WHAT TO EXPECT IF YOU ARE SELLING YOUR CARE HOME
THE SALES PROCESS
Making the final decision to sell your care home may not be easy. After all, you may have invested years of hard work, dedication and capital into your home, and letting go is complicated. At RCFE Resource, we understand and appreciate these all-too-human emotions. Our financial and market expertise enable our clients to obtain the maximum value for their assets. Our team brings considerable real estate, financial, accounting and marketing expertise to every transaction. This team approach greatly benefits our clients. While every transaction is different, the steps below are an outline of what to expect when you work with our team.
PREPARATION AND ANALYSIS
Depending on the client, our marketing plans may be laser-targeted and specific, or more broad-range. We always take into account the client’s unique objectives when developing our marketing plan. Sellers will have access to our large database of qualified “buyers in waiting” to purchase senior and adult residential facilities.
Occasionally, sellers engage us in advance of the sale so that we can offer suggestions on increasing the value of the asset prior to sale. It is always up to the client whether or not they wish to implement our suggestions.
We will develop a comprehensive marketing plan based on each particular client’s needs. We consider the client’s time frame, price objectives and need for discretion and privacy of sale. At this point, property and business listing agreements are signed. We never lock our clients into long-term contracts, and always emphasize the RCFE Resource motto of having a win-win situation for all parties.
Depending on the client, our marketing plans may be laser-targeted and specific, or more broad-range. We always take into account the client’s unique objectives when developing our marketing plan. Sellers will have access to our large database of qualified “buyers in waiting” to purchase senior living facilities.
Offers are usually in the form of purchase agreements for the property and business, or submitted to us as a Letter of Intent (LOI) prepared by the buyer or their agent. We will qualify each potential buyer and review the pros and cons of every offer. Once the contracts are signed by all parties, the Due Diligence Period begins.
DUE DILIGENCE PERIOD
After signing the purchase contracts, the buyer deposits into escrow a pre-negotiated cash deposit. The due diligence phase usually extends for 17 or more days, depending on the size of the facility. Due diligence phase is when the buyer has the opportunity to examine the books and records of the business and conduct inspections of the property. Third-party investigations will also ensue, such as conducting an appraisal of the real estate by the buyer’s lender, also occur during this time. The buyer may cancel the contract during the due diligence period without penalty and receive a full refund of their cash deposit tendered upon contract acceptance. This may occur if the buyer discovers something that contradicts the information in their initial analysis, such as revenues which are significantly lower than initially communicated, or if an appraisal of the real estate indicates that the value is overstated. Transaction prices can then be renegotiated. At the conclusion of the due diligence period, the buyer’s deposit becomes non-refundable and the transaction goes into the closing stage.
CLOSING THE TRANSACTION
During this final stage of the transaction, all open points and “to do’s” are handled, and any outstanding issues or information requests are addressed. Upon completion, the buyer wires the remaining funds to escrow. Documents are signed in front of a notary, and escrow proceeds are distributed to the seller. The deed is recorded with the county, designating the new owners as titleholders. Escrow is then closed.
If you are considering selling your senior or adult care home, contact us for your complimentary consultation and free home and business valuation.
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