Guide to Selling an Assisted Living Facilities (ALFs) Practice in Jacksonville, FL

The market for Assisted Living Facilities (ALFs) in Jacksonville is active. High occupancy rates and growing demand from an aging population create a favorable environment for sellers. If you are a practice owner, this presents a unique window of opportunity. Proper preparation is the key to navigating the complexities of a sale and achieving a premium valuation for your facility. This guide provides a clear overview of what you need to know.

Curious about what your practice might be worth in today’s market?

Market Overview

Jacksonville’s senior care market is defined by strong fundamentals. Floridas assisted living occupancy rate recently hit 85%, comfortably above the national average. This is driven by powerful demographic shifts. The states 65+ population is projected to grow by 27% by 2030, yet new construction is not keeping pace with this surging demand. For facility owners, this supply-demand imbalance supports higher valuations. The median monthly cost for assisted living in Jacksonville is already around $4,660, reflecting a robust and profitable operating environment. These conditions create a clear opportunity for owners considering an exit.

Key Considerations for Jacksonville ALF Owners

A strong market is only half the story. Sophisticated buyers look closely at the operational and regulatory health of your facility. Before you sell, your focus should be on a few key areas.

Regulatory Compliance

The Florida Agency for Health care Administration (AHCA) sets strict rules. Any pending citations or compliance gaps can delay or devalue a sale. Buyers will conduct thorough reviews of your licensing, safety protocols, and staffing records. New mandates, like the proposed 24/7 on-site nurse requirement, must be addressed in your operational plan and budget.

Operational Readiness

How you manage your facility day-to-day matters. A buyer will want to see stable staffing, high resident satisfaction, and clean financial records. This is not the time for messy books or unresolved operational issues. Presenting a well-run facility with clear documentation gives buyers confidence and protects your valuation.

Market Activity and Buyer Landscape

The favorable conditions in Jacksonville are translating into real-world transactions. We are seeing activity across the spectrum, from large institutional investors to local and regional operators. For example, the national firm Welltower recently acquired a Jacksonville ALF for $34.3 million, signaling strong interest from major players. At the same time, listings on platforms like BizBuySell show a healthy market for privately-owned facilities, with new development projects also underway in areas like Baymeadows. This mix of buyers creates a competitive environment. It also means you must be prepared to engage with different types of acquirers, from private equity groups to strategic competitors, each with their own process and priorities.

The 4 Key Stages of the Sale Process

Selling your facility is a structured process, not a single event. While every deal is unique, the journey typically follows four main stages. Understanding them helps you prepare.

1. Preparation and Positioning. This is where most of the work happens. It involves gathering financial and operational documents, addressing any compliance issues, and crafting a compelling narrative about your facility’s strengths and growth potential.
2. Confidential Marketing. Your advisor will identify and discreetly approach a curated list of qualified buyers. This is done without alerting your staff or residents, protecting the stability of your operations.
3. Managing Due Diligence. After initial offers are received, the preferred buyer will conduct a deep dive into your business. This is an intensive review of your financials, contracts, and regulatory history. Being organized here is critical to prevent delays.
4. Negotiation and Closing. The final stage involves negotiating the definitive purchase agreement, which includes not just the price but also the terms of the transition. An expert can help you navigate this final step to secure the best possible outcome.

How Your Assisted Living Facility is Valued

Your facilitys valuation is not based on revenue or a simple rule of thumb. Sophisticated buyers value your business based on its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your facility’s true cash flow. We start with your reported profit and add back expenses that a new owner would not incur, like your personal vehicle lease or a one-time major repair. Many ALF operators report profit margins over 20%, but the Adjusted EBITDA is often even higher. This cleaned-up number is then multiplied by a market-based figure (a multiple). For a stable, well-run ALF, this multiple could be in the 5.5x to 7.5x range or higher, depending on size, location, and growth profile. Proper preparation can significantly increase your Adjusted EBITDA and, therefore, your final sale price.

Planning for Life After the Sale

The final sale price is important, but how the deal is structured has major implications for your future. You will need to consider your personal goals for your legacy, staff, and finances. The right structure helps you achieve them. It is not always about getting 100% cash at closing. Different options offer different benefits.

Thinking through these options early is a critical part of a successful exit strategy. It ensures the final deal aligns with what matters most to you long after the transaction is complete.

The right exit approach depends on your personal and financial objectives.