Building value in your care business – Preparing for a successful sale
Rahid Rashid, 16 October 2025
Rahid Rashid, 16 October 2025
Selling a healthcare or care business is not something you wake up one morning and decide to do, or at least it shouldn’t be. The value achieved at exit is often the product of careful groundwork done months, sometimes years, in advance of a sale or buyout.
Buyers in this sector want to see not only strong finances but also resilient compliance, sustainable income streams and robust governance and culture. The better prepared you are, the higher the likelihood of securing both premium value and a smooth completion.
To help we have put together some key points for those considering a sale, based on our years of guidance to other businesses in the sector.
Long before you intend to sell, you should set clear personal objectives, as these will define how a sale is structured and the preparation period required. Think about the minimum value you will accept, your ideal structure of consideration and how long you are willing to remain involved post-sale.
You will also want to consider the non-financial factors, such as how to ensure service quality, staff retention and brand continuity. You may no longer be a part of the business after your departure, but most owners want to leave a legacy and ensure that those in their care continue to be looked after properly.
As part of your daily operations, you may already keep an eye on cash flow and the balance sheet. While these are fairly fundamental to any successful business, as you approach a sale they become essential and may require further work.
A formal cash flow test and balance sheet test will provide a top-level view of financial health and help identify areas to improve.
Hiring an accountant to carry out regular health checks, including tax reviews and monthly or quarterly management accounts, ensures greater transparency and minimises the risk of discrepancies.
Commissioning a company valuation, using methods such as EBITDA multiples and industry benchmarks, is another important step in understanding your true market value. This will also help you to market your business more effectively and give confidence to buyers from the very start.
Predictable revenue is one of the most attractive features that any business can have. Knowing that there is a strong stream of recurring income means that buyers can assess their immediate return and eliminate a degree of risk.
To achieve this, you could secure contractual agreements, set up auto-renewal services and preferred supplier arrangements wherever possible.
For care providers, in particular, this might mean multi-year local authority contracts, NHS frameworks or recurring referrals.
Healthcare is exposed to operational, regulatory, reputational and economic risks, so carrying out regular risk reviews to identify potential barriers to income can give buyers confidence and allow you to command a higher price.
Strengthen contingency planning, reduce reliance on agency staff, review supplier arrangements and stress-test your financials against different demand scenarios to demonstrate that you are taking things seriously.
Buyers value resilience because it reduces the chance of nasty surprises during due diligence and afterwards as they take on your customers.
A single open action with the CQC or an unresolved safeguarding issue can chip away at value quickly.
Make sure compliance files, staff training, incident logs and audit reports are up to date.
Good governance reassures buyers that quality of care is embedded and once again reduces risk.
One of my best tips is to build a clean, well-organised data room covering financials, contracts, HR, compliance, IT and insurance.
Document where intellectual property sits, from proprietary systems to digital tools or training materials, as these can add significant intangible value to your company as well.
If this is the first time you are selling a healthcare business or you are a seasoned entrepreneur, it never hurts to have professional guidance.
We specialise in helping healthcare owners prepare for sale, structuring deals tax efficiently and maximising long-term value. If you are considering an exit, get in touch with Partner, Rahid Rashid (rahidrashid@lubbockfine.co.uk) about how to position your business for the strongest possible outcome.
