Sell an Assisted Living Business | Max Snitkovsky, Iconic

Senior living M&A in 2026

Occupancy is high, new supply is scarce, and buyers are back.

Demand for assisted living is climbing while almost nothing new is being built. That has pulled record capital into the sector, from REITs down to small home operators.

Assisted living occupancy reached 89.1% in the third quarter of 2026

Overall senior housing occupancy hit 90.4% across the 31 largest markets, per NIC MAP data. Sixteen of those markets now average 90% or higher. NIC reported a 20th straight quarterly gain in mid 2026.

Sources: Senior Housing News, more than half of primary markets at 90% occupancy, Oct 2026, NIC press release, occupancy climbs as half of primary markets top 90%, Jul 2026

Assisted living inventory grew just 0.3% in a year

The historical average is more than 3% a year, per NIC. Fewer than 16,000 senior housing units were under construction in mid 2026. Existing homes and communities face little new competition for residents.

Sources: NIC, senior housing occupancy climbs in second quarter 2026, NIC press release, occupancy climbs as half of primary markets top 90%, Jul 2026

Senior housing deal volume hit a decade high

JLL counted $24 billion of seniors housing sales in 2025, the most since 2015, with an average cap rate of 6.2%. LevinPro LTC counted 871 public seniors housing and care deals in 2025, up 20.8%. Assisted living is the segment investors target most.

Sources: JLL, seniors housing investment reaches decade high of $24 billion, Mar 2026, LevinPro LTC, 2025 seniors housing and care M&A smashes records, Jan 2026

Families paid a median $6,200 a month for assisted living in 2025

That is up 5% from 2024, per the CareScout Cost of Care Survey. Rates are still rising, but more slowly than the double digit jump of 2024. Buyers want to see that your rates have kept pace.

Source: CareScout 2025 Cost of Care Survey, Business Wire, Mar 2026

What buyers are looking for

What an assisted living buyer checks first.

Whether it is a local operator buying one home or a REIT buying a community, the early asks overlap. I collect these files before marketing.

Census and occupancy history

Monthly occupied beds for the last 24 months, with move ins and move outs. Buyers want to see how fast you refill a bed and how long residents stay.

Rate sheet and payer mix

Base monthly rates, level of care fees and when you last raised them. Buyers check how much income is private pay versus government programs.

Licensed capacity

Your license shows the maximum number of residents you may serve. Buyers compare that number with the beds you actually fill and the beds the building could hold.

Inspection and violation history

Every licensing inspection report, violation and plan of correction for at least three years. A clean record shortens diligence and calms lenders.

Staffing and labor cost

Caregivers per shift, overtime, agency use and turnover. Buyers rebuild your schedule line by line to test what care really costs.

Resident agreements and assessments

Signed admission agreements, care assessments and service plans for each resident. Missing or outdated files read as a compliance risk.

What raises or lowers a home's price

What pushes your price down	What pushes your price up
Occupancy that swings and empty beds that take months to fill	Steady census above 90% with a waiting list or referral pipeline
Open violations or repeat findings on recent inspections	Clean inspection reports and written policies that match practice
The owner is the administrator, the scheduler and the night shift backup	A qualified administrator and lead caregivers who run the home without you
Rates that have not moved in two years	Annual rate increases and level of care fees that families accept
A short lease or a building that needs major work	Owned real estate sold with the business, or a long lease the landlord will assign
Move ins that all come from one placement agency or one hospital	Referrals from several agencies, hospitals, doctors and past families

Who is buying

Small home operators, healthcare companies and REITs are all buying.

Regional operators are adding single homes and communities near their own. REITs buy the real estate and keep an operator in place. Local owner operators buy many of the small homes.

Buyer type	What they pay for	Active examples
Residential assisted living operatorsStrategic	Small homes they can fold into a branded group with shared staff and management. Majestic Residences added 17 homes in one deal in 2026.	Majestic Residences, an unnamed operator that bought an eight community Midwest portfolio with 153 units
Regional owner operatorsStrategic	Nearby communities they can convert to their brand and operating systems.	Cavalier Senior Living, Capitol Seniors Housing, Janus Living, Juniper Communities, Thrive Senior Living
Healthcare companies adding senior livingStrategic	Assisted living and memory care in markets where they already offer home health or hospice. Pennant bought two Tucson communities in 2026, real estate included.	The Pennant Group
Healthcare REITsFinancial (real estate)	The real estate of stabilized communities, often keeping the current operator as manager. Prices can top $500,000 per unit for newer buildings.	American Healthcare REIT, LTC Properties, Omega Healthcare Investors

Recent senior living deals.

Assisted living deals announced in 2025 and 2026. Small home sales are rarely published, so this shows active buyers more than prices.

Date	Buyer	Target	Type	Value
Sep 2026	Janus Living	Assisted living facilityUpstate South Carolina; part of an ongoing buying spree	Strategic	Undisclosed
Aug 2026	American Healthcare REIT	Kensington portfolio8 communities, 745 units in California, Maryland, New York and Virginia; Kensington expected to stay as manager	REIT	$873M
Aug 2026	The Pennant Group	River Centre Assisted LivingTucson, Arizona; 63 units; real estate and operations	Strategic	Undisclosed
Jul 2026	Regional operator and private investor	Cardinal Senior Living portfolioRoanoke, Bedford and Danville, Virginia; 3 communities, 167 units, 295 licensed beds	Strategic	Undisclosed

Show all 15 deals

Date	Buyer	Target	Type	Value
Jun 2026	LTC Properties	MorningStar at ArcadiaPhoenix, Arizona; 104 assisted living and memory care units; MorningStar keeps operating	REIT	$54M
Jun 2026	Cavalier Senior Living	Truewood by Merrill (now Riverchase Senior Living)Alabama; 114 beds; rebranded	Strategic	Undisclosed
May 2026	The Pennant Group	Copper Canyon Memory CareTucson, Arizona; 40 units; real estate and operations	Strategic	Undisclosed
May 2026	Capitol Seniors Housing	Heartis FayettevilleAtlanta metro; 167 units	Strategic	Undisclosed
Mar 2026	Owner operator with a Wisconsin presence	Eight community portfolioMidwest; 153 units in total, about 19 per community	Strategic	Undisclosed
Feb 2026	Majestic Residences	Avendelle Senior LivingNorth Carolina based residential assisted living operator; 17 homes	Strategic	Undisclosed
Feb 2026	Omega Healthcare Investors	The Ridge at GrandeviewBirmingham, Alabama; 80 assisted living and memory care units; about $128,750 per unit	REIT	$10.3M
Jan 2026	SilverAssist	Caring.comNational senior care referral and review platform; joins Oasis Senior Advisors	Strategic	Undisclosed
Jan 2026	LTC Properties	Three community Arbor Company portfolioAtlanta, Georgia; about 400 units	REIT	$108M
Jul 2025	Sonida Senior Living	Senior living communityTexas; purchase agreement signed after closing 152 units in Florida and Georgia earlier in 2025	Strategic	$15.6M
Mar 2025	Solera Senior Living	Brightview Bethesda WoodmontBethesda, Maryland; 113 assisted living and memory care units; sold by Brightview	Strategic	Undisclosed

Industry valuation estimator

What is your assisted living or senior living business worth?

Most small homes and owner operated communities are priced on seller's discretionary earnings (SDE), often with the building included. Larger communities are priced on net operating income and a cap rate, and REITs often buy only the real estate.

Annual owner earnings: SDE, or adjusted EBITDA if you have a paid manager ($) Your average occupancy over the last 12 monthsThe buildingYour last two licensing inspectionsYour role in daily operations

Estimated value range

Enter your earnings

Illustrative only, not a valuation.

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Published ranges for this industry

Assisted living and nursing home businesses sold from 2021 to 2025: median 3.90x SDE, middle half 2.42x to 5.87x (BizBuySell)
Those 2025 sales averaged 3.18x SDE, the lowest of the five years, with a median sale price of $430,000 (BizBuySell)
About 5x SDE or more near $1 million in sales, and 3x or less under $400,000 in sales (BizBuySell)
Average seniors housing cap rate of 6.2% in the fourth quarter of 2025, with 85% of investors expecting it to fall (JLL)

Bands come from the published SDE multiples above, many of which include real estate. Occupancy, building, inspections and your role move them by amounts I chose. It is a first look.

Where home sales stall

Where assisted living owners lose money in a sale.

Most of these problems show up in diligence, after you have agreed on a price. Nearly all of them can be fixed with a year of preparation.

Letting census slip during the sale

Owners get distracted and stop filling beds. Buyers often tie price or earnouts to occupancy, so a dip can cost you twice.

Cost: A lower price or a missed earnout

Leaving licensing to the last minute

Virginia licenses do not transfer when ownership changes, and the licensee must notify the licensing office at least 60 days before a sale. Late notice pushes back closing.

Cost: A delayed close and a nervous buyer

Not deciding what to do with the building

You can sell the building with the home, lease it to the buyer or sell it to a REIT. Each path draws different buyers and prices.

Cost: The wrong buyers and lost value on the property

Paying yourself rent that is not market rate

If you own the building, rent that is too low or too high distorts earnings. Buyers will reset it and recalculate.

Cost: A lower multiple on earnings buyers do not trust

Going to market with open violations

Unresolved findings make buyers and lenders worry about the license itself.

Cost: A price cut, extra escrow or a lost buyer

Being the only administrator

If you hold the key role and the key relationships, the buyer has to replace you on day one.

Cost: A long transition, an earnout or seller financing

FAQ

What assisted living owners ask me before they sell.

Who is buying assisted living businesses right now?

Small home operators like Majestic Residences are buying groups of homes. Regional operators like Cavalier and Capitol Seniors Housing are buying single communities. REITs like American Healthcare REIT, LTC and Omega are buying real estate with an operator in place.

What multiple will my assisted living home sell for?

BizBuySell data for 2021 to 2025 shows a median of 3.90x SDE, with the middle half between 2.42x and 5.87x. Larger homes tend to sell at higher multiples. Many of those sales included the real estate.

Do I sell the real estate with the business?

You can do either. Some buyers buy both, as Pennant did in Tucson. Others, like REITs, buy only the property and keep an operator running it. I model both paths before we choose.

Does my license transfer to the buyer?

Not in Virginia. The rules say a license is not transferable when ownership or location changes. The licensee must notify the licensing office at least 60 days before a sale and return the license once it closes.

How long does it take to sell?

Assisted living and nursing home listings on BizBuySell sold in a median 203 days from 2021 to 2025. Iconic publishes a 5.2 month median time to close. Buyer licensing can stretch the timeline.

Is now a good time to sell?

Demand is strong. Senior housing occupancy reached 90.4% in the third quarter of 2026, and new supply is near record lows. JLL counted $24 billion of seniors housing sales in 2025, the most in a decade.

How do buyers value larger communities?

They divide net operating income by a cap rate. JLL put the average seniors housing cap rate at 6.2% at the end of 2025. Levin Associates reported an average of $268,600 per assisted living unit in 2025.

Will I have to carry a note or accept an earnout?

Often some of the price is deferred. Earnouts in assisted living deals are commonly tied to occupancy, profit or license approvals. Seller financing is used when buyers need help bridging the price.

Terms buyers will use

Census: The number of residents living in the home or community on a given day.
Occupancy: Occupied units or beds as a share of the total available.
Licensed capacity: The maximum number of residents your license allows you to care for.
SDE: Operator profit plus owner pay, perks and one time costs. Small assisted living homes are usually valued on it.
Adjusted EBITDA: Earnings before interest, taxes, depreciation and amortization, with one time items removed and a paid administrator's salary included.
NOI: Net operating income: property level income after operating costs, before debt and income taxes.
Cap rate: NOI divided by price. A lower cap rate means a higher price for the same income.
OpCo and PropCo: The operating company that runs the care and the property company that owns the building. They can be sold together or apart.
Operations transfer agreement: A contract that moves residents, staff, records and supplies from the old operator to the new one at closing.
Change of ownership: A sale that requires the buyer to obtain its own license from the state before operating.
Residential assisted living: Care in a house sized home with a small number of residents, also called board and care or a residential care home.
Memory care: Secured assisted living for people living with dementia, with specially trained staff.
Senior placement agency: A service that helps families choose a community, usually paid a referral fee by the community.
SHOP: Senior housing operating portfolio: a REIT structure where the REIT owns the property and shares in its operating results through a manager.

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Selling an assisted living home or senior community