Prepare to Sell…

As the saying goes Location, Location, Location….

When selling a private property or a care home the above statement will remain true. However when selling a business in the current economic climate may we ask you to consider another new phrase…

Preparation, Preparation, Preparation…..

It was all so easy over the last 5 years to sell your care home: simply decide you want to retire or concentrate on other businesses, maybe just have an easier life. You picked up the phone to a few agents, chose one and hey presto! Your care home was on the market and a few viewings later you had SOLD!...

How times have changed.

First though be reassured – the market for selling is still active and there are many experienced, well funded purchasers out there. However, gone are the days of simply putting your care home business ‘on the market’.

Given today’s economic issues purchasers and their bankers are becoming even more cautious. To achieve a maximum sale price for your business there are some key factors which you must absolutely give serious consideration to.

Is your business in good shape to sell?

I am not advocating a full refurbishment or redecoration program; but do ensure routine maintenance is up to date and present the home to any potential purchaser at its best. First impressions count and tidying up the garden areas and making good any items that need repairing doesn’t take money just a bit of time and effort. It should go without saying but keep every room spotless and neat: the potential purchaser may not be a care home Inspector but they will wish to look at every bedroom and WC!

Occupancy levels and referrals vary throughout the country but do endeavour to sell when the care home is full or at its maximum occupancy.

A good specialist care home agent will assist you in collating all the pertinent information for sale prior to marketing the business. A little time spent at this stage will mean that when interested parties view they can make a speedy judgement regarding their potential investment. In the current climate banks will require maximum information up front in order to formulate a banking facility for their client.

Work with your accountants to bring audited or certified accounts up to date and prepare management accounts. Even if you don’t usually do these, most banks now need to see something more up to date than last year's accounts. You could wait until these are requested by a potential purchaser but then your accountant may not have time to do them immediately and this could cause a delay as finance for the purchase may not be sanctioned until up to date figures are made available.

Maintain an up to date weekly fee income list and collate information pertaining to staff including hourly rates, staff rotas, and monthly staff costs. Staffing is the highest expenditure within a care home and purchasers will require evidence that rotas are adhered to and staff costs are controlled within certain budgets.

When choosing which professionals to work with when selling (the business transfer agent, the accountant, the lawyer), select a specialist in care homes sales. Selling a care home really is unique; you certainly would not want to undertake it alone. Make sure you choose someone with experience, its important! Liaise with your ‘team’ early in the process and set clear guidelines regarding your expectations. If the team work stogether then the often lengthy sales process can run smoothly and in a timely manner.

During the process you will almost certainly want to be sure that everything is happening confidentially. Nothing causes concern and questions from staff and service users more than uncertainty. Potentially even worse, if the anticipated sale were to fall through for any reason, maybe casting doubt on the business or its performance. Good agents experienced in care home sales understand confidentiality so well.

Once you have agreed an acceptable offer in respect of your business, further preparation will be required as you work with your agent and lawyers to satisfy the purchasers and their lenders legal and business requirements.

Preparing a business for sale makes it an easier business to sell. Get your ‘house’ in order and any potential purchaser will have their reasonable questions readily answered allowing your sale will complete so much quicker.


A T Allen.

Prepare to Sell…

As the saying goes Location, Location, Location….

When selling a private property or a care home the above statement will remain true. However when selling a business in the current economic climate may we ask you to consider another new phrase…

Preparation, Preparation, Preparation…..

It was all so easy over the last 5 years to sell your care home: simply decide you want to retire or concentrate on other businesses, maybe just have an easier life. You picked up the phone to a few agents, chose one and hey presto! Your care home was on the market and a few viewings later you had SOLD!...

How times have changed.

First though be reassured – the market for selling is still active and there are many experienced, well funded purchasers out there. However, gone are the days of simply putting your care home business ‘on the market’.

Given today’s economic issues purchasers and their bankers are becoming even more cautious. To achieve a maximum sale price for your business there are some key factors which you must absolutely give serious consideration to.

Is your business in good shape to sell?

I am not advocating a full refurbishment or redecoration program; but do ensure routine maintenance is up to date and present the home to any potential purchaser at its best. First impressions count and tidying up the garden areas and making good any items that need repairing doesn’t take money just a bit of time and effort. It should go without saying but keep every room spotless and neat: the potential purchaser may not be a care home Inspector but they will wish to look at every bedroom and WC!

Occupancy levels and referrals vary throughout the country but do endeavour to sell when the care home is full or at its maximum occupancy.

A good specialist care home agent will assist you in collating all the pertinent information for sale prior to marketing the business. A little time spent at this stage will mean that when interested parties view they can make a speedy judgement regarding their potential investment. In the current climate banks will require maximum information up front in order to formulate a banking facility for their client.

Work with your accountants to bring audited or certified accounts up to date and prepare management accounts. Even if you don’t usually do these, most banks now need to see something more up to date than last year's accounts. You could wait until these are requested by a potential purchaser but then your accountant may not have time to do them immediately and this could cause a delay as finance for the purchase may not be sanctioned until up to date figures are made available.

Maintain an up to date weekly fee income list and collate information pertaining to staff including hourly rates, staff rotas, and monthly staff costs. Staffing is the highest expenditure within a care home and purchasers will require evidence that rotas are adhered to and staff costs are controlled within certain budgets.

When choosing which professionals to work with when selling (the business transfer agent, the accountant, the lawyer), select a specialist in care homes sales. Selling a care home really is unique; you certainly would not want to undertake it alone. Make sure you choose someone with experience, its important! Liaise with your ‘team’ early in the process and set clear guidelines regarding your expectations. If the team work stogether then the often lengthy sales process can run smoothly and in a timely manner.

During the process you will almost certainly want to be sure that everything is happening confidentially. Nothing causes concern and questions from staff and service users more than uncertainty. Potentially even worse, if the anticipated sale were to fall through for any reason, maybe casting doubt on the business or its performance. Good agents experienced in care home sales understand confidentiality so well.

Once you have agreed an acceptable offer in respect of your business, further preparation will be required as you work with your agent and lawyers to satisfy the purchasers and their lenders legal and business requirements.

Preparing a business for sale makes it an easier business to sell. Get your ‘house’ in order and any potential purchaser will have their reasonable questions readily answered allowing your sale will complete so much quicker.


A T Allen.