Guide to Selling a Skilled Nursing Facilities (SNFs) Practice in Columbus, OH

Navigating Market Trends and Maximizing Your Practice’s Value

Selling your Skilled Nursing Facility (SNF) in Columbus is a significant decision. The current market presents unique opportunities for owners who are well-prepared. This guide offers insights into the Columbus market, valuation drivers, and the key steps involved in a successful sale. Understanding these factors is the first step toward achieving your personal and financial goals. A well-planned exit strategy can protect your legacy and maximize your final return.

Market Overview: A Seller’s Landscape in Columbus

The market for Skilled Nursing Facilities in Ohio is strong, and Columbus is at the center of this activity. Several key trends indicate that now is a favorable time for owners considering a sale.

High Demand and Occupancy

Statewide data shows a healthy demand for quality care. High-performing facilities in Ohio report occupancy rates exceeding 96%. This trend, combined with a tight overall rental market in Columbus, suggests that well-run SNFs are highly valuable assets. Buyers are actively looking for facilities with strong and stable occupancy, as it points to consistent revenue and a solid community reputation. Your facility’s specific rate is a critical talking point in any sale discussion.

A Growing Market

The Nursing Care Facilities industry across Ohio is projected to grow. This is largely driven by the “silver tsunami,” the increasing number of seniors requiring long-term care. For you, this means a growing pool of potential buyers, including large operators and private capital groups. They are looking to expand their footprint in stable, growing markets like Columbus.

Key Considerations for Columbus SNF Owners

Beyond market trends, the specific attributes of your facility are what drive a successful sale. Buyers look past the raw numbers to the quality of the operation. Your compliance history with the Ohio Department of Health is a major factor. A clean record will always attract premium interest. Equally important are the intangibles. Things like a strong reputation in the Columbus community, low staff turnover, and high patient satisfaction demonstrate a healthy, stable business. The physical condition of your facility and its location also play a big role. Preparing for Ohio’s Change of Ownership (CHOW) application process early is important. It is a detailed process that can cause significant delays if not handled correctly.

What’s Happening in the Market Today

The M&A market for SNFs in Ohio is active. Recent transactions show that a wide range of facilities are attracting buyers, from non-profits to those needing an operational turnaround. This activity provides a strong signal of buyer confidence in the Ohio market.

We see that even facilities with challenges, like negative cash flow, can be attractive to a buyer with a long-term vision. One recent Ohio sale involved a 99-bed facility that was losing money but represented a strategic entry point for a large operator. This shows that how your practice is positioned is just as important as its current financial performance. Understanding the right time to enter this active market is key.

The Path to a Successful Sale

Selling your practice is a process, not a single event. It starts long before a buyer is involved. The first step is preparation. This involves organizing your financial and operational documents to present a clear and compelling story. Next, we confidentially identify and approach a curated list of qualified buyers, rather than just listing your practice publicly. This creates a competitive environment to drive up value. Once offers are received, we move to negotiation and then to due diligence. This is where the buyer examines every aspect of your business. It is the stage where many deals face challenges. With proper preparation, you can anticipate buyer questions and ensure a smooth closing, protecting both your legacy and your financial future.

How Buyers Determine Your Practice’s Value

Many owners wonder what their facility is truly worth. While it seems complex, the approach buyers use is straightforward. They are looking to understand the true, repeatable cash flow of your business. Here is how we get to that number.

1. Finding the Real Profit (Adjusted EBITDA)
   We dont just look at the profit on your tax return. We calculate an “Adjusted EBITDA” (Earnings Before Interest, Taxes, Depreciation, and Amortization). This process adds back owner-specific or one-time expenses, like personal vehicle costs run through the business or an above-market salary. This gives a truer picture of the facility’s earning power for a new owner. Many owners are surprised to see how much more profitable their practice is after this step.

2. Applying a Market Multiple
   Next, a “multiple” is applied to that Adjusted EBITDA number. This multiplier is not random. It’s based on factors like your facility’s size, location in Columbus, payer mix, and growth potential. A facility that is not reliant on a single person and has a clear path to growth will command a higher multiple.

3. Telling Your Story
   Finally, the combination of these two figures gives us a baseline valuation. But buyers dont just buy numbers. They buy a story of future opportunity. A strong narrative can significantly increase the final price.

Planning for Life After the Sale

The day you close the deal is not the end of the journey. The decisions you make during the sale process have long-lasting effects. How the sale is structured has major implications for your after-tax proceeds. Planning for this early can make a significant difference in what you ultimately take home. You will also want to consider your role, if any, during a transition period. For many owners I speak with, protecting their legacy and ensuring their staff are taken care of under new ownership is just as important as the sale price. These are not afterthoughts. They should be central to your exit strategy from the very beginning. A successful transition is one where your personal, financial, and legacy goals are all achieved.