Home / The Model
The term sheet gets written around the deal.
The operating playbook never changes: value the facility from its own records, settle the debt at closing, and keep a working team inside the building until the numbers hold. The structure changes with every deal, because every situation is different.
01 — The structures
Built to close
Most deals take one of three shapes.
The full buyout
The clean break. We buy the facility whole. Debt comes out of proceeds at closing, the change of ownership is filed so the license and payer contracts carry over, and you leave with a number you can defend to your own accountant.
The equity rollover
The comeback. We buy a controlling stake, clear the debt, and run the turnaround. You roll equity into the recovery, and the equity means something again because the facility does.
Everything in between
A staged buyout. A seller note bridging a valuation gap. The real estate in one deal and the operations in another. Any structure that moves a good facility into capable hands, at a price both sides can defend, is worth writing.
Diligence and honesty are the constants. When a facility cannot be saved, that conclusion is delivered plainly, in writing, at no charge.
02 — The phases
What happens, in order
Four phases. Each one has a job.
The look · weeks 1–2
We come to the facility and walk it. Units, nursing stations, intake calls. We pull twelve months of census, collections, and turnover, plus the complete debt schedule. Then two numbers go in writing: the baseline you will measure us against, and the price, whole or stake. You are welcome to get a second opinion on both.
The close · weeks 2–6
Money moves in a fixed order. Payroll is protected first. Debt gets retired or settled, advances included, and the liens come off. Vendors are brought current. The change-of-ownership filings and payer enrollment run in parallel, so nothing lapses while the deal crosses.
The rebuild · months 1–9
Our team installs a daily operating rhythm. Intake gets a single owner. Documentation gets tightened from admission to clean claim. Your staff stays; in our experience they know exactly what is broken and have been waiting for someone to ask.
The hold · ongoing
Value follows census, retention, and collections. If you rolled equity, we grow it together and sell only if we both say so, at the rebuilt valuation. If you sold outright, you were paid at closing, and this phase is us keeping our word about the place you built.
A word about the economics: distressed facilities sell at distressed prices, and Weatherly buys at those prices. The other side of the trade is a valuation you can check line by line, a debt stack settled at closing, and, for owners who roll equity, a real share of the recovery.
03 — The math
A 60-bed illustration
Why a quarter of a healthy facility can beat all of a dying one.
This is the rollover case. If you sell outright, your math is one number at closing. The example assumes the owner keeps 25%; the real split is negotiated deal by deal and stated in your written proposal.
Today, 100% yours
buyer feels like paying
Rebuilt, your 25%
Illustrative only. Census, margins, and multiples vary by market, payer mix, and level of care. The shape holds under any inputs: a real share of a facility that works is worth more than all of one that does not.
04 — Selectivity
When we pass
Most opportunities get declined.
An embedded operating team can only hold a few facilities at a time, so the answer is often a fast, honest no. The usual reasons:
The market or the building cannot support a turnaround. Money does not fix a facility in the wrong place with the wrong license.
The ask is a loan. Weatherly buys ownership, whole or in part; owners looking for debt get pointed to lenders who do it well.
The numbers cannot be verified. An offer requires access to census, billing, payroll, and the full debt schedule.
The plan requires cutting care to make a margin. Weatherly will not run a facility it would not send someone to.