Care Home Sector
Over the years we have advised many operators in the care home sector.
This includes residential care, nursing homes and other specialist care providers.
Like many industries managing cash flow is crucial but even more so in the care home environment. A good solid internal accounting system sets the base for essential reports production and helping with management thereon.
Good procedures are needed to keep track of individual residents/patients especially those with local authority funding.
Finding the right care home business and making an offer is a very time consuming process. Taking up to a year is not uncommon.
Before making an offer you may wish to discuss your options with legal and accounting advisors to ensure that you do not bind yourself to terms which could affect your future plans going forward and that the offer that any offer that you make is commercially sound.
At our initial meeting our financial model, designed especially for this sector, can speedily assess the viability of your enterprise or proposed acquisition saving much time and money.
We have also been heavily involved in sales and acquisitions of care homes. We will provide the full due diligence that is required, working alongside your chosen lawyer. We ensure that you are purchasing what you believe you are purchasing. We delve into the operational history and check the accuracy of the figures being portrayed. We also look for potential problem areas to ensure you are aware of the risks and have the ability to fund it through.
Our process will cover:
- Adequateness of the accounting system
- Is there a good workable operational manual?
- What systems are used and compliance issues.
- Transactional history and future contracts.
- Employees, Employment law and issues arising
- Tax history with HMRC and establish warranties required
- Profit projections
- Existing liability agreements
We also explore the tax efficiency of your proposal and advise accordingly.
If all goes well then there is the “Completion” to supervise
Once the terms are all agreed and contracts are put in place the process can start to complete the deal. It is not just like handing the keys over for a new shop as there are so many variables. A completion Account will be drawn up to reflect the assets and liabilities actually in place on the day, these will then be compared to.the com While these issues are often transaction specific it is not uncommon for the contract indicators for a final price adjustment. For example the working capital may be stipulated as being £100,000 when it is only £85,000 on the day.
Through our contacts we can if necessary introduce you to sources of finance for your industry for aquisitions of land,buildings and or any short term assets. These are changing all the time as loan book criteria is changed. There are more sources of finance than conventional banks. We will help you target potential homes.