We prepare the accounts, the figures a buyer asks for and the tax position on the sale or purchase of a care home, home care agency, supported living service or nursery.
This applies in England where the buyer is a different legal entity from the seller.
A buyer is paying for profit that depends on occupancy, fee rates and staff costs, so those are the figures a buyer tests first. Minimum wage shortfalls on travel time or sleep-ins are a liability of the employer, and a buyer of the company takes on the company's history with it.
A care sponsor licence requires active CQC registration for a job in England, and changes to the organisation have to be reported to the Home Office, generally within 20 working days. Both need to be planned into the timetable before completion.
Where the buyer purchases the shares of the company that holds the registration, the registered legal entity stays the same. Confirm with CQC or Ofsted what has to be notified on the change of ownership before completion.
Registration belongs to the legal entity that carries on the regulated activity. A buyer that is a different legal entity applies for its own registration, quoting the seller's provider ID, and CQC completes it when it receives confirmation that the sale is complete.
Only once Ofsted has registered the buyer. Ofsted says a new organisation cannot provide childcare until it is registered, and that doing so would be an offence. The seller remains responsible until it resigns.
No primary source publishes valuation multiples for care homes, home care agencies or nurseries. We work from your accounts, your occupancy and your funding mix to the profit a buyer is paying for.
Yes. CQC treats it as a change of legal entity, and the new company completes the provider application again.
Buzz Financial Services is a trading style of Equity & General Financial Services Limited, authorised and regulated by the Financial Conduct Authority (FCA 474163).
Works out the capital gains tax on selling a business, with Business Asset Disposal Relief at 18% up to the £1 million limit.
Open the calculatorCovers Business Asset Disposal Relief, inheritance tax relief on business assets, and using a pension before a sale.
Read the guideWe look at your last accounts and the figures a buyer will ask for first.