How can I sell my facility and maintain confidentiality? A good start is Confidentiality Agreement, which we can prepare or certainly your attorney can provide. We also suggest that owners have an alternative address such as a P.O. Box or one's home address will suffice. Finally all trips to the facility can be done after hours or carefully disguised as a visit from a banker, insurance company, etc.
Are there any up front fees? There are only fees involved if a transaction closes and they are paid by the acquiring company.
How is RPS compensated? RPS is an intermediary generally compensated by its clients, the buyer or acquirer. The fee is based on results, if the transaction is not completed RPS earns no fee. Quite frankly, that is not a problem as many times the right transaction is not available for an operator. We view this as a long term relationship.
What will RPS need in order to process the transaction? Initially, most recent year-end and financials as well as most recent Medicaid Cost Report, where applicable. If there are reimbursement issues an additional inormation may be needed. If after the initial analysis it appears to both seller as well as RPS that transaction is possible additional information will accelerate the process.
How long will the total transaction take? Upon receipt of information by RPS, the chronology of a sale of a skilled nursing facility can be broken down as follows:
1. Preparation of memorandum, two days
2. Receipt of package, visit & issuance of letter of intent, two - three weeks
3. Signing of letter of Intent, negotiating & executing a contract or purchase & sale agreement, 30 -45 days
4. Transfer of license & approval by state authorities, 60- 90 days
This is far from set in stone. Many of the steps involved will be vary from facility to facility as well as from state to state. This is by far the most difficult question to answer as each transaction is unique.