Minnesota Assisted Living Community Sold | Blueprint strategically executes sale transaction between local market competitors
“This was a great turnaround opportunity for us to get involved in. We identified a distressed project, prepared a turnaround plan, and chose a local operator to execute it. All in all, we delivered a 3.7 multiple on invested capital over our 5-year hold period”,
said Alex Turik, General Partner at HAN Capital.
Blueprint was engaged by a Chicago-based private equity firm, HAN Capital, to deploy a strategic plan for facilitating the sale of Valleyview of Owatonna, an 86-unit, non-purpose built assisted living community in the Southeast Minnesota city of Owatonna, 40 miles west of Rochester.
Valleyview is positioned as the value-based market provider and its services are supported by Minnesota’s Elderly Waiver and CADI waiver programs that allow for sustainable state reimbursement for income-qualified residents. Having reached its peak occupancy in 2020 with only limited private pay residents, Valleyview was generating approximately $2.7 million and $640,000 in total revenue and EBITDAR, respectively.
Armed with real-time market knowledge of the local competition's M&A activity, Blueprint quickly approached that community’s new owner with the unique opportunity. Knowing that the competitor historically limited non-private pay resident move-ins, Valleyview represented a key, synergistic acquisition target to increase market share for both private pay and waiver-supported residents.
Blueprint’s direct marketing strategy paid off, securing a compelling offer that was ultimately accepted. Blueprint successfully structured the transaction that closed in March 2022 for a purchase price of $7.35 million.