Selling your Assisted Living Facility in Seattle presents a unique opportunity. The market is strong, with high demand and revenue potential. But a successful sale requires more than just a typical business transaction. It involves a complex valuation of both your operations and your real estate. This guide will walk you through the key factors you need to consider to navigate the process and achieve your financial goals.

Market Overview

The Greater Seattle Area is one of the most dynamic markets for assisted living in the country. If you are a facility owner, you are likely aware of the tailwinds, but it is important to understand the specific drivers. These factors create a favorable environment for sellers who are properly prepared.

Here is what defines the current market:
1. Strong Demographic Demand: The 75+ population in the region is growing, and this group has a higher-than-average income. This creates a large and financially stable customer base for your services.
2. High Revenue Potential: With the average cost of assisted living in Seattle near $6,750 per month, your facility operates in a premium market. This high revenue ceiling is very attractive to potential buyers.
3. Evolving Care Models: Buyers are increasingly looking for facilities that offer a continuum of care on a single campus. This trend toward integrated services is shaping acquisition strategies.

Key Considerations

Selling an ALF is not like selling a typical medical practice. You are selling two distinct assets at the same time: a healthcare business and a valuable piece of commercial real estate. Buyers will analyze both. They will look at your business’s profitability, often measured by Adjusted EBITDA, and apply a multiple. They will also assess the real estate’s value, perhaps using a capitalization rate.

Getting this balance right is the key to maximizing your sale price. Miscalculating one can devalue the other. This dual valuation is where many unguided sales fall short, as a standard business broker may not grasp the real estate component, and a real estate agent may not understand how to value the operational goodwill of your business. A coordinated strategy is needed to present both parts as a cohesive, high-value package.

Market Activity

The high demand in the Seattle market has attracted a diverse group of buyers, each with different goals and resources. Knowing who is actively acquiring facilities like yours helps you position your practice effectively. It
9s not about just finding a buyer. It is about finding the right type of buyer for your financial and legacy goals. We see activity from a few main groups.

Matching your facility to the right buyer profile is a critical step that requires a planned approach, not just a for-sale sign.

Sale Process

Many owners think that the selling process begins when they decide to list their facility. In our experience, the most successful sales begin two to three years before that. The timeline isn
9t about rushing to an exit. It is about giving you enough time to prepare, so you can sell on your terms, not a buyer
9s. A structured process protects your confidentiality and creates competition for your business. It generally unfolds in four phases: Preparation, Marketing, Diligence, and Closing. Preparation is the most important. This is where we work with owners to analyze financials, fix operational gaps, and build a compelling story around the numbers. When your facility is eventually shown to a curated list of qualified buyers, they see a clear, professional, and valuable opportunity.

Valuation

Your facility
9s valuation is not just a single number. It is a story told through financials, and buyers pay for a good story. We often find that owners undervalue their own businesses because they are looking at net income. Sophisticated buyers look deeper.

The Starting Point: Adjusted EBITDA

The true measure of your facility’s profitability is its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We start with your stated profit and add back personal expenses run through the business or a below-market owner salary. This gives us a true picture of the cash flow a new owner could expect. Many owners are surprised to see how much higher this number is.

The Multiplier

This Adjusted EBITDA figure is then multiplied by a number based on market conditions and your facility’s specific risk profile. A larger facility with a strong management team and diverse revenue streams will receive a higher multiple than a smaller one that relies heavily on the owner.

The Final Picture

The combination of your real estate value and the business valuation (Adjusted EBITDA x Multiple) creates your total enterprise value. This comprehensive approach ensures nothing is left on the table.

Post-Sale Considerations

The transaction is not the end of the story. Planning for what comes next is a critical part of the process, and it should happen before you sign any final documents. Thinking about these things early ensures the deal structure aligns with your personal and financial goals for the future.

Here are a few things to consider:
1. Your Legacy and Staff: The right buyer will respect the culture you have built. We can help you negotiate terms that protect your key employees and ensure a smooth transition for your residents.
2. Your Future Involvement: You do not have to walk away completely. Many deals are structured with the seller retaining some ownership (rollover equity). This gives you a stake in the future success and the potential for a second, future payout.
3. Your Financial Future: The structure of your sale has major tax implications. A well-planned deal can significantly increase your net proceeds, securing your financial future beyond the sale price.