Care Home Acquisition for Established Operator in the North West
£2,800,000 · 20 years · 6.40% fixed 5 yrs. An established care home group operating three homes in Lancashire was acquiring a fourth - a 28-bed residential care home with a strong CQC 'Good' rating and 96% occupancy.
The Client
Established care home group
The Challenge
An established care home group operating three homes in Lancashire was acquiring a fourth - a 28-bed residential care home with a strong CQC 'Good' rating and 96% occupancy. Healthcare lending requires specialist underwriting and most high street lenders have limited appetite.
Our Solution
Doulton placed the mortgage with a specialist healthcare lender experienced in CQC-regulated facilities. The application was built around the trading accounts of the existing three homes, the acquisition target's CQC report, and a three-year financial projection. Personal guarantees from the directors were provided.
The Outcome
Care home acquired. Group now operating 28 + 24 + 31 + 28 = 111 beds across four sites. The acquisition immediately strengthened group EBITDA and created economies of scale in central management. Key highlights: Specialist healthcare lender - CQC rating central to underwrite; Group EBITDA strengthened materially by acquisition; 111 beds under management across four sites post-acquisition.
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