By Kent Kohn, MBA, CEPA, CM&AA and Tom Schramski, PhD, CM&AA
Volume 2 Issue 8, April 14, 2015
With the convergence of longer life expectancy, the insistence on higher life quality, and emerging consumer sophistication, the market for senior living services is evolving rapidly. The evolution is requiring that successful operations not only diversify their offerings (variations on traditional assisted living facility models), but also provide “value enhancers.” These requirements are necessary not only to attract customers, but also potential buyers who are looking beyond adjusted EBITDA and price per bed.
To maximize the value proposition for all parties, here are some developing trends to consider:
As we began, the potential customer base for senior living services is growing and is also increasingly aware of the value they seek. Entrepreneurial senior living service executives understand that by recognizing this sophistication, they can offer both stellar quality and attract desirable customers.
Kent has worked in the healthcare marketplace for over 25 years and has completed the requirements for the Certified Merger & Acquisition Advisor (CM&AA) credential, in addition to his Certified Exit Planning Advisor (CEPA) designation. His career began in health insurance and preferred provider organizations where he had a key start-up role in a regional employer healthcare coalition. Later, he became an executive involved in marketing and new business acquisition with various healthcare companies and was nominated for an ADDY award in 2012 in recognition of his expertise. As an independent consultant, he has assisted multiple business owners in enhancing their value as well as successfully advising them in the M+A process. His diverse experience, including the insurance marketplace, gives him a unique perspective on the evolving healthcare reform underway in the US.