Nursing Home in Springfield, OH
A nursing home in Springfield was in financial stress and “everyone” knew that they were for sale. The organization had two of their corporate attorneys searching for potential buyers and local competing nursing homes were aware that they were for sale.
The property was appraised for $1.5 million. The best that the owners and their attorneys were able to do on their own was to receive several “verbal offers’ for $2.5 million for the business, the assets, bed licenses and the 4.4 acres of land near a regional hospital.
Chris Foley worked with the owners and, in just a few weeks, the prospects for a successful sale were significantly better. Chris’ background as a financial auditor and his market perspective as a business consultant served him well when his financial review of the business and its assets determined a value that was $2 million more than the owners and their attorneys were able to achieve.
Chris’ market knowledge within Ohio and across the United States and whose electronic communications & personal relationships with regional and national decision makers brought a written offer and ultimately sold for $4.8 million. This is a $2.3 million (or 92%) increase in value. Most importantly to the owners, they felt comfortable with their choice of the company that would continue the legacy that began with the nursing home’s founders nearly half a century before.
Nursing Home in Rural Michigan
A nursing home in rural Michigan had listed their business and property with a business broker who was unable to sell it on their own. The broker teamed up with Chris Foley and a record-setting transaction was achieved in just five (5) business days.
From the initial electronic communication to Chris’ network of decision makers and investors, multiple interested parties were brought to the table. In this instance, a regional company with headquarters in Kentucky made the first move. Within 3 days, the company flew from Kentucky to Michigan amid blizzard winter conditions and tornados in Kentucky & Tennessee the night before. After visiting the Michigan property and meeting with the owner, a verbal agreement was reached the same day. The next day, the Buyer sent a draft of the Letter of Intent (“LOI”). One day after the LOI draft, the Letter was signed by both parties and $50,000 was wire-transferred to seal the deal.
By working with Chris Foley, the owner received over 45% more for his business than the asking price established by the business broker.
$24 Million Assisted Living Portfolio
Originally listed for $18 million around the year 2008, the 3 Assisted Living Properties were profitable and operating for about ten years. During the listing period, the Owner constructed an additional 22 units and increased each of the facility’s operating profitability. Due to the increased profitability, the Owner increased the asking price to $21 million. A further increase to $24 million was justified upon completion of the additional 22 units.
Most buyers were uninterested in paying more for the properties, however, Chris persisted in his search for Buyers that recognized the value of the cash flow and quality construction and who had the ability to pay for it. Chris’ search led him to Chicago and New York where, after a prolonged due diligence period, the Portfolio sold at its $24 million listing price in 2010 at near record-setting average sale price of $140,351/bed.