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Introduction
Buying any business is a complicated process and to make sure you find the right one for you can often be stressful and time consuming. Buyacarehome.com has been designed to help anyone in the process of buying a care business and point out both the pitfalls and bonuses of doing so. This page takes you through the steps of buying an existing care business, including how to assess and value a business, your obligations to any existing staff and where you can get professional help.
Step 1 Decide what you want to buy
Naturally it is important that the business you decide buy suits your own individual skills and needs. It is prudent to consider what you are keen to bring to the business and also what return you are expecting in the short, medium and long term.
Buying a business entails a significant long-term financial commitment, so you will need to reflect on not only your lifestyle expectations but also clearly establish what you can afford. You will need to take into account which assets you would like to use to contribute as well as the ongoing operation of the business. Although it may reduce your buying options, this will avoid you making a obligation to a purchase, which you later realise you cant complete.
Some examples of options to consider:
- Location?
- Do you require owner's accommodation?
- What category of care are you looking for?
- Do you need a home that can be run under management?
- What is your price range
Make sure you get specialist advice on what you can afford to spend and borrow - our maximum price calculator and loan calculator will assist you, or you could contact a specialist financial broker, such as Chandler & Co, who will do this for you. They will also be able to help you in which type of business will be most suitable for you and give you the most options for the future. Because of the credit crunch, it is vital that you secure indicative mortgage terms before starting the searching process. This way, when you find the right business, you will avoid being beaten to it by another purchaser and you will also be in a much stronger negotiating position.
Step 2 - Register with the Specialist Business Transfer Agents
The specialist transfer agents in the sector add a wealth of experience to these transactions and some will even be happy to make specific enquiries on your behalf for particular businesses.
Step 3 Find a business you are interested in
Once you have seen a business that you are interested in viewing, obtain specialist guidance on any potential pitfalls so ensure you get the most out of the visit. Be sure to bear in mind the implications of the relevant industry standards.
Step 4 Arrange a viewing
Be sure to make sure you are well prepared for your viewing and take note of all the relevant details. Once you have viewed, liaise with a specialist finance consultant who can help you assess the accounts and advise you on the potential funding available.
Step 5 Negotiating an offer
After careful consideration, you will be able to make a formal offer via the selling agent. Be sure to include any relevant conditions as advised by your professional advisers
Step 6 Offer Accepted
Once your offer has been accepted, you will need to instruct a suitable business appraisal valuation before you can secure an offer of funding. Bear in mind that not all lenders hold the same valuers on their panel, so it is prudent to get specialist advice before you incur any irretrievable costs.
Step 7 Instruct your Professional Team
Carefully select and instruct a specialist experienced solicitor and accountancy firm to assist you.
Step 8 Prepare to submit your registration application
Ensuring you have the permission of the vendor, if required, contact the relevant regulatory authority and obtain an application pack for the change of registration. Once the valuation has been received and your funding application has been finalised, you can drive full steam ahead with your application.
Step 9 Finalise your funding requirements
Once your valuation has been received, your broker will be able to submit their full lending proposal for formal credit approval and supply you with agreed facility terms.
Step 10 Complete the purchase
You will need to keep in regular contact with all of your professional team to ensure things progress quickly to completion and be on hand to overcome any unforeseen obstacles. Some specialist advisers like Chandler & Co. offer a full service in which a dedicated team are on hand to do this for you.
