What Is My Assisted Living Facility Worth?

Assisted living facilities are premium acquisition targets driven by demographic tailwinds — the 65+ population is the fastest-growing age segment. PE firms, regional operators, and REITs are all acquiring in this space.

Typical Valuation Ranges

Most assisted living facilities sell for 3.5x to 5.5x SDE or 6x to 9x EBITDA for larger, multi-facility operators.

Factors that push toward the higher end:

• Occupancy above 90%
• Licensed bed count above 50
• Owned real estate
• Strong state survey history (no deficiencies)
• Memory care or specialty care capabilities
• Diversified payer mix (private pay + Medicaid + VA)
• Waitlist for beds

Factors that push toward the lower end:

• Occupancy below 75%
• Residential care home (under 10 beds)
• Lease facility with unfavorable terms
• Survey deficiencies or compliance issues
• Staffing challenges and high turnover
• Aging building needing capital improvements

What Drives Value

Occupancy rate is the single most important metric. A facility at 95% occupancy has fundamentally different economics than one at 70%. Every empty bed is lost revenue against fixed overhead.

Licensing creates barriers. Assisted living licenses are regulated by state, and in some markets, certificate-of-need requirements limit new supply.

Real estate often represents 40–60% of total deal value. Many transactions involve both the business and the property.

How to Increase Your Facility's Value

1. Maximize occupancy. Marketing, referral relationships with hospitals and physicians, and community outreach fill beds.
2. Maintain compliance. Clean survey history is non-negotiable. Invest in staff training and documentation.
3. Add memory care. Memory care units command higher per-bed revenue and address growing demand.
4. Retain staff. CNAs and caregivers are scarce. Competitive compensation and culture reduce turnover.
5. Maintain your facility. Updated common areas, resident rooms, and curb appeal matter to families choosing care.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.