A number of complex challenges face the healthcare industry – in both the public and private sector - and will potentially have an impact on the sale of your business, the price you achieve, and whether or not you are able to meet your major objectives.
Hiring the best legal, financial and business advisors will make the process easier, and ensure the money you receive from the sale is extracted and invested in the most tax-efficient manner.
So how can you persuade interested parties that your business is a good investment? Apart from providing compelling financial information, you need to focus on the challenges you face every day, and demonstrate how you overcome them.
We understand that preparing your healthcare business, clinic or supplier business for sale can be challenging, taking into consideration health standards, regulations and marketing to a niche customer base. The Selling My Business team have a database of over 10,000 interested buyers and a formulated marketing campaign spanning nationwide, tailored to each disposal to help maximise the chances of finding a buyer. The first step is to value your healthcare business to calculate the financial worth and to give prospective buyers a starting point.
We offer a free healthcare business valuation service to guide you through the stage of placing your business on the market, as directed by the Selling My Business team. We have a dedicated, in-house valuation team who are specialists in the business transfer industry with an extensive background in business sales. They will take a microscopic approach to valuing your healthcare business, answering ‘what is my healthcare business worth’ and ensuring that you attain market value or more for your business.
"The advisors were well versed in the challenges faced by my sector and provided support throughout every stage, from initial marketing, reaching interested buyers to successful completion."
Clare – Retirement Care Home, Derby
Initially, you will need to determine your overall aims and objectives so that you can present your business in the best light. In practice, the process starts with a professional business valuation which is included in the Information Memorandum.
This also lays out details of how the business works, its customers, employees, and finances. Using a broker experienced in the industry is advisable as they will make the process smoother, and allow you to run the business without distraction.
The financial aspect of the Information Memorandum will clearly be of particular interest to prospective buyers. They will want to view financial statements, profit forecasts, asset valuations, and details of all debts and liabilities.
The Information Memorandum is distributed to interested parties, and because this is a relatively comprehensive overview of your company’s financial health, you should prepare a confidentiality agreement to be signed prior to issue.
You may decide to allow visits to your premises to give potential buyers a better picture of the proposed investment, but this also introduces confidentiality issues.
Those particularly interested in buying your business will undertake due diligence measures to ensure the information they have been given is accurate, and reliable enough to use as a basis for their investment decision.
They may request warranties or indemnities that offer protection in the future:
Again, it is vital to obtain professional guidance when such binding agreements are requested by purchasers. This will protect you from taking on excessive future liability, and limit your exposure to the risk of personal debt.
A Letter of Intent (LOI) details the terms you have agreed. It is non-binding in most instances, but indicates serious intent from both parties. Also known as a Heads of Term Agreement, the document establishes a timeline for sale as well as detailing how payment will be made.
If you need further advice and assistance in selling your healthcare business, request a free consultation with Selling My Business. We will ensure a smooth process, taking into account the inherent problems your industry has to overcome. Call one of our experts in complete confidence.
Contemplating selling your business? Our free, comprehensive guide will walk you through how you can sell your company. Our FREE guide covers all of the essentials, including:
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