Assisted Living / Nursing Home 10-Year Startup Financial Model
Originally published: 04/08/2022 14:21
Last version published: 22/08/2022 08:28
Publication number: ELQ-18997-3
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Assisted Living / Nursing Home 10-Year Startup Financial Model

This Excel model is built specifically to let the user forecast cash flow and general financial statements of opening and running an assisted living facility.

Description
Whether it is an assisted living facility or nursing home, the logic and bottom-up assumptions required to create a comprehensive financial forecast are similar.


At a basic level you have acquisition or development costs, a room count with different room rates, and a staff to run things. This model has done a really good job at already having the primary name slots input as it was built from someone that worked in an assisted living facility. It sort of is a mix between traditional real estate and a startup business.


Revenue:
 - Driven off 5 room types with 6 potential tiers of care add-on prices for each room type and the count of each
 - Define initial occupancy, improvement in occupancy, and stabilized occupancy
 - Define other ancillary income per month
 - Define annual growth rate of room rates


Expenses:
 - In-house staff (start month, count, monthly cost, payroll tax/benefits % for each staff type) lots of slots here
 - Outsourced therapy teams and their confugration
 - Other professionals (doctors/audiologists/dentist/et...) that have a fee and their own cost configuration
 - General fixed cost schedule
 - Capex schedule for depreciable purchases
 - Development / acquisition costs (6 sections with 20 slots each so costs can be anayzed easily)


Debt:
 - Select if debt is to be used or not
 - A % of all negative cash flows up to a defined month will flow to a construction loan, which can accrue or apply interest monthly
 - Interest-only loan rolls into a p+i at a defined month
 - Option for a ReFi also available at ad efined month
 - All the logic is dynamic between these three debt sources


Output Reports:
 - Monthly and Annual Income Statement, Balance Sheet, Cash Flow Statement
 - Annual Executive Summary that has high level items all the way to final cash flow
 - DCF Analysis of project, owner/operator/GP, investor/LP
 - Option for a separate distribution schedule to be used that is based on IRR hurdles for the LP if this is a joint venture
 - Lots of visualizations
 - Capitalization Table (detailed for insiders / outsiders) share count / fully diluted ownership / contribution / distribution summary by month


On a per project, per operator, and per investor basis, you will see NPV, ROI, equity multiple, and general total invested / total returned summaries.


Terminal value is optional and if included then an EBITDA multiple is used based on 12-month trailing figures.


This is a true financial simulation and is a great tool to test out feasibilities and worst case / best case scenarios as welll as the resulting cash required to survive and potential return on investment.


Everything (IRRs / contribution / distribution) is driven off a granular monthly schedule.

This Best Practice includes
1 Excel model and 1 Tutorial Video

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Further information

Forecast financial requirements of operating an assisted living facility.

Up to 5 room types and 6 tiers of care with full staffing.


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