Business

Memory care facilities provide specialized residential care for individuals with Alzheimer's disease, dementia, and other cognitive impairments, offering secured environments, structured programming, and higher staff-to-resident ratios than standard assisted living. The industry is driven by powerful demographic tailwinds as the 65+ population surges and dementia diagnoses increase, creating sustained demand that outpaces available supply in most markets. Operators in the $1M–$5M revenue range are predominantly independent single-site facilities that represent significant consolidation opportunities for regional and national platforms.

Who buys these: Healthcare investors, senior living operators, private equity-backed senior care platforms, nurse practitioners and physicians seeking operational ownership, regional assisted living operators looking to expand specialized care offerings

47×

Typical EBITDA multiple

$1M–$5M

Revenue range

Growing

Market trend

SBA Eligible

7(a) financing available

Recession Resistant

Essential service

Typical Acquisition Criteria

Typically 10–60 licensed memory care beds, stable or growing census above 75% occupancy, strong private-pay mix (50%+), clean state survey history with no Class A deficiencies, identifiable and trainable management team, real estate either included or on long-term lease with favorable terms, EBITDA of $300K–$1.5M

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Buyer Pain Points

  • 1Navigating complex state licensing and regulatory compliance requirements for memory care operations
  • 2Ensuring adequate staffing ratios and retaining qualified dementia-care-certified staff in a tight labor market
  • 3Understanding reimbursement mix between private pay, Medicaid, and long-term care insurance and its impact on cash flow
  • 4Assessing liability exposure from resident safety incidents, elopement risks, and family litigation
  • 5Evaluating facility physical plant condition, ADA compliance, and dementia-specific design requirements

Common Deal Structures

  • 1Asset purchase with real estate included, SBA 7(a) financing covering goodwill and equipment, seller carry on 10–15% of purchase price
  • 2Asset purchase with real estate sold separately to a REIT or real estate investor and leased back to the operator
  • 3Stock purchase used when preserving Medicaid provider agreements or existing state licenses is critical, with representations and warranties insurance

Due Diligence Focus Areas

Key items to investigate when evaluating a Memory Care Facility acquisition

  • State licensing status, survey history, and any pending deficiencies or corrective action plans
  • Census trends, payer mix breakdown, and average daily rate by payer type
  • Staffing ratios, turnover rates, and certification levels of care staff and administrators
  • Real estate condition, lease terms or property appraisal, and capital expenditure requirements
  • Resident acuity levels, care agreement terms, and family complaint or litigation history

Competitive Moats

  • Specialized dementia programming and certifications that justify premium private-pay rates and create strong family referral networks
  • Established relationships with local hospital discharge planners, neurologists, and elder law attorneys generating consistent admissions pipeline
  • Secure, purpose-built or retrofitted physical environments with meaningful switching costs that create high barriers to replication in certificate-of-need states

Key Industry Risks

  • Chronic labor shortages and wage inflation for certified dementia care staff compressing operating margins
  • Increasing state and federal regulatory scrutiny, survey enforcement actions, and potential Medicaid reimbursement rate changes
  • Liability exposure from resident elopement, falls, or abuse allegations leading to litigation and reputational harm

Seller Intelligence

Who sells Memory Care Facility businesses?

Founder-operators and independent owners nearing retirement, family-owned memory care facilities where next-generation succession is not viable, nurse administrators or healthcare entrepreneurs who built single-site operations, small regional operators seeking liquidity after 10–20 years of ownership

Typical exit timeline: 12–24 months

Seller page

Frequently Asked Questions

How much does a Memory Care Facility business cost?

Memory Care Facility businesses in the $1M–$5M revenue range typically sell for 4–7× EBITDA. Typically 10–60 licensed memory care beds, stable or growing census above 75% occupancy, strong private-pay mix (50%+), clean state survey history with no Class A deficiencies, identifiable and trainable management team, real estate either included or on long-term lease with favorable terms, EBITDA of $300K–$1.5M

What EBITDA multiple do Memory Care Facility businesses sell for?

Memory Care Facility businesses typically trade at 4–7× EBITDA in the lower middle market. The market is highly fragmented with growing demand, which supports premium multiples.

How do I buy a Memory Care Facility business with an SBA loan?

Memory Care Facility businesses are SBA 7(a) eligible, making them accessible to first-time buyers. Asset purchase with real estate included, SBA 7(a) financing covering goodwill and equipment, seller carry on 10–15% of purchase price

What should I look for when buying a Memory Care Facility business?

Key due diligence areas include: State licensing status, survey history, and any pending deficiencies or corrective action plans; Census trends, payer mix breakdown, and average daily rate by payer type; Staffing ratios, turnover rates, and certification levels of care staff and administrators; Real estate condition, lease terms or property appraisal, and capital expenditure requirements; Resident acuity levels, care agreement terms, and family complaint or litigation history.

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