What Is My Assisted Living Facility Worth? EBITDA Multiples Explained
Lower middle market assisted living facilities typically sell at 3.5x–6x EBITDA. Occupancy, payer mix, and licensing history are the primary valuation drivers.
Assisted living facilities in the $1M–$5M revenue range are valued primarily on a multiple of EBITDA or Seller's Discretionary Earnings. Buyers adjust multiples based on occupancy rates, Medicaid versus private-pay revenue mix, staffing stability, and state licensing history. Real estate ownership can add significant value above the business multiple.
Assisted Living Facility EBITDA Multiple Ranges by Tier
| Business Tier | EBITDA Range | Multiple Range | Notes |
|---|---|---|---|
| Distressed / Turnaround | $150K–$300K | 3.5x–4.0x | Low occupancy below 75%, Medicaid-heavy payer mix, open licensing citations, or high staff turnover. Priced for risk-tolerant operators. |
| Average / Stable | $300K–$600K | 4.0x–4.75x | 80–88% occupancy, mixed payer base, clean license, standard staffing. Typical SBA-financed deal with seller carry component. |
| Strong Performer | $600K–$1M | 4.75x–5.5x | 90%+ occupancy, private-pay dominant, tenured staff, no citations. Attracts regional operators and healthcare-focused family offices. |
| Premium / Platform Asset | $1M+ | 5.5x–6.0x | Stabilized facility with real estate ownership, documented SOPs, low owner dependency. Ideal for PE-backed consolidators seeking anchor assets. |
What Drives Assisted Living Facility Multiples
Occupancy Rate & Trend
High impactFacilities sustaining 90%+ occupancy over 24 months command top multiples. Declining occupancy signals revenue risk and compresses buyer confidence and price.
Payer Mix: Private Pay vs. Medicaid
High impactPrivate-pay residents generate 20–40% higher revenue per bed than Medicaid. High Medicaid dependency reduces margins and lowers achievable multiples significantly.
Licensing & Citation History
High impactA clean state license with no substantiated deficiency citations is essential. Open enforcement actions or probation status can kill deals or force deep price reductions.
Staffing Stability & Turnover
Medium-High impactLow caregiver turnover and documented training programs reduce operational risk. Buyer concern over post-close staffing gaps or owner-as-caregiver dependency lowers value.
Real Estate Ownership
Medium impactOwned real estate adds a separate asset layer, often valued at $500K–$2M independently. PropCo/OpCo structures allow sellers to retain real estate while monetizing the operations.
Recent Market Trends
Sustained demand from aging Baby Boomers is keeping valuations resilient. Rising caregiver labor costs are compressing EBITDA, pushing buyers to scrutinize staffing expense closely. SBA 7(a) financing remains active for qualified buyers, supporting deal volume in the $1M–$3M purchase price range.
Sample Assisted Living Facility Transactions
16-bed private-pay assisted living in suburban Southeast, 92% occupancy, clean license, owner-managed with assistant administrator in place
$420,000
EBITDA
4.75x
Multiple
$1,995,000
Price
24-bed mixed payer facility in Midwest, 83% occupancy, minor prior citation resolved, real estate leased, seller financing offered
$310,000
EBITDA
4.1x
Multiple
$1,271,000
Price
32-bed private-pay memory care and assisted living in Western U.S., 95% occupancy, owned real estate, documented SOPs, absentee-ready
$875,000
EBITDA
5.5x
Multiple
$4,812,500
Price
EBITDA Valuation Estimator
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Industry: Assisted Living Facility · Multiples based on 4.0x–4.75x (Average / Stable)
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Frequently Asked Questions
What EBITDA multiple should I expect for my assisted living facility?
Most lower middle market facilities sell at 3.5x–6x EBITDA. Strong occupancy, private-pay mix, and clean licensing push multiples toward the high end of that range.
Does real estate affect the EBITDA multiple for an assisted living sale?
Real estate is typically valued separately from operations. Owned property is either included in the sale price or structured as a PropCo/OpCo lease, adding significant value above the business multiple.
How does Medicaid payer mix affect assisted living valuation?
High Medicaid dependency compresses margins and reduces buyer appetite. Facilities with 70%+ private-pay revenue consistently achieve higher multiples than Medicaid-heavy counterparts.
Can I use an SBA loan to buy an assisted living facility?
Yes. SBA 7(a) loans are commonly used for assisted living acquisitions, covering goodwill, working capital, and sometimes real estate. Buyers typically need relevant healthcare or management experience to qualify.
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