Healthcare Bankruptcy

Financial distress in a senior housing or skilled nursing operation carries stakes that go well beyond the balance sheet. Resident care, staff livelihoods, and regulatory obligations are all in play. Sherman & Roylance brings specialized brokerage expertise to these situations, helping debtors, creditors, and the professionals who advise them achieve the highest and best price while keeping the process orderly.

The Section 363 advantage

Section 363(f) of the Bankruptcy Code is a powerful resource for the debtor, allowing the operations to be sold free and clear of liens, claims, interests, and encumbrances. A clean sale of this kind can preserve enterprise value that would otherwise erode, and it gives buyers the confidence to transact. Realizing that value depends on disciplined valuation, broad marketing to qualified buyers, and an advisor who understands both the asset class and the court process.

How S&R supports distressed situations

• Comprehensive financial analysis of the operation and its portfolio
• Investment analysis and portfolio valuation
• Broker opinion of value, provided at no cost to the estate
• Working alongside the debtor and the creditors’ committee as the business broker for portfolio valuation, marketing, and sale of the facilities
• Facility-by-facility analysis of potential upside, sale price range, and exit strategy

A trusted intermediary

In a bankruptcy, the broker sits between parties whose interests do not always align. S&R’s role is to bring clarity and credibility to the valuation and an efficient, well-run marketing process to the sale, so the estate, the creditors, and the eventual buyer can all move forward. The firm’s deep senior housing relationships mean that even distressed assets reach the buyers most likely to recognize their value. If your organization, or a client’s, is navigating a senior housing bankruptcy, Sherman & Roylance can help you understand the options and pursue the best achievable outcome.

Frequently Asked Questions

What is a Section 363 sale?

It is a sale under the Bankruptcy Code in which a facility or portfolio is sold free and clear of liens, claims, interests, and encumbrances, which can preserve value and give buyers confidence to transact.

Is the broker opinion of value really free to the estate?

Yes. S&R provides its broker opinion of value at no cost to the estate.

Do you work with creditors’ committees as well as debtors?

Yes. S&R serves as the business broker working alongside both the debtor and the creditors’ committee.

Can you handle multi-facility portfolios in bankruptcy?

Yes. We provide portfolio valuation, marketing, and sale services, with facility-by-facility analysis of upside, price range, and exit strategy.