Last Revised: 9/3/19. Posting #: 254601
Key Words: congregate living, clhf, moorpark, ventura
Financial Info: Price: $600,000. Down: $600,000. Adjusted Net: Call. Annual Revenues: $1,179,000. The CLHF will be sold at $600,000. The Real Estate will be sold at $800,000. Revenue: 2018: $1,179,000. Estimated 2019: $1,203,521.48. Seller Financing will be considered for the real estate portion of the sale only.
Profile: We have an exciting opportunity for you to acquire an existing, literally turnkey Congregate Living Health Facility (CLHF) that would include all of the required clinical staff, the patients and the actual facility immediate income. This transaction would be for the existing business as well as for the real estate.
The CLHF (the business portion of the transaction) will be sold at $600,000.
The facility just completed its most recent survey one year ago with no issues reported. Its NPI is intact along with its CDPH License. The Corporation standing is good with the Secretary of State and with the Franchise Tax Board.
The Real Estate (the land and the facility) will be sold at $800,000.
The home for this sale will be treated as a "facility" with the real estate value being assessed as a facility due to the financial and structural changes that are required to open this type of business. The CMA will include nearby CLHF that have sold in the recent 6 months that most resemble this specific CLHF.
Congregate Living Health Facilities (CLHFs) are defined in H&S Code, Section 1250(i) (1), as a residential home with a capacity of no more than six beds, which provides inpatient care, including the following basic services: medical supervision, 24-hour skilled nursing and supportive care, pharmacy, dietary, social recreational, and at least one type of service specified in paragraph (2). The primary need of CLHF residents shall be for the availability of skilled nursing care on a recurring, intermittent, extended, or continuous basis. The care is generally less intense than that provided in general acute care hospitals but more intense than that provided in skilled nursing facilities.
This facility currently has a means CLHF (C) License which is defined as services for persons who are catastrophically and severely disabled. A catastrophically and severely disabled person means a person whose origin of disability was acquired through trauma or non-degenerative neurologic illness, for whom it has been determined that active rehabilitation would be beneficial and for whom these services would be provided. Services offered by a CLHF to a catastrophically disabled person shall include, but not be limited to, speech, physical, and occupational therapy.
The facility is currently in a 5 bedroom single story home with each room having its own exit which is ideal for egress reasons. Currently, one of the bedrooms is being used as a shared room with all of the room being large in size. The facility is operating with 5 out of the 6 bed filled with the facility has an established brand name within the area referral sources. The facility has a Five Star Yelp review along with Cal Quality Care . org reporting no confirmed citations.
The current owners spared no expense on the facility with all of the construction being done with the finest materials and with great workmanship. The facility is ADA compliant with fire sprinklers in place, generator in place and well over $300,000 spent on the remodeling and compliance portion of the facility.
The existing referral sources would become a part of the sale in the form of goodwill, though it would be beneficial for the buyer to have their own referral sources.
The ideal buyer for this type of facility would be a clinician (e.g. RN, MD) who could work with the clinical staff and the patients, but this is not a deal breaker. The ideal buyer would also know how to operate the business portion of the CLHF. Seller is open to short-term employment with the buyer to maintain consistency and assist the buyer with a smooth transition.
Options regarding the real estate portion of the transaction. The Seller is willing to work with the Buyer to facilitate a smooth transition. The Seller will be able to offer a one year lease at $5,000 with an option to buy. Subsequent lease years, if applicable, will be increased incrementally to conform to market rates.
There are plenty of growth opportunities for strategic buyers and/or independent buyers.
Revenue: 2018: $1,179,000. Estimated 2019: $1,203,521.48
Seller Financing is NOT available for the business portion of the sale. Seller Financing will be considered for the real estate portion of the sale. It is imperative that ALL potential buyers: (1) Sign an NDA, (2) Provide Proof of Funds (redacted), and (3) understand that no direct communication with the CLHF clinical or administrative staff is expected as a part of the pre-due diligence phase of the sale.
Please Note: The seller is responsible for proving the accuracy of any information provided to the buyer's satisfaction. Information contained in this document is provided solely by the seller. No representations or warranties are provided by Park Regency Realty, its agents, representatives, or subsidiaries as to the accuracy, completeness or validity of such information. Interested parties are encouraged to seek the counsel of their accountant, attorney and/or other business advisors. Cooperation limited to CalDRE Licensees with extensive experience in healthcare business sales.
Professional Resources & Contacts To Help You Close Your Deal!
Profile: Willard Michlin is a business broker for 23 years. As a CPA & Certified Fraud Examiner, he works with buyers to get a FREE market valuation as well as full industry & financial due diligence on businesses they are interested in buying. He also offers FREE do-it-yourself due diligence training.
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