What Influences the Value of My Care Home Business?

When valuing a care home, several critical factors must be evaluated to determine its market value. 

If you have already received your Business Valuation Guide and your next steps include organising a detailed business appraisal, it is vital to consider the particular issues that influence the value of your care home business:

• The care home’s regulatory standing, particularly a ‘Good’ or ‘Outstanding’ CQC rating, plays a significant role in enhancing its value, while a negative rating can have the opposite effect.
• The client base and holding a mix of Local Authority contracts and private clients will be of interest to potential buyers, improving the stability of your business’s income.
• In the service industry staffing is vital, as labour costs, staff retention and qualifications all impact on operational stability and quality of care. 
• The care home’s reputation in the local community and potential for expansion or diversification, such as offering specialist care services, can affect its overall value.
• Compliance with health and safety regulations, safeguarding standards and workforce-to-resident ratios have significant implications for a care home’s valuation. 

While there are a multitude of different aspects that can influence the value of your care home business, it is crucial to understand the specific issues that contribute to your sale price, allowing you to achieve maximum value in your future sale.