Selling your adult day health care center in California.

Any number offered before reviewing your center is not a valuation. Value generally depends on normalized earnings, average daily attendance and its stability, managed care contracts, licensed capacity and utilization, lease or real estate, transportation, staffing, owner dependence and current buyer demand. A confidential review of your financial and operating information produces a defensible range rather than a guess.

In the transactions we see, the license stays with the licensed entity rather than being handed over to a buyer. That is generally why most sales in this market are structured as a purchase of the corporation that holds it: because the licensee itself does not change, there is typically no new license to obtain and the CBAS certification generally stays in place. A change of ownership is still reported to the state, though it is usually a simpler filing than seeking a new license. Under the Adult Day Health Care Act, new owners at the 5 percent level and new officers and directors generally require the department’s prior written approval, and plans or a landlord may have consent rights of their own. An asset sale generally puts the buyer in the position of applying for its own license and CBAS certification, which is why it is uncommon here. Which filings apply, and when, depends on the transaction. This is general background rather than advice, and how it applies to your center should be confirmed with your own attorney.

Because CBAS is delivered through Medi-Cal managed care, plan contracts are usually a central part of the transaction. Whether and how they carry over can depend on the contracts themselves, the transaction structure and the plans involved. Buyers pay close attention to this, and it is worth understanding your own contract terms before going to market.

Confidentiality is normally a seller's first concern in this market, and reasonably so. The opportunity can be marketed without identifying the center, we require confidentiality agreements before sensitive information is released, and disclosure is controlled and staged based on your preferences and how engaged a buyer is. When and how to tell staff is a decision made with you, not for you.

Both are common. If you own the real estate, you may have the option to sell it with the business or to retain it and lease to the buyer — two quite different outcomes financially. If you lease, remaining term, renewal options, rent relative to market and landlord consent can all affect marketability. Aligna Health is a licensed California real estate brokerage, which is why these two conversations happen together rather than separately.

Often yes, though it changes who the likely buyer is and how the transaction is positioned. A licensed center with capacity, a facility and contracts in place can be attractive to an operator confident in rebuilding census, particularly given the time and cost of opening a new center. Declining census does typically affect value and structure, and it is better addressed openly and early than discovered in diligence.

There is no universal timeline. In this vertical, timing tends to be driven by buyer financing, diligence, the ownership-change approvals, landlord or plan consents and other closing conditions. A more meaningful estimate is possible once the specific center and proposed structure are understood.

No. Many owners reach out several months before they intend to start the process, simply to understand current value, likely buyer interest and what should be in order first. That lead time is usually enough to prepare properly without delaying your plans. There is no cost or obligation to the conversation.

Seller representation is generally structured around a success-based brokerage fee, so compensation is tied to completing a transaction. Specific terms depend on the engagement and are discussed and agreed before the business is brought to market.