Alison covers the state of the market, using an agent, how agents appraise and market businesses, and the common pitfalls

1. Elderly care conference 2017
Stream A – selling care homes, the role of
the agent and common pitfalls
Alison Willoughby

2. Selling care homes, the role of an
agent and common pitfalls
Alison Willoughby
Regional Director
DC Care Specialist Healthcare
Business Transfer Agents

3.  The state of the market
 Why use an agent?
 How agents appraise businesses
 How agents market a business
 Common pitfalls
For Discussion

4. The State of the Market
Common questions:
 What’s the market like?
 How much is “a xx bed care home” worth?
 Do you have buyers ready?
 How do you vet buyers?
 Why didn’t I know that was on the market?

5. Why Use An Agent?
 Specific market expertise
 Access to professional partners
 Confidentiality and specialist marketing
 Negotiations can be time-intensive
 Can advise if right time to sell or if business is
not ready to achieve optimum exit value

6. How Agents Appraise Businesses
 Appraisal vs Valuation
 EBITDA, FMT, multiples
 Factors affecting multiples
– Compliance
– Physical environment
– Competition
– Historic and fair maintainable trade

7. How Agents Market A Business
 Most sales confidential – addresses withheld
 Use of online marketing
 Non-disclosure agreements
 Appropriateness of buyers for homes
– Experience
– Location

8. Common Pitfalls
 Lack of or out of date financial information
 Active embargo and impact on sale
 High agency use, staffing issues
 Repeated poor compliance inspections
 Mortgage settlement penalties
 Unrealistic valuation expectations