Care Homes: How to Protect, Grow, or Sell Your Business with Confidence

Owning and managing a care home is about more than just business—it’s about people, legacy, and ensuring financial stability in a constantly evolving sector. In Sheffield and the surrounding areas, many care homeowners are facing pivotal decisions about the future:

• Is my care home financially secure for the long term?
• What is my business genuinely worth?
• Should I consider restructuring to improve profitability?
• Is now the right time to think about succession or even a sale?

These are not just financial decisions—they impact residents, staff, and the overall sustainability of the business. Pete Wilmer, Corporate Finance and Managing Partner at Hawsons, has spent years advising care homeowners on these complex matters, helping them navigate restructuring, succession, valuations, and sales. His in-depth knowledge of the sector and its financial landscape makes him a trusted adviser for those looking to secure their future.

"The care sector is evolving rapidly, and those who plan will always be in a stronger position—whether they are restructuring, growing, or preparing for an exit," says Pete. "The key is to act early rather than waiting until circumstances force your hand."

Understanding the Market: A Sector in Transition

The UK care home sector is undergoing significant change. Nationally, there are approximately 16,566 care homes, with 70% offering residential care and 30% providing nursing care. (carehome.co.uk)

Occupancy rates are a key indicator of financial health. As of September 2024, 86.7% of care home beds in England were occupied, with 10.5% vacant and available for admission (ons.gov.uk). These figures highlight the importance of strategic planning to maintain occupancy levels and ensure financial resilience.

In 2024, the UK care home sector saw a record £3.1 billion in transactions, with US investors accounting for 56% of all acquisitions. ​

Key Considerations for Care Home Owners

1. Understanding the True Value of Your Care Home

Many care homeowners only consider valuation when ready to sell, but it should be ongoing. Occupancy rates, operational efficiency, staffing stability, and compliance contribute value.

"A professional valuation is useful not only when selling—it’s an essential tool for planning your next steps, whether that’s refinancing, restructuring, or succession planning," advises Pete.

2. Succession Planning: Who Will Take Over?

Succession planning is often left too late for many family-run or independent care homes. Careful planning ensures a smooth handover, whether transitioning to a family member, a management team, or an external buyer.

"I’ve worked with many care homeowners who wished they had started planning earlier," Pete explains. "A well-thought-out succession plan protects the business, the staff, and the residents while ensuring a stable transition."

3. Restructuring for Stability and Growth

Not every care homeowner is looking to sell. Some want to strengthen their business, improve cash flow, or restructure to adapt to market changes.

"Restructuring isn’t just about cost-cutting—it’s about making the business leaner, more efficient, and better prepared for the future," says Pete. "This could mean refinancing, renegotiating supplier contracts, or adjusting staffing models to improve profitability."

4. Future-Proofing Aging Properties

For some care homeowners, the cost of maintaining ageing properties, particularly when faced with regulatory upgrades and structural repairs, can become unsustainable. Without strategic investment or restructuring, these challenges may render a home financially unviable in the years ahead.

5. Preparing for a Sale: The Importance of Early Planning

Careful preparation can significantly impact the final outcome for those considering an exit. Buyers—whether larger care groups, private investors, or family members—seek financially sound, well-managed businesses compliant with regulations.

"Selling a care home isn’t just about finding a buyer—it’s about securing the right deal, protecting staff and residents, and ensuring a smooth transition," Pete notes. "Owners who plan early always achieve better results than those who leave it too late."

What’s Next? Speak to a Specialist

Whether you’re considering restructuring, succession, or a sale, having an expert adviser can make all the difference. The decisions you make today will shape the future of your care home.

"Care homeowners often tell me they wish they had sought advice sooner," says Pete. "If you’re thinking about your next steps, let’s have a conversation now—because the best decisions are made with time, not under pressure."

 Want to explore your options? Get in touch with Pete Wilmer at Hawsons today.