Lamont Johnson Care Home Services
The services we offer in this specialised sector includes free market advice, realistic valuations, provision of knowledge on statutory regulations and requirements and coherent liaison with other professionals involved in any transaction.
In addition to our standard Care Home selling and buying services we also offer a land development service which can be viewed by clicking on the Land Services button below.
Selling a Care Home
We know only too well that most private Care Home businesses represent many years and perhaps generations of hard work and continuous care on the part of its owners.
Care Home owners looking to employ an exit strategy will be aware that this requires serious planning and sound advice from an experienced agent who places great emphasis on:
- Confidentiality being maintained at all times throughout the sales process
- Maximising the value of your Home
- Having a one to one relationship and dialogue with the Principals of the selling agency
An early telephone conversation with us involving the process, the timescales and possible values may well lead to further discussions, all of course at that stage, without obligation on your part.
Our principal Directors have been appraising the value of and selling care homes for 39 and 33 years respectively, a combined 72 years of experience in this very specialised field.
There are no upfront fees.
How is my business kept confidential during this process?
Our number one goal is to keep everything about the business confidential. If employees, residents’ families or competitors become aware that the business is for sale, it could have a negative effect on the business and/or the transaction. In order to keep your business confidential we go through a qualifying process with each and every potential buyer that may have an interest in your Home.
Once a potential buyer contacts us, we automatically ask them to complete a detailed buyers registration form to allow us to make a judgement as to their suitability to obtain further information or indeed, view the Home.
How much is my Home worth?
Since every Home is different we use multiple methods and procedures to give our clients a range of ideas of what their business may be worth. Business valuation is not always as scientific as you may think. The business valuer uses assumptions based on his knowledge and experience in the market place, as well as his familiarity with similar businesses.
How long will it take to sell my Home?
Typically a transaction can take anything from 30 days to 6 months to complete, from the date that a sale is agreed. The variables include such things as whether it an asset or share sale, whether funding is involved, and whether the lawyers on either side of the transaction are experienced in Healthcare transactions. All of these factors can have an impact on timing.
Buying a Care Home
Buying a Care Home today is a vastly different and more difficult exercise to doing so say 25 years ago.
However, despite the economic downturn in 2008, one of the sectors that has remained buoyant and fairly immune, has been the Long Term Care sector.
Over the past two years, much interest has been generated at the higher end of the market from investors looking for good returns and this in turn, has had an uplifting effect on demand throughout the sector.
There are many factors that need to be taken into consideration when purchasing either as a first time buyer, as an existing Home owner or as a corporate buyer. Such factors include:
- Location and supply/demand – such questions to be asked as do you have experience in the sector or are you relying on the existing management structure within the Home?
- Regulation – some may consider the sector as to be very heavily regulated nowadays, and prior to pursuing any particular acquisition, it is recommended that you check out the main bodies governing the U.K.
- England – Care Quality Commission
- Wales – Care and Social Services Inspectorate
- Scotland – Care Inspectorate
- Ireland – Registered Quality Improvement Authority
- Competition – it is important to analyse the amount of local competition, the number of beds and whether there are any new build developments soon to present competition to the home that you have targeted.
- Profitability – funding has become and remains difficult, for both first time buyers and existing operators. It is important to see evidence of a good trading history for the Home. Such information will be crucial in enabling your bank or selected specialist finance broker to assist you in sourcing funding for your acquisition.
- Valuation – once your target Home transaction has been agreed, a valuation will be required by your funding source. All the banks have a panel of specialist approved valuers for the Healthcare sector.
- Deposit – This will depend largely on whether you are a first time buyer, or an existing operator. If you are a first time buyer, nowadays, most banks will be looking for a cash contribution towards a transaction of up to 40% of purchase price and may /may not lend more if there is further property security available.
- Specialist Solicitors – There are a number of specialist solicitors located around the UK who have targeted the Care Home sector as their specialisation and each one of them quotes competitive terms whether you are buying an asset or completing a share transaction. Further contact details for these connections are available once you are close to getting a transaction agreed.
If you do wish to register with us as a potential buyer, please register here or alternatively, call us directly on 01937 842758.
Please be aware that in order to maintain strict confidentiality, we do not normally provide addresses and exact locations of any Care Home that we have for sale.
If you wish to view a Home, please call us to make the necessary arrangements, we will be only too happy to assist. We do ask however, that you maintain the utmost discretion whilst viewing a Home as staff and residents are invariably unaware that the business is for sale.