If you’re an investor with a significant portion of resources in the senior real estate market, it’s an exciting time for your portfolio…
Especially if there’s a senior housing acquisition in your 2018 plans.
As McKnight’s Senior Living reports, a Capital One survey reveals that 89% of participants believe “merger and acquisition activity in seniors housing and long-term care will stay the same or accelerate over the next year.”
And when it comes to acquiring senior living communities, more than likely you’re considering properties with a long-term growth potential—and you might anticipate, and even expect, some instability and revenue loss during your acquisition.
But here’s the reality…
You can achieve stability and revenue growth as you take ownership of new properties in the short-term future.
In this article, we’re sharing why you shouldn’t settle for revenue loss, what’s holding you back from increased occupancy, and how a turnkey solution can transform your senior housing acquisitions.
Low Expectations for Senior Housing Acquisitions
There’s no denying that senior housing acquisitions create a disruption for senior living properties. After all, your organization is absorbing the strengths—and the weaknesses—of the previous company.
But if you’re a senior living investor, don’t set your expectations too low.
Changing hands at a property doesn’t have to be the death blow to your short-term occupancy numbers. And, while it can be challenging for team members to report to new management, that’s not what’s keeping your new communities from growth goals.
In fact, if your properties are experiencing low occupancy, there’s likely a common reason behind their struggles…
The Obstacle between Your Acquisitions and Growth
There’s no need to settle for revenue loss during senior housing acquisitions for a very simple reason.
Transitioning your properties is only half your battle.
Your real challenge is ensuring your properties have the infrastructure needed to grow top-line revenue and processes that ensure execution of revenue growth strategies.
To see if the portfolio you’re acquiring has what’s needed to drive occupancy, here are a few questions to help you analyze your communities…
- Does each community have a cohesive infrastructure to drive top-line revenue, or is each on-site team executing a different strategy?
- Do both sales and operations work together to keep occupancy high and build a resident-centered culture, or is there a disconnect between what’s promised and what’s delivered?
- Do team members follow defined, proven processes to drive revenue, or do they fail to implement their organizational training and industry best practices?
- Are team members accountable to predefined metrics, or are performance evaluations based on personality or other characteristics that have nothing to do with achieving growth goals?
If you find that the last descriptions fit your prospective communities better than the first, your new properties may have serious occupancy and stability struggles.
Ensuring Growth with a Turnkey Solution
At Bild & Company, we understand the unique challenges your organization can face to grow occupancy during acquisitions.
For senior housing acquisitions, we offer our years of expertise to…
- Take ownership of the sales and marketing departments of the properties you’re acquiring.
- Train your current team members to drive revenue growth.
- Produce tangible occupancy gains in 60 to 90 days of our initial starting date.
Don’t settle for revenue loss.
Instead, rely on Bild & Company to provide customized solutions that grow your portfolio during a leadership transition.
To discover more about our solutions for acquisitions, get in touch with us online, or call us 1-800-640-0688 and ask for Liz Simpson so you can book a time to speak with our CEO, Traci Bild, about your growth goals.
