Selling a care business is a complex process, requiring assistance from various care industry professionals along the way. For due diligence, it would be prudent to appoint a solicitor specialising solely in healthcare as they can ensure the smooth progression of a sale.
Due diligence involves potential purchasers looking at your business in detail, examining everything from accounts to rotas and leases. To simplify the process ensure your accounts are up to date and in order, beforeinstructing an agent.
Any preparation through addressing the following key areas will reap benefits.
- Upgrade or refresh your facilities.
- Ensure you’re on the best possible energy tariff and consider solar power or LED lighting.
- Prepare historical data showing trends in occupancy levels, fees and rates.
- If you are an ownermanager do you have a qualified management team to replace you?
- Strong relationships with key referrers such as Local Authorities and GP practices can help maintain occupancy levels.
- Does your business outperform other local providers? If not, identify and improve those areas that fall short.
- Valuations look at the maintainable earnings rather than ‘price per bed’. Do your accounts make it easy to establish this?
If there are any risks, the purchaser may require an indemnity, to cover their costs in resolving a problem. By identifying and resolving risks and concerns, before the sale proceeds, you can confidently give warranties, have control over resolving problems and limit indemnities.
