Portfolio management
key items such as meals, heat, light and maintenance, if possible. Consider council tax and any grounds
maintenance and service charges that may apply. A potential purchaser will want to understand how the business performs and identify scope for improvements. Avoidance of key financial questions undermines confidence, so do your homework, make your accountant earn his fee by producing a clear set of figures that accurately reflects the business. Make sure you are absolutely clear on
your turnover and gross and net profit figures. Make available the most up-to- date management accounts and include occupant history for the past two years. Any confusion or ambiguity can unsettle prospective buyers and work against you in the negotiations. To guarantee a smooth sales process, always use an experienced business broker who specialises in care home sales and who can demonstrate recent sales success in your region.
Local capital Buyers are keen to learn you are plugged into the local care support networks such as GP surgeries and local authority services and that your relationships are strong and well maintained. A seamless transition for your residents is what everybody desires and this will be an important deciding factor for a buyer. Think about what you can do now to
foster closer contacts with community hubs if there is room for improvement. However, if your home is a beacon of community connection, be sure to shout about that and make sure the buyer is aware of their responsibility to maintain that position going forward.
Be energy wise In addition to the outlay for the property purchase, the buyer will be interested in running costs. Any care home proprietor will tell you, aside from salaries, food and PPE, the biggest bills falling on the mat each month come from heat and lighting providers. The elderly feel the cold and it is
essential for their health and well- being they are warm and comfortable. In addition to this there will be communications/telephony systems to power, laundry costs and maintenance inside and outside the building.
Before selling up, secure the most competitive energy tariff you can and ensure insulation is efficient. Bear in mind environmentally conscious buyers assess your property on its green credentials and you can appeal to them with renewable energy tariffs that minimise carbon emissions.
Is it Covid-secure? Attention will be focused on how well your establishment has adapted to meet new Covid constraints. Is the ventilation system adequate? Does the air conditioning need servicing or replacing? Do you have measures in place to support infection prevention and control? Many care home providers invested in garden rooms, visitor pods, gazebos and outdoor visiting areas during the pandemic – highlight to buyers how you have adapted and invested to meet the challenges of Covid compliance.
Kerb appeal It may seem obvious but do not neglect the appearance of your care home. You have made up your mind to sell so in your heart you may have already said farewell to the place – but do not let this show in tired exteriors, scruffy gardens and unkempt interiors. Hold off on big capital improvements but do not skimp on the basics. First impressions are important – the reception area should be warm and welcoming, carpets clean and paintwork fresh. “I advise owners to go out to the car
park and put themselves in the buyer’s shoes, take a tour of the home with a critical eye. Potential buyers will be observing everything from the moment they arrive,” says Greaves. Make sure waste bins are tidied away,
windows are sparkling, communal areas are spotlessly clean, bright and cheerful. Schedule viewings for times when the care home is bustling and busy, perhaps during an activity or celebration – this paints a vibrant, happy picture and forms a positive impression in the viewer’s mind.
Be positive and prepared Greaves says buyer demand for care homes is currently very strong with buyers looking for well-run, profitable establishments of all sizes, as well as turnaround opportunities for businesses with ‘Inadequate’ and ‘Requires Improvement’ ratings. “We’re also seeing
October 2021 •
www.thecarehomeenvironment.com
an appetite for closed care homes that can be reconfigured or redeveloped.” “Generally, market sentiment at the
moment is positive. Buyer confidence is there, banks are back lending to the sector as well. Operators have been through a really tough time over the last year and a half, so I’m seeing a lot of people who want to exit. But it’s important for them to be prepared before they sell.”
TCHE
Bill Watson
Bill Watson is co-director of social care service consultancy Insequa. Bill worked in the public sector for 22 years prior to launching Insequa with Peter Hamilton. He started in the NHS, working in orthopaedics and trauma as well as acute medicine. Bill then moved into an academic role where he spent 15 years undertaking and leading on programmes of applied research in close collaboration with the NHS, this involved applying research methodologies to issues of organisational and service development. Bill worked in association with McMaster University in Canada and a network of UK-based researchers on developing whole-system, interagency programmes of service planning and delivery. He also led on service development projects in the areas of COPD (chronic obstructive pulmonary disease), diabetes and cancer, working with hospital Trusts, PCTs and Local Authorities. Bill has authored several academic reports and reviewed for academic journals and the government’s Service Development and Organisation research funding stream.
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