Langworthy Company
Adult Senior Living Residential Care Consultant
Market Feasibility Study  - Adult Senior Living Market Study

Contact Us Business Tips Sales Help Business Links

Revised:  06/21/2010

Senior Living Market Feasibility Study

 

Consulting Services
Healthcare Consulting
Turnaround Management
Mergers & Acquisitions
Business Troubleshooting Tips
Clients
Company Info

 

 

"Since 1983, Langworthy Company has been diagnosing illnesses and prescribing remedies for ailing area companies."
   
Small Business News
     Cleveland, Ohio

 

 

Services

Mgt. Consulting

Sales Consulting

Strategy Advice

Business Plans

Marketing &  Corp ID

Merger/Acquisition

Company Evaluations

Turnaround mgt..

Training On-site

   

 

"Becoming a good
manager is not an
event but a process"

     Dr. Kenneth Blanchard

"People don't resist change, they resist transition."
    Dr. William Bridges

 

 

 

 

 

 

 

 

 

 

Skilled Nursing -  Assisted Living - Independent Living - Alzheimer

Adult Senior Living
MARKET FEASIBILITY STUDY

3 TYPES - Adult Senior Living Market Feasibility Study
There are three (3) different types of market studies available to investors, developers and operators of adult senior living residential care facilities including one or more of the following types of senior facilities: Independent Living, Assisted Living, Skilled Nursing or memory impairment (Alzheimer / Dementia). Each market feasibility study has a different use and application. For hotel conversion feasibility analysis a Comprehensive Market Study is best. An overview for each is provided below.

STUDY 1 STUDY 2 STUDY 3    

   Geographic Area Search
for Suitable Adult Senior Facility
Development Areas

  Preliminary Market
Feasibility Study
 

Comprehensive Market
Feasibility Study

   

STUDY 1: GEOGRAPHIC AREA SEARCH FOR SENIOR LIVING DEVELOPMENT OPPORTUNITIES
WHY USE THIS TYPE OF STUDY? A large Geographic Area Search (GAP Analysis) is intended to locate several communities over a large geographic area which statistically exhibit demographic and economic suitability for development of an adult senior residential care facility or skilled nursing home. Who Uses This Study? For example, an owner or developer of adult senior living facilities may desire to develop new facilities in a 3 or 5 digit zip code area. Our research will canvass the large geographical area. The research will weigh and prioritize the strength of various locations identified in the large research area. When research discovers a seemingly favorable location, we discuss the pros and cons of the analysis data for each location. Often the customer would subsequently authorize a Preliminary or Comprehensive Market Feasibility Study be conducted. This follow-up "second study" using either the Preliminary or Comprehensive Study explained in the next two sections below, forecast the possible profitability to develop a senior residential care facility in a favorable location discovered in this Geographic Area Search.

STUDY 2: PRELIMINARY MARKET STUDY
WHO USES TYPE OF STUDY? Owner/Operators of senior living facilities; developers; investors; real estate company; hospitality company with hotel or commercial property conversion. A preliminary Market Feasibility Study of a "specific location" in a city or community. A Preliminary Market Study is suitable as an economical way to provide initial financial insight as to the locations potential profitability. A Preliminary Market Study answers the initial question "Does this investment seem to make economic sense?" The elements below are provided.
 
bullet

Estimate senior demographic and economic viability of location

bullet

Preliminary assessment of key competition

bullet

Estimate demand for different types of housing (independent, assisted living, Alzheimer)

bullet

Estimate likely room rental rates for this location

bullet

Estimate room sizes and features; cursory brick & mortar considerations

bullet

Preliminary estimate of construction, facility startup and operational cost with financial forecast option

bullet

Option for preliminary estimated P & L to determine if sufficient cash flow and profitability exists for investors

          Call or Email us for pricing or more information

STUDY 3: COMPREHENSIVE MARKET FEASIBILITY STUDY
WHO USES TYPE OF STUDY? Any investor anticipating new facility development, expansion or refurbishing of an existing facility or hotel conversion. This study is also used as part of a loan package. A Comprehensive Market Feasibility Study using commonly accepted industry research norms is usually required by venture capital investors and lenders including HUD. This Comprehensive Market Feasibility study is more thorough than a Preliminary Study utilizing extensive on-site analysis and surveying by researchers. Hotel conversions also require a high degree of analysis. The accuracy and validity of market research data is very high and includes intrinsic charts, analysis, forecasts, room size and amenities recommendations, timetables to achieve breakeven and 10 year P & L exhibiting EBITDARM. This study can be provided to architects to prepare floor plans and elevations for submission to local zoning and department of health as well as to solicit bids from general contractors.

 
bullet

Area Analysis: Market trends; physical & psychological barriers; traffic pattern constraints

bullet

Site Analysis: Estimate senior demographic and economic viability of location

bullet

Demographic Trends: Senior populations, current and future, forecast needs & wants

bullet

Senior Housing and Local Market Conditions and Future Trends:

bullet

Analysis of existing competitive units and planned Facilities:

bullet

Quantification of Senior Housing Demand by Product Type and Market Segmentation

bullet

Market Feasibility Report: Write-up and analysis with recommendations:
bullet

Room sizes and configuration

bullet

Different types of rooms warranted - Independent, Assisted, Alzheimer, Skilled Nursing

bullet

Recommended pricing including ownership & rental options, when applicable

bullet

Estimate demand for different types of housing (independent, assisted living, Alzheimer)

bullet

Amenities necessary for competitive advantage including architectural design

bullet

Timetable for facility to achieve positive cash flow / breakeven (absorption rate)

bullet

Profit & Loss 10 Year Forecast - Best & Worst Case Scenario
bullet

Breakeven - when it will occur - best & worst case

bullet

Construction and start-up cost estimates

bullet

Cash Flow and EBITDARM

bullet

Optional Consumer Research: To verify adult seniors willingness to move to this facility and why

Call or Email us for pricing or more information

Why Choose Us?
Langworthy Company and our associates have owned & operated or provided contract management services for many senior living facilities. In addition, we offer experienced advice in the areas of management consulting, finance and accounting, facility operation, sales marketing along with business improvement recommendations. We can provide meaningful assistance to help with selecting appropriate architectural design; facility construction oversight; establishing operational and accounting systems and procedures necessary for state licensing and business operation startup; marketing and sales of room rentals / room ownership; and facility contract management, if applicable. We also advice many hospital corporations evaluating senior living investments including conversion of hotels into adult senior residential care communities. If you are seeking a market research company who also is an owner operator having day-in and day-out senior living business experience please choose Langworthy Company as your Market Feasibility, Consulting and Development partner. Call or Email us today . . . without pressure or obligation.

Return to Healthcare Main Page

Brochure of Senior Living Services (PFD)

For more information
CALL JOE LANGWORTHY PERSONALLY

BACK TO SENIOR LIVING HOME PAGE

Request Specific Information

Telephone
330-477-5271
FAX
330-477-9944
Postal address
Langworthy Company Consultants
Canton, Ohio 44708-1154
Electronic mail
General Information: information@langworthycompany.com
Consulting Services: jlangworthy@langworthycompany.com
 

 

 

 

 

 Does this
investment
 make
economic sense?

 

 

 

 CONSULTING SERVICES

Click here to view senior living services

 

 IMPROVE MEDICAID
 MEDICARE

 REIMBURSEMENT

Our expertise can help skilled nursing homes improve reporting to enhance MDS scores and significantly increase Medicaid & Medicare reimbursements.

Senior living, adult senior, elder care, assisted living, independent living, market feasibility study, feasibility study, GAP Analysis 

   

 

 

 

 

 

Home Up Next

 

Copyright © 2010 Langworthy Company
LANGWORTHY COMPANY

Canton, Ohio 44708-1154
330-477-5271
CONTACT US information@langworthycompany.com


Creating High Performance Companies and People