Care Homes

Background & Market outlook

The lead up to the introduction of the National Minimum Standards in 2002 caused great uncertainty within the healthcare sector and both sales and prices achieved were adversely affected. However, the Government's subsequent decision that existing homes did not need to comply with the majority of the Standards removed this obstacle and the sector has witnessed a period of consistent growth in terms of both demand and prices achieved over the last 5 years.

For those thinking of selling a Care Home, the prospects are very positive in the current buoyant market, although it should be stressed that if sold outside of the multiples, your sale will require careful ‘packaging’ and marketing to satisfy the bank's valuation and to allow your buyer to raise sufficient funds to deliver on their offer.

What is my care home worth?

Care home valuations are generally based on the last 3 years accounts for the business and the projected performance for the next year. Other key factors include location, the potential to extend the business, the number of single / twin bedrooms and the most recent CSCI inspection report.

To discuss the sale or purchase of a care home in more details contact First City Business Brokers.