A quick slideshow by Phoenix Business Sales & Consulting to help you understand the process of how to sell your live in care business.

1. Selling your live in
care business
by Phoenix Business
Sales & Consulting

2. So, you’re thinking about
selling your live in care business?

3. At Phoenix, our team
of experts help guide
business owners through
the process of selling their
companies every day by
offering the best advice,
guidance and support
from start to finish.

4. Our knowledgeable
team have experience of
establishing, developing
and selling their own health
and social care businesses,
which means that they can
lead the sales process while
fully understanding the
industry pressures.

5. What do you need to do before you
can sell your live in care business?

6. You will need to provide…
οο The last 2 years of financial
statements or annual accounts
for your live in care business.
οο Any management accounts for
the period since of the end of the
financial year, if it’s more than
six months since.
οο You need to be able to demonstrate
the quality of care that your live
in care business provides. For
example, positive CQC reports,
Service User & staff surveys and
staff training records
οο Details of any Local Authority [LA],
NHS and other contracts, including
how long they have left to run.

7. Should you sell the shares of your
live in care business or the assets?

8. Ordinarily it is better to
sell the shares if at all
possible, that way there
is no need to change
the LA contracts or the
employment contracts for
staff and care workers.
There are also significant
personal tax benefits
associated with selling the
assets and shares of your
live in care business, for
example entrepreneur’s
relief tax at 10%.

9. How much is my
live in care business worth?

10. We calculate the value
of your business based
on a number of factors
including:
οο A multiple of adjusted profits
οο Geography
οο The size of your business
οο Net current assets
When it comes to
selling your live in care
business, we understand
how important it is to
provide you with an
accurate valuation.

11. What information
will the buyer want?

12. There are several pieces of
information that a buyer will want
prior to considering purchasing your
live in care business including:
οο The financial performance of your live in care
company.
οο Any details of the existing staff contracts, for
example hours per week, charge & pay rates
and their duration.
οο The types of services provided and to who.
οο The number of care workers and office staff
employed by the business.
οο Information about property leases.

13. How long does the
sales process take?

14. Depending on the
complexity of your live
in care business and
assuming that most of the
information outlined in
the previous slides is
readily available, the
sales process usually takes
between 10 – 12 weeks.

15. How do I keep the sale
process confidential?

16. οο All potential purchasers will sign a
non-disclosure or confidentiality agreement
before we share any information about your
business with them.
οο Any meetings with potential purchasers
are always conducted away from the office
and often outside work hours.
οο Any contact with you is always via Phoenix
and always via a sensitive and secure
means.
During the sales process,
particularly in the early stages,
we appreciate that confidentiality
is hugely important. So, in order
to make you as comfortable as
possible we ensure that:

17. What are the costs involved in selling
my live in care business?

18. An agency or Corporate
Finance advisor will charge
an agreed percentage of the
total sale price, to be paid
on completion of the sale.
This is typically +/- 1% of the
sale value, depending on how
complex your company is.
Depending upon how up to
date the financial information
of your company is, you may
need to ask your accountant
to provide additional support
during the sales process, which
can incur additional costs.

19. Can I use my own solicitor
and accountant?

20. You can use your own
solicitor or accountant
when selling your live
in care business, but
make sure that you check
whether they have previous
experience of commercial
healthcare & social care
transactions, as this should
make the sales process
easier and quicker.

21. How much tax will I have to pay
on the monies I receive?

22. Normally the sale of
shares in a small / medium
sized business will qualify
for entrepreneurs’ relief,
which means you’ll only
need to pay a one off tax
charge equal to 10% of the
net proceeds you receive
from the sale.

23. Will the purchaser want to buy or
continue to rent the offices too?

24. As we mentioned earlier,
potential buyers will want to see
details of any property leases
linked to the business. In the
majority of cases purchasers
are keen for the company to
continue operating from its
existing premises post sale. As
such, one of three things will
more than likely take place:
οο The purchaser will take on the
responsibility for the existing lease.
οο The buyer will enter into a new lease
for the existing premises
οο The buyer will purchase the property.

25. For more information visit
www.phoenixbsc.com
or get in touch on
0845 4750 120