Are you looking to sell or seek investment for your aged care facility?
08 July 2016
If a business sale or seeking investment is part of the desired future state you’re your aged care facility, there are five things you and your leadership team must consider:
- Make the decision: While the topic of selling a business or seeking investors may arise organically when discussing your business’s future, the first major step in this process is actually formalising and agreeing on this decision. Without the will of the owners and confirmation from the directors, the process can’t begin. If there’s not a supporting reason or rationale for making the change, nothing will happen and there will be no direction for the ongoing stages
- Check if it’s the right time: Making the decision to sell or seek investors for your aged care business is one thing, but it’s also important to be aware of the current state of the market. Currently, the market conditions are looking favourable for aged care operators looking to sell. If management is in favour of selling, now is a good time to begin moving further down this checklist
- Increase attractiveness: After making the decision to sell or seek investors and understanding the current market conditions, business owners need to be aware of what makes an aged care facility attractive and how this will then be formalised later in the process. It’s not just management that will come under review, but the actual structures as well. In reality, people are looking for a well-rounded facility with a good cash flow that will continue to be a strong investment in the future
- Prepare the business: The process to sell or get your facility ready for investors can be quite onerous. Both buyers and investors will be interested in your current results and prospects for growth. To begin, focus on occupational hygiene factors, such as keeping financial records up to date and ensuring the day-to-day record keeping is free from loose ends. It’s also important there are no outstanding compliance concerns. Likewise, the physical structures of the facility must be in good condition. Aged care facilities need to be safe places that are compliant with all government regulations to give investors and buyers confidence
- Choose a partner: Whether you’re looking to sell or get your facility investor ready, our team of specialists can assist you. Deciding to sell a business or seek investors can be the first step in what may be a long and complex process. By partnering with an experienced and specialised firm, you’ll gain support you need throughout the entire journey.
We provide more detail about these five items in our latest aged care eBook.
Download Aged Care eBook
If you operate a facility I’d be interested in hearing how you plan for the future of your business, so please contact one of our aged care experts.