When you are considering the sale of your home care business, your first step on the journey will be your business valuation.
If you’ve already got your Business Valuation Guide and are ready for a detailed business appraisal, it’s important to understand the specific elements that influence the value of a home care business and the price that can be achieved on sale:
- As with any business, buyers of domiciliary agencies are looking for well-run, profitable businesses with potential for further growth. Depending on the buyer, they may require a business that can merge with existing operations, or an agency operating in a new market location.
- In a service industry focused on care and reliability, a loyal, low-turnover workforce will be highly prized. Reputation is key and achieving good CQC reports are important.
- The client base including Local Authority contracts and/or a mix of private and public sector clients will be of interest to potential buyers.
- Geographical coverage will be key to a valuation, as potential buyers will be looking for opportunities to match their strategic plans, whether in new locations or building presence in existing markets.
- The ability to offer specialist or niche care services, with highly trained staff can add value, giving buyers access to new service lines.
- Another aspect to consider is how well your home care agency could run without you at the helm as this can greatly assist the smooth running of the business following acquisition.
Of course there are many aspects to valuing a home care business, but it’s worth understanding some of the particular issues that can impact on your agency’s sale price so you can focus on achieving maximum value in the future.
