Buy an Assisted Living Facility in Columbus, OH
The Columbus Market for Assisted Living Acquisitions
Columbus is one of the fastest-growing metros in the Midwest, and its senior population is growing with it. Franklin County's 65-plus cohort is expanding at roughly 3% annually, driven by migration and the aging of a large working-age population.
That demand creates a real acquisition opportunity. Active assisted living listings in this market number in the dozens, with a national median asking price around $1.5M and a price range that spans $150K for small residential care homes up to $25M for large licensed facilities.
The 3.7x average market multiple is one of the better multiples in the care sector, where some sub-sectors trade closer to 5x or 6x. For an SBA buyer, that pricing works.
Deal Economics: What the Numbers Actually Look Like
The median asking price across active listings is $1,500,000 with median cash flow near $339,000.
According to Regalis Capital's deal team, the median asking price for an assisted living facility in Columbus is approximately $1,500,000 with median annual cash flow near $339,000, implying a 4.4x price-to-cash-flow ratio on median assets. The broader market average multiple is 3.7x, meaning below-median deals at that multiple carry asking prices closer to $1.25M for the same cash flow.
A deal at the median looks like this:
Asking price: $1,500,000 Annual cash flow: $339,000 SBA loan (90%): $1,350,000 Seller note (5%, full standby at 0%): $75,000 Buyer cash (5%): $75,000 Annual debt service (10-year term, ~10.5%): approx. $221,000 DSCR: 1.53x
That DSCR sits just above the 1.5x floor. Workable, but not ideal. A facility priced at 3.7x on the same cash flow ($1.25M asking) produces a much cleaner DSCR closer to 1.9x to 2.0x, which is where the Regalis Capital deal team wants to be.
The target is 2x DSCR. The floor is 1.5x. Median-priced deals here sit right at the floor, so price discipline matters.
These are rough estimates based on market data. Actual terms depend on individual qualification and lender.
SBA Financing for an Assisted Living Acquisition
SBA 7(a) is the standard financing vehicle for this acquisition type. The structure on a $1.5M deal:
- 90% SBA loan: $1,350,000
- 5% seller note on full standby: $75,000
- 5% buyer cash: $75,000
The seller note on full standby means no payments to the seller during the SBA loan term. Regalis Capital achieves this structure on over 90% of its deals. It is the difference between needing $150,000 in cash and needing $75,000.
One important note: assisted living facilities often require a change-of-ownership approval from the Ohio Department of Health. That process can add 60 to 90 days to your timeline. Your SBA lender needs to know this upfront. Not all lenders have experience with licensed care facilities, and lender selection matters more here than in most acquisitions.
What to Look for When Buying in Columbus
Regalis Capital's acquisition data shows the most common deal-killers in assisted living acquisitions are census instability, deferred maintenance on ADA-required infrastructure, and undisclosed deficiencies on state inspection reports. In Ohio, buyers can pull the last three years of facility inspection history directly from the Ohio Department of Health database before submitting a letter of intent.
Census data. Occupancy rate and average daily census over the trailing 24 months is the revenue backbone. A facility showing 90% occupancy on paper but trending down is a very different asset than one holding steady. Get monthly data, not annual averages.
Payor mix. Private-pay residents produce more predictable revenue than Medicaid-heavy facilities. Medicaid reimbursement rates in Ohio are set by the state, and they do not always move with costs. Know what percentage of revenue is private-pay before you spend money on diligence.
Staff turnover. Assisted living is labor-intensive. High turnover signals management issues, culture problems, or wage compression, all of which destroy margins quickly. Ask for trailing 12-month payroll records and calculate the cost of turnover against stated EBITDA.
Licensing and inspection history. Ohio Department of Health licenses these facilities and publishes inspection reports. Pull the last three years. Deficiencies are common, but pattern violations are a problem. A buyer inherits the regulatory relationship when they close.
Real estate. Does the asking price include the real estate or is it a lease? Owned real estate changes the deal structure and financing significantly. SBA 504 may be more appropriate than 7(a) when real property is involved.
Frequently Asked Questions
How much does it cost to buy an assisted living facility in Columbus, Ohio?
Active listings range from $150,000 for small residential care homes to over $25,000,000 for large licensed facilities. The national median asking price is approximately $1,500,000. Most SBA-financed deals in this space fall between $500,000 and $5,000,000, the SBA 7(a) maximum.
Can I use SBA financing to buy an assisted living facility in Ohio?
Yes. SBA 7(a) loans are commonly used for assisted living acquisitions. The standard structure is a 90% SBA loan, 5% buyer cash, and a 5% seller note on full standby acting as equity. The 10% equity injection on a $1.5M deal requires $75,000 in buyer cash.
What debt service coverage ratio should I target for an assisted living acquisition?
Target a 2x DSCR. Regalis Capital's deal team uses 1.5x as the floor, but deals at the floor leave little room for census dips or cost increases. A facility priced at 3.7x cash flow with the standard SBA structure produces a DSCR closer to 1.9x to 2.0x.
What Ohio-specific regulatory issues affect assisted living acquisitions?
Ohio Department of Health licenses all assisted living facilities and must approve changes of ownership. That approval process typically adds 60 to 90 days to the closing timeline. Buyers should also pull the facility's inspection history from the ODH database, which is publicly accessible.
How long does it take to close on an assisted living facility in Ohio?
A standard SBA 7(a) acquisition closes in 60 to 90 days from executed letter of intent. Add another 60 to 90 days for Ohio Department of Health change-of-ownership approval, which typically runs concurrently but can delay funding if not initiated early. Budget four to six months from LOI to keys.
Thinking About Buying an Assisted Living Facility in Columbus?
Columbus's senior population growth is real and the deal math at 3.7x multiples works for SBA buyers. The complexity is in the licensing, the payor mix, and the operational reality of running a care facility.
Regalis Capital's deal team reviews 120 to 150 deals per week and has specific experience structuring SBA acquisitions in licensed care settings. If you are evaluating a facility or want to understand whether a deal you are looking at pencils out, start with a deal assessment.
Frequently Asked Questions
How much does it cost to buy an assisted living facility in Columbus, Ohio?
Active listings range from $150,000 for small residential care homes to over $25,000,000 for large licensed facilities. The national median asking price is approximately $1,500,000. Most SBA-financed deals in this space fall between $500,000 and $5,000,000, the SBA 7(a) maximum.
Can I use SBA financing to buy an assisted living facility in Ohio?
Yes. SBA 7(a) loans are commonly used for assisted living acquisitions. The standard structure is a 90% SBA loan, 5% buyer cash, and a 5% seller note on full standby acting as equity. The 10% equity injection on a $1.5M deal requires $75,000 in buyer cash.
What debt service coverage ratio should I target for an assisted living acquisition?
Target a 2x DSCR. Regalis Capital's deal team uses 1.5x as the floor, but deals at the floor leave little room for census dips or cost increases. A facility priced at 3.7x cash flow with the standard SBA structure produces a DSCR closer to 1.9x to 2.0x.
What Ohio-specific regulatory issues affect assisted living acquisitions?
Ohio Department of Health licenses all assisted living facilities and must approve changes of ownership. That approval process typically adds 60 to 90 days to the closing timeline. Buyers should also pull the facility's inspection history from the ODH database, which is publicly accessible.
How long does it take to close on an assisted living facility in Ohio?
A standard SBA 7(a) acquisition closes in 60 to 90 days from executed letter of intent. Add another 60 to 90 days for Ohio Department of Health change-of-ownership approval, which typically runs concurrently but can delay funding if not initiated early. Budget four to six months from LOI to keys.
Note: Deal economics, pricing, and cash flow figures referenced on this page are estimates based on aggregated listing data and general SBA acquisition math. Actual deal terms vary by business, market conditions, and lender requirements. This content is informational only and does not constitute financial advice.
Evaluating an assisted living facility in Columbus? Regalis Capital's deal team can run the numbers and structure your SBA acquisition from LOI to close.
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