Care market


Selling your care home in a challenging market


Daniel Goodman, development director and partner at The Harkalm Group, explains why the sale of a care home requires a strategic and sensitive approach


A recent survey by business sales advisor Christie & Co revealed that two in five care homes may be at risk of closure due to rising operating costs, with employer National Insurance Contributions (NICs) emerging as a particular issue. Combined with mounting energy bills, food prices, and increases to the National Living Wage, such pressures are forcing many care home operators to reassess their long-term sustainability. For some, selling the business – whether


to retire, consolidate, or redirect investment – has become a serious and sometimes unavoidable consideration. Yet, unlike selling a typical commercial or residential property, selling a care home requires a uniquely sensitive and strategic approach. The implications for residents, their families, and team members mean that confidentiality, timing, and professionalism are critical at every stage.


Unique challenges Selling a care home is not simply a financial transaction. It involves an ethical and


emotional dimension and a careful approach to managing the sale from an operational perspective. Residents and their families place considerable trust in the care provider, and even early rumours of a potential sale can lead to uncertainty, anxiety, and reputational damage. When a care home is placed on the open


market, details of the sale quickly become public. This can cause staff to worry about job security, potentially prompting valued employees to look elsewhere. Families may begin exploring alternative arrangements for their loved ones, and prospective residents may hesitate to enquire. In some cases, occupancy rates can fall sharply, reducing the business’ profitability and value. Even if the sale does not proceed, the


impact can be long-lasting. A once thriving operation can start to decline, making it far harder to achieve a fair price in the future. For this reason, many operators choose to pursue a discreet sale, where the process is handled confidentially and only shared with stakeholders once a concrete agreement has been reached.


Discreet sales A discreet or off-market sale allows care home owners to maintain stability while exploring their options. Rather than advertising publicly, the property is introduced privately to a small number of investors or developers known to have a genuine interest in similar assets. This approach ensures that the process


remains confidential until completion is imminent. It also means that team members and residents are not unsettled by any speculation. Further, the operator retains full control over communication and transition planning and the sale timeline can be managed flexibly to support continuity of care. This discreet approach protects the seller’s


reputation while achieving a competitive price for the asset.


Working with operators A successful care home sale depends not only on finding a buyer but also on identifying the right type of buyer – one who understands the regulatory environment,


February 2026 www.thecarehomeenvironment.com 33


William - stock.adobe.com


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