Why Deals Really Happen
It's not just mom-and-pop operations selling anymore. Here's the many reasons facilities hit the market:
THE STRATEGIC SELLOFFS:
Personal pruning: "These 3 facilities in Ohio aren't worth the headache anymore"
I know an owner who lives in Brooklyn who goes to a state in the middle of the country every week from early Monday morning to Thursday. He has 9 homes in this state and 1 home in Wisconsin. He would really love to sell this home as it would allow him to be home by Wednesday every week.
Failed expansion: "We thought we'd build an empire in Florida. We were wrong. Guess we're not as good as we thought we were. Or the state is insane and there's no business model for us."
Regulatory retreat and throwing your hands up in the air: "That state's survey teams are insane. We're out." (Don't worry though. Anyone who has the ability to exit a state or a portfolio without being bankrupt has plenty of resources. I would not worry about them too much.)
THE PARTNERSHIP DRAMA
Retirement exit: "Chaim wants to move to Florida and play golf"
Next-gen revolt: "The kids don't want to deal with CMS paperwork"
Partner warfare: "We can't agree on anything anymore, let's just split it up"
Succession planning: "Better to sell now than fight over it later"
THE REALITY CHECKS
Operational exhaustion: "I'm tired of 5am phone calls about broken elevators"
Capital requirements: "This place needs $2M in renovations we don't have"
Staffing burnout: "I can't find nurses and I'm done being the staffing agency"
Survey fatigue: "One more citation and I'm buying a beach house instead"
THE HONEST ONES
"We're better investors than operators"
"The spreadsheet looked good, the reality sucked"
"My wife said it's either the nursing homes or the marriage"
"I made enough money, why keep the stress?"
Send us your example! I know I am missing some here. Anonymous submissions welcome - thesnfshmooze@gmail.com
