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

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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

EBITDA Multiple Range & Deal Economics

What buyers typically pay for Memory Care Facility businesses

4×

Low Multiple

5.5×

Mid Multiple

7×

High Multiple

Memory Care Facility businesses in the $1M–$5M revenue range trade at 47× EBITDA in the lower middle market. Multiple variance is driven by recurring revenue percentage, owner dependency, client concentration, and growth trajectory. Growing market conditions support multiples at or above the midpoint.

Full valuation guide for Memory Care Facility

SBA Loan Eligibility

Memory Care Facility acquisitions are SBA 7(a) eligible, meaning buyers can finance up to 90% of the purchase price. This expands the qualified buyer pool significantly and allows first-time acquirers to close with 10% down. Typical SBA terms run 10 years at prime + 2.75%. Sellers are often asked to carry a 5–10% note alongside SBA financing to satisfy the lender's equity requirement.

Up to 90% financed10% equity injection10-year terms available

Who Buys Memory Care Facility Businesses

Typical acquirer profile for this segment

Regional senior living operators expanding into specialized memory care, private equity-backed senior care platforms pursuing buy-and-build strategies, individual healthcare investors or clinical professionals seeking owner-operator models with SBA financing, or real estate investors pairing with operators in a PropCo/OpCo structure

Key Due Diligence Focus Areas

What to investigate before buying a Memory Care Facility business

  • 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
Full due diligence checklist for Memory Care Facility

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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