Here at Phoenix we aim to provide you with the best advice, guidance and support to help you when it comes to selling your Children’s Residential Services business.

Our team of experts have several years’ experience in Children’s Residential and Educational Services sales. They also have experience of establishing, developing and selling their own health and social care agencies, which means they understand the pressures of the sector and can offer expert advice when thinking about selling your company.

Financial statements & accounts 

sell Childrens Residential Services Business

Before you can sell your Children’s Residential Services business, there are several things that you need to consider, starting with your accounts. You will need copies of the company’s financial statements from the last two years and management accounts for the period since the end of the financial year (if it’s more than 6 months since then).

Quality of care 

You will also need to be able to demonstrate the quality of care that your business provides, including Ofsted reports, client, parent and staff surveys and staff training records, along with details of any contracts with Local Authorities and other organisations.

Buyers will also want information about staff and client contracts such as the number of hours that staff work per week, the pay and charge rates and the duration of these contracts. As such, you should be prepared to give details about the number of staff you employ, their shift patterns and occupancy levels.

Selling shares or assets 

sell Children’s Residential Services Business

In most cases it’s better to sell the shares of a company if possible as by selling the shares there’s no need to change contracts and leases.
Ordinarily, a purchaser will be keen for the business to continue to trade from the existing premises post-sale. This means that you will need to provide information about any property leases, for example the type of property, length of lease etc.

There are also significant personal tax benefits to be gained by selling the business’ shares, such as entrepreneur’s relief tax. Normally the sale of shares in a small/medium sized business will qualify for entrepreneur’s relief, which means you only need to pay a one off tax charge of 10% of the net proceeds received from the sale.

Calculating your business’ worth 

One of the most important steps in the process of selling your Children’s Residential Services business is the accurate calculation of your business’ worth. At Phoenix our expert advisors will produce a valuation and a detailed explanation of how it has been reached.

The value of the business is normally calculated on a multiple of adjusted profits and is dependent upon geography, the size of the business and the mix of contracts. There may also be a further payment in lieu of the net current assets.

Sales process

Assuming the information required is readily available, the process of selling your Children’s Residential Services business would normally take 10-12 weeks.

At Phoenix we understand the importance of confidentiality when it comes to buying and selling businesses, so before we share any information about your company with potential purchasers they will be required to sign a non-disclosure or confidentiality agreement.

All meetings with potential purchasers are held away from the office or outside of working hours and all our communication takes place via a personal mobile number or personal email address.

Costs 

sell Children’s Residential Services Business

Of course when you are selling your business there are a number of costs that you will incur, the first of which is the fee charged by an agency or corporate finance advisor such as Phoenix. Usually your agency or finance advisor will take an agreed percentage of the total sales price, which is paid on completion.

Solicitors and accountants

You can use your own solicitor or accountants when selling your business, however it is vitally important to ensure that they have experience of commercial healthcare and social care transactions. Without this experience the sales process can become more complicated. Depending upon the complexity of the company a corporate solicitor will provide you with a free quote in advance. This is typically +/-1% of the value of sale