Preparing to sell a skilled nursing facility
A useful first step whenever you sell: the documents buyers ask for first, the questions to settle early, and what sets the timeline.
Preparing to sell a skilled nursing facility means gathering the documents buyers ask for first, deciding what you are selling and what matters besides price, and knowing what will set the timeline, ideally before you decide to sell.
The documents buyers ask for first
- The last three years of financial statements, and the trailing twelve months
- Medicare cost reports for the same years
- Census by payer, month by month
- The last inspection reports and any plans of correction
- Staffing reports, including agency use
- The state licence, provider agreements and any certificate-of-need documents
- Leases, management agreements and major vendor contracts
- Known capital needs: roof, systems, life safety
Questions to settle early
What are you selling? The real estate, the operations, or both.
What matters besides price? Staff, residents, timing, your name in the community.
Who needs to know, and when? Partners, lenders and family; staff are told on a plan agreed with you.
What sets the timeline
How quickly the documents are ready, the buyer's financing, and your state's change-of-ownership review. How CHOW and Medicaid work in a sale.
Start with your own numbers
Your building's occupancy, staffing, inspections and Medicaid rate are on its SNFRadar page, the same record a buyer will read. Find your building.
Questions owners ask
How early should I start preparing?
Before you decide to sell. Gathering the documents above costs nothing and commits you to nothing, and it shortens diligence whenever you go ahead.
Do I need to fix everything before selling?
No. Buyers price what they find; the point of preparing is that nothing surprises them late, which is when deals fall apart.