Selling your care business is a complex process, and you will require assistance from various care industry professionals along the way. The DC Care team liaises with such professionals, all of which have many years’ experience in care, including solicitors, finance brokers, accountants and bank contacts on a daily basis and can provide contact details upon request.
For example, it would be prudent to consult an accountant for tax advice on whether to sell the shares or assets (if relevant). It is highly recommended that a solicitor with legal experience in the healthcare sector is chosen for the due diligence process, they can promptly expedite matters and enable a sale to progress smoothly and swiftly.
The due diligence process involves potential purchasers looking at your business in great detail, examining everything from management accounts to staff rotas and photocopier lease agreements. You can make the process easier for yourself by ensuring that all your accounts, records and paperwork are all in order prior to instructing us to market your care business.
There are key areas within a care business that should be assessed and, where necessary, addressed. In any event they are principles of good business management, however leading up to a sale they will come under scrutiny from a potential purchaser and therefore any preparation you make should reap benefits.
Once you have accepted an offer and instructed your solicitor to proceed with the legal due diligence, you will be asked to give warranties and possibly indemnities about the business. Warranties are promises you make about the business and, if breached, can result in a claim against you. If there are any obvious risks then the buyer also will want an indemnity from you - which will cover all their costs in resolving a problem. By identifying risks and concerns well in advance of the sale going ahead and (where possible) resolving these, you will be in a better position to give warranties in confidence, have control over how to resolve problems and to limit the extent of indemnities.