Growing a business is exciting, but doing it too quickly can create challenges.

That was the situation facing Aaron Osgood, the owner of Living Hope Homes. In a very short amount of time, he expanded from one to 11 assisted living homes, but the growth came with a price. The expansion had been financed without traditional bank lending, leaving the owner with significant debt. To get himself in a better position, he decided to sell three of his newly purchased locations to pay off the debt. 

That's when he reached out to Calhoun Companies agents Manoj Moorjani and Katie Black.

“The goal wasn't to walk away from the business,” explains Moorjani. “It was actually the opposite. The owner wanted to keep growing, just in a healthier, more sustainable way.”

A Lot of Interest... and the Right Buyer

The assisted living market continues to attract strong buyer demand, and this deal was no exception. More than 25 prospective buyers signed confidentiality agreements to learn more about the opportunity, and after several meetings, the seller found a buyer who felt like the right fit - a pastor whose wife is a registered nurse. It was a combination that gave everyone confidence the homes, and residents, would be in good hands.

Navigating a Complex Transaction

Because the owner had all 11 homes on a single tax return, financial records had to be carefully separated to reflect only the three businesses being sold. It also included real estate owned by a separate party, and required a lengthy state licensing approval process before closing could happen. Fortunately, that's where experience makes a difference.

Throughout the process, Calhoun Companies worked closely with the lender, attorney, accountant, and everyone involved to keep the deal moving toward the finish line.

Selling Less to Gain More

Ultimately, the sale generated $3.6 million, allowing Aaron to pay off his debt, improve cash flow, and focus on growing the rest of his business at a more reasonable pace.

“Not every business owner wants to sell everything,” explains Moorjani. “Sometimes the right strategy is selling just enough to create the next opportunity.”