Selling your care home
ALISON TAYLOR, manager of the northern office of Pinkertons Specialist Healthcare Consultants, gives an insight into the world of healthcare deals.
The current financial woes may have convinced many that now may not be the time to be considering selling their care home business. However, with the industry faring better than a lot of other sectors, banks are still lending. Loan to Value (LTV) lending may have been reduced, but for those care home owners who do wish to sell, and buyers who have plenty of capital and experience in the sector, deals can and are being done.
Selling isn’t just about signing on the dotted line with an agent and picking up a (hopefully) big fat cheque a few short months later. Here are three golden rules:
Financial information and market appraisals
As a vendor, you will be required to provide substantial information on the business. Having up-to-date accounts and a firm grasp of where your business is from a financial standpoint is crucial, right from the start. It is, in part, how an agent will establish the likely market value of the business. Working out EBITDA (Earnings Before Interest, Tax, Depr