Since we represent approximately 30% of all announced seniors housing and nursing homes sold, we are often asked about timing and process as it relates to the sales process. We don’t believe in setting a bid deadline for a number of reasons.
1) It often limits the amount of groups that will be interested. Either they don’t have the time to meet the deadline or they prioritize other deals that they can come to terms quickly with the Seller and move to the next step.
2) Buyers typically wait until days before a bid deadline to actually look at a deal and do any level of due diligence. This leads to uneducated offers and little marketing feedback throughout the process. Momentum and competition are a seller’s best resource.
3) If a bid deadline is set when an offering goes to market and no offers come in, the offering is negatively impacted. At that point, buyers know the asset has no interest and then look to purchase at distressed levels.
4) The first offer is typically the best offer. Those buyers that drop everything to spend time on an opportunity should be rewarded with the opportunity. It doesn’t make sense to force a ready, willing and able buyer sit on the sidelines just waiting out a period of time before they submit an offer.
Buyers: Do you agree? Do you like when there is a set bid deadline? If you are one of the few that do, what do you think is the right amount of time to give to review the information?
Please contact Ryan Saul for a proposal to see what your assisted living, independent living, memory care or skilled nursing facility is worth.