Buying or selling a placement or care-management business

List the service, client and payer

Describe each service in plain terms. A placement business may introduce people to housing or care providers under fee agreements. A care-management practice may assess needs, plan support, coordinate services and advocate for a client. Do not combine those activities simply because both involve older adults and their families.

For each line, state the person served, who requests the work and who pays. Those may be different people or entities. Read the agreements and actual case process. The client's needs and choices should remain clear even when a family member or provider funds the service.

ALCA describes assessment, planning, coordination and advocacy within its care-management framework. (Source: ALCA service explanation) That description does not prove the target's qualifications or make every senior adviser an Aging Life Care Professional. Review what the people involved actually do and may represent.

List the entities, locations, staff, contracts, brands and systems in the proposed sale. List any franchise, referral network or related service business. The buyer needs to know which assets and rights are included and which work depends on an individual or another entity that will not transfer.

The placement and care-management buyer guide examines client, payer and professional roles. The seller guide explains a founder’s service exit. Connect these distinct reviews with the business agreement. Identify who will perform continuing work and which client choices remain open before treating the proposed handoff as a settled arrangement.

Keep payment models separate before reviewing earnings

Build separate revenue schedules for placement fees, hourly work, ongoing service packages and other activities. List the event that earns each fee and the work still owed. A provider-paid referral, a family's retainer and a professional hourly invoice need different evidence before they can support revenue.

Reconcile the schedules with financial statements, tax records, invoices and bank evidence. Explain timing differences and credits. The accounts may combine several activities under one revenue heading even when their costs and risks differ. A clear split helps the buyer test each business model rather than rely on a blended margin.

Review shared costs only after confirming the proposed deal structure is supportable. A forecast may assume common staff, branding, websites or referrals that are restricted by professional standards, law or contract. Financial savings do not establish permission. Keep legal and professional review ahead of a combined operating budget.

Review law and professional standards as separate layers

List the jurisdictions, services and people involved. Washington's referral-agency chapter has defined scope and exemptions, plus duties addressing insurance, nonexclusive relationships, disclosures, records and provider checks. (Source: RCW 18.330) Apply the actual provisions instead of presenting that state as the rule for every agency nationwide.

The placement transfer guide shows how to match records to the buyer. Its Oregon example checks the business name on registration, insurance and screening records. A founder’s personal credentials need their own review.

ALCA's standards address accurate individual credentials, relationship disclosure and a referral-fee prohibition. They also address independent and separate operation of related referral-fee businesses. (Source: ALCA standards 21–23) These are professional association standards, not a universal state placement license. Disclosure alone does not cure a prohibited fee arrangement.

Ask the relevant advisers to assess who owns each entity, performs services, receives payment and holds credentials. Review relevant employment, professional, consumer and privacy duties. A contract called consulting or marketing should not be assumed to avoid rules that depend on the actual work and payment relationship.

Keep the conclusions specific. A permissible placement business is not automatically a permissible care-management practice structure. An individual's membership does not extend to every owner or employee. The buyer should be able to explain how each activity can continue under the proposed team and terms.

Trace placement fees through the full event cycle

Follow an inquiry through intake, disclosure, provider options, client choice, the qualifying event and billing. Read the actual agreement for what earns the fee. A lead, introduction, tour, move-in and completed payable case are different stages. Do not price all CRM entries as completed revenue.

Consider a fictional placement business permitted to charge the fees in this example. Eight earned fees of $4,000 produce $32,000 before final credits. Documented final credits for those same fees total $5,000, with no other fee adjustments assumed. This is an arithmetic example, not a finding that any actual fee is lawful.

The fee calculation is 8 × $4,000 = $32,000, then $32,000 − $5,000 = $27,000. Collections may arrive in another period. The result excludes operating costs and does not establish profit, a market commission or the refund required by a specific law or contract.

Use the actual final adjustments when reviewing a target. Explain why credits arose and whether further disputes remain. A pipeline forecast needs separate evidence about likely completion, permitted fees and cost. Future cases should not be combined with earned fees as though they were equally certain.

Read refunds, payment limits and unfinished duties

Review both contract terms and the law that applies for refunds, cancellation and disputed fees. Washington's chapter addresses specified events within the first 30 days of supportive-housing admission using a prorated approach. It separately restricts remuneration for referrals involving the stated medical-assistance payments. (Source: RCW 18.330) Neither rule should be generalized beyond its scope.

Reconcile the refund history with invoices, payments, credits and claims still open. State who paid the fee and who is owed any refund. A cash receipt can be followed by a later duty. The buyer needs a supported balance schedule rather than an assumption that completed move-ins carry no remaining exposure.

List retainers and service packages separately. Compare money received with work performed, remaining commitments and refund rights. Have the accountant and counsel assess the actual treatment. The parties should agree what cash and duties transfer without treating unused client funds as a free source of purchase financing.

Assign a person to handle pending cases and post-closing adjustments. The contract should address access to evidence, communications and payment processing. A seller's brief introduction does not resolve who handles a disputed referral fee or unfinished service request several weeks later.

Test provider information and client choice

Read how the agency gathers and updates information about providers. Review the basis for statements about services, licenses, availability and suitability. A provider's marketing description may not establish current capacity or the right care for a specific person. Required checks and qualified judgment need their own evidence.

Washington's law distinguishes provider information, enforcement-status searches and disclosure to the client. (Source: RCW 18.330) Review the actual requirements and records within that jurisdiction. A list of contracted providers should not be described as proof that every option has been fully evaluated for every client.

Examine disclosures and potential conflicts. Establish whether the client understands who pays the agency and what relationships may affect the options presented. Read the relevant professional standards alongside state law. A signed disclosure can be evidence of communication without proving every payment arrangement is permitted.

Preserve the person's ability to choose. A provider contract or founder relationship cannot guarantee that clients will select a specific service. Review complaints and lost cases for patterns that require action. The business should be assessed through completed work and supported relationships, not ownership language about people's future decisions.

Explain professional time and service economics

Map total work time before calculating billable utilization. Include documentation, travel, coordination, supervision, client calls and administration where performed. Some necessary work may not be separately billable. A high ratio is not automatically evidence of good service or a sustainable workload.

Consider a fictional week with 30 total working hours, of which 18 are supported billable hours under the service agreements. At an invented billed rate of $150 per hour, the gross billed amount is $2,700. The other 12 working hours remain inside the total and may still create cost.

The billable share is 18 ÷ 30 × 100 = 60%. Gross billed fees are 18 × $150 = $2,700 before credits, collection timing and operating costs. The figures are teaching inputs, not a recommended caseload, staffing model, rate or profit target.

Use matching time periods and definitions when comparing staff or practice results. Ask whether billing records support the hours and whether the service terms permit them. A larger invoice total can hide uncollected balances or omitted labor cost. The AR aging guide helps separate age from the reason a fee remains unpaid.

Replace founder duties with qualified coverage

List the founder's service, management, marketing, supervision and emergency duties. Compare the role map with schedules, time records and actual practice. A founder may bill clients while also performing work needed to keep the business running. Both kinds of work belong in the replacement plan.

The owner replacement guide helps distinguish an earnings adjustment from the cost of necessary labor. Price suitable cover and relief without double counting. A buyer who will perform some duties still needs the required skills, authority and time. A lower salary assumption alone cannot establish that plan.

Verify individual licenses, certifications, memberships and representations through the relevant bodies. State who can provide each service after closing. Buying a company name or website does not transfer a person's credentials. Review continued use of a founder's name, biography and endorsements for accuracy and permission.

Plan the response if a key professional leaves or is unavailable. Assign client communication, urgent issues and backup coverage. A seller's informal willingness to answer questions is not the same as contracted support. The incoming team should understand the limits of any transition arrangement and fund the work it must take over.

Assess marketing and relationships without overstating transfer

Identify ownership and access rights for domains, phone numbers, advertising accounts, software and brand assets. Review platform and vendor terms, consent and required changes. A login handed to the buyer does not by itself settle lawful access or the right to use every item in the system.

Review sources of inquiries, costs and completed outcomes over consistent periods. Separate current client work from old contacts, unqualified leads and inactive accounts. A large database may contain little current demand. It also may carry restrictions on use that the buyer must honor.

The referral concentration guide helps distinguish the source of introductions from the party paying a fee. A practice can rely heavily on one professional relationship even when its clients are diverse. Assess the founder's role and the evidence supporting continuity without treating retention as certain.

Keep growth assumptions separate from proven results. List the staffing, marketing spend, lawful arrangements and service capacity needed for added cases. Higher inquiry volume does not automatically create billable work. A forecast should explain both completion assumptions and the cost of serving people well.

Build a lawful records and communication plan

Pre-NDA outreach excludes financials and identifying business, owner, exact location, client, staff, vendor and referral details. Later commercial review follows screening and authorization. Small case groups and coded records can still identify people. Removing a name alone does not establish de-identification. (Source: HHS guidance)

An NDA does not authorize every disclosure of sensitive records. Assess the actual legal basis, consent duties, permitted purpose and safeguards. Apply minimum necessary where required and recognize its exceptions. (Source: HHS minimum necessary) State, professional and contract duties can still matter when a specific HIPAA rule does not apply.

Use the records custody guide to assign storage, access, retrieval and ongoing requests. Determine who keeps required historical records and how authorized users can obtain them. Do not equate a successful database export with a complete, lawful or usable handoff.

Prepare accurate communication for clients, staff and providers under the actual duties. Explain contacts, available services and choices without promising universal retention or uninterrupted access to the founder. The confidential-sale guide connects controlled disclosure with required communication and service continuity.

Reconcile value with cash and remaining work

Review supported earnings separately by service line, then reconcile shared costs under a permissible structure. Identify old receivables, disputed fees, retainers, refunds and unfinished services. These affect both price and cash needs. A multiple applied to blended revenue cannot explain them.

The placement fee exercise uses one fictional prepaid contract to separate completed work from an unused balance. Its terms define when the fees are earned. The whole deposit does not become income from completed services. Keep that cutoff visible when assessing earnings and discussing who will handle the remaining work.

Build a dated funding plan for payroll, vendor bills, insurance, marketing and collection delays. Specify which party receives old fees and handles later adjustments. The buyer needs enough funds and qualified capacity for assumed duties. A positive annual earnings figure does not show when cash is available.

SBA's buying-business guidance calls for reviewing the full investment and source documents with suitable advisers. (Source: SBA) That general framework does not confirm financing or professional eligibility. Use target-specific evidence and lender terms before relying on a funding assumption.

Compare offers by what they actually require: price, timing, funding, seller work, retained risk and conditions. Explain any future payment tied to service or referral outcomes with qualified legal review. A promising headline price may depend on obligations or events that the seller does not control.

Make the first operating week specific

The placement and care-management diligence checklist turns the overview into evidence requests and decisions. Assign each key issue a reviewer, effect on cost and cash, and next action. Separate a missing document from a barrier to lawful fees or qualified service delivery.

Rehearse a week with fictional cases. Confirm who responds to an inquiry, explains fees, checks a provider, covers an absence, completes service notes and handles a refund question. Establish permissions and backup. The exercise should reveal missing duties without circulating private client records or making clinical decisions.

Use the seller guide and buyer guide for the broader sequence. Carry accepted duties into the first 90 days plan. A sound handoff leaves the incoming team prepared to serve clients under clear terms, suitable qualifications and a funded operating plan.