‘A note from CEO’ series
Top 5 mistakes Care Home owners make when selling
(and how to avoid them)
Selling your Care Home, Nursing Home and Assisted Living is one of the most significant decisions you’ll ever make, yet many owners enter the process unprepared. According to STEP (Society of Trust and Estate Practitioners) research, more than two thirds 69% of UK family businesses lack formal succession planning, placing their future at serious risk.
The first major mistake owners make is delaying preparation until they are forced by ill health or burnout. Such last-minute sales or exits significantly weaken negotiating power. Another critical error (second) is failing to maintain clear and transparent financial records. Buyers rely heavily on consistent EBITDA
figures; unclear accounts can lead to significant valuation reductions. Staff retention is another overlooked issue (third). A stable and committed workforce reassures buyers and boosts valuations, while high turnover is a red flag,
especially with increasingly stringent Care Quality Commission (CQC) inspections. Currently, 23% of Care Homes face closure due to ‘inadequate’ ratings under CQC’s rigorous new standards. Poor tax planning also significantly impacts sale outcomes (fourth). Recent restrictions in Business Property Relief (BPR) mean owners must act early to avoid substantial inheritance tax and capital gains liabilities. Lastly (fifth), many sellers prioritise the highest financial offer without considering the buyer’s reputation, values, and operational philosophy, potentially damaging their legacy post-sale.
How to avoid these mistakes?
Careful planning, professional advice, and strategic decision-making can mitigate these common pitfalls, ensuring
owners achieve the best financial and personal outcomes when selling their care home.
Is there a viable and practical solution?
At Florence Legacy, we take pride in having successfully formulated 37 strategic exits for Care Home, Nursing Home and Assisted Living facilities, each tailored precisely to meet the unique needs of each individual owner. Whether you’re considering a straightforward sale, planning for retirement, transitioning
your responsibilities, or seeking a smooth, stress-free exit, we are happy to help. We counsel our partners to begin planning their strategic exit at least 3 years in advance, but the more ideal timeframe is 5 to 7 years prior to retirement or stepping away. Please reach out to us for a completely confidential conversation to
discuss how we can support your next steps.
Keywords: selling care home, exiting care, preserving legacy, correct timing, exit strategy, Succession
