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
4–7×
Typical EBITDA multiple
$1M–$5M
Revenue range
Growing
Market trend
SBA Eligible
7(a) financing available
Recession Resistant
Essential service
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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Key items to investigate when evaluating a Memory Care Facility acquisition
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
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
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.
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
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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