Eve-Anglica Apperley, Business Agent for Care at property advisors Christie & Co, gives her top tips for getting your care business market-ready
Preparing your care business for sale can be quite a stressful process, so it’s important to get the right team on board to help you fully prepare and avoid any unexpected hurdles.
Eve-Angelica in the Care team at Christie & Co, shares eight key things to consider when getting your care business ready for sale which can help you to maximise the proceeds and increase the value of the business, which will likely protect you from unexpected warranties.
- Appoint specialist advisers
First and foremost, appoint specialist advisers to help you on your sales journey. You’ll need a business broker, accountant, and solicitor, all of whom understand the nuances and complexities of the care market – this will make the process a lot smoother.
Whether you’re looking to sell in the next year or the next four years, it’s never too early to start thinking about selling. It’s best to engage your advisers early in the process so that they can work with you and your business over time to ensure it’s ready for sale and its value is maximised.
- Do you want to sell the asset itself or shares?
Assess whether an asset sale or share sale is best for you and your business. Ultimately, this is a decision that will be driven by the structure of your business and the tax implications.
In a share sale, the owner sells shares in the company and in an asset sale, the owner sells the physical assets.
We advise that you consult with your accountant at the outset to understand the best option for you and your business as this needs to be done well in advance of any sale process.
- Gather all necessary information before launch
Before beginning the marketing process and appraising your business, gather all necessary documents. This includes up-to-date accounts covering the last three years and occupancy/fee lists as well as an in-date Energy Performance Certificate (EPC), professional photographs, and floor plans to present the business in the best possible way.
- Confidential versus non-confidential marketing
Decide if you would like to confidentially or non-confidentially market your home. When determining the level of confidentiality, consider if you will communicate the sale to staff members. If so, decide who will be informed about the sale and how you will manage the situation if a staff member becomes aware. We dedicate significant time to vetting potential buyers and require Non-Disclosure Agreements (NDAs) when necessary. However, during viewings, staff may become curious and question the purpose of the viewing, making it essential to have plausible cover stories prepared.
- Be prepared to show your business off
You’ve invested a lot of time and money into your care home, so show it off and be proud. Ensure that the property is in the best condition and is presented in its best light.
Evaluate the strengths of your business and make sure to highlight these to your broker. A good example of this is demonstrating your strong management team who will handle the transfer of ownership well and still provide excellent care to the residents.
- Notify the Care Quality Commission (CQC)
If you are selling your care home via an asset sale, then your buyer will need to re-register the home with the CQC and this process can take up to four months from the application submission. Your broker and legal team can advise you on this process to ensure it runs smoothly.
If you are selling the business via a share sale and the registered entity is the limited company, then there is generally no need for CQC re-registration.
- Be realistic about the sales timeline.
It’s important to be realistic about how long it will take to sell your business.
Typically, a care business in the UK will transact between six and 12 months, but this can vary depending on the type of business you’re selling and the market conditions at the time.
If you have a personal deadline for the sale that you would like to try to meet, discuss this with your business agent.
- What do you want for the future of your business?
Think about who you would like to sell to and have takeover your business. This will help with marketing the business and will help you decide when the offers come in.
@ChristieCo
eve-angelica.apperley@christie.com
