When selling a business, due diligence checks are carried out as standard on the seller to ensure that the transaction can be facilitated smoothly and that no surprises arise along the way. The process will bring to light any legal or financial risks that could jeopardise the transaction and potentially pose a risk to the business.
As the care industry is highly regulated, compliance checks must be carried out to ensure that the premises are fit for purpose and that the buyer meets strict criteria to operate a care home and has demonstrable experience in the field.
The due diligence process when selling a care home is extensive as the sale can affect numerous stakeholders, including investors, employees, service users and their families. As such, care must be taken when preparing to sell a care home, finding a buyer, and closing the sale.
What is due diligence in a business sale?
Due diligence when selling a care home must be performed to verify the seller’s identity, investigate their financial history, and unearth any financial, legal or compliance risks that could hinder the sale. Such checks are required to ensure that the commercial interests of the business are protected, outstanding liabilities are discovered, and risk is managed.
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Selling My Business source: https://www.sellingmybusiness.co.uk/articles/selling/due-diligence-when-selling-a-care-home