The sale of a skilled nursing facility, step by step
From the first confidential call to the change of ownership: what happens, what you sign, and what sets the timeline.
A confidential sale of a skilled nursing facility runs in stages: a value from the record, preparation, quiet marketing to vetted buyers, a letter of intent, a purchase agreement and an operations transfer agreement, due diligence, the change-of-ownership filings, and closing.
1. A confidential first call
What you want from the sale, on what timeline, and what matters to you beyond price: staff, residents, your name in the community.
2. A value from the record
An opinion of value built from your building's own numbers and the trades around it. How valuation works.
3. Preparation
The documents buyers ask for first: recent financials, cost reports, census by payer, survey history, staffing, licences and any leases. Having them ready shortens diligence later.
4. Quiet marketing to vetted buyers
No public listing. Buyers see a blind summary first and sign a confidentiality agreement before they learn the name. More than one qualified buyer at the table is what moves price.
5. Offers and a letter of intent
Offers are compared on price, structure, deposit, diligence period and certainty of closing, not price alone. The chosen buyer signs a letter of intent.
6. Purchase agreement and operations transfer agreement
The purchase agreement covers the sale. The operations transfer agreement covers the handoff of the operations: staff, residents' accounts, vendor contracts and when billing moves to the new operator.
7. Due diligence
Financial, legal, survey, environmental, title and zoning review. In our Ohio closing, a zoning report required on closing day paused bank funding until it was resolved.
8. Change of ownership
The state licence, the Medicare provider agreement and the Medicaid provider agreement move to the new operator. CHOW and Medicaid, explained.
9. Closing and transition
Funds move, the new operator takes over, and the communication plan for staff, residents and families runs as agreed.
Questions owners ask
Will my staff find out I am selling?
Not from us. Buyers sign confidentiality agreements before they learn the name, and when and how staff are told is planned with you.
Do I have to sell the real estate and the operations together?
No. You can sell either or both. A lease between the two, or the end of one, changes who can buy and how they pay.
What if a buyer backs out?
Keeping more than one qualified buyer engaged is the protection. Our Ohio closing survived two buyer fallouts and still closed all cash.
What sets the timeline?
Mostly three things: how quickly the documents are ready, the buyer's financing, and the state's change-of-ownership review.