Care Home Acquisition Finance for a New Market Entrant
£1,850,000 · 15 years · 6.90% fixed. An entrepreneur with a background in healthcare management - but no current ownership - wanted to acquire a 22-bed residential care home rated 'Good' by CQC.
The Client
Entrepreneur with a healthcare management background
The Challenge
An entrepreneur with a background in healthcare management - but no current ownership - wanted to acquire a 22-bed residential care home rated 'Good' by CQC. The 100% occupancy, established staff team, and strong CQC rating made the home an attractive acquisition. Lenders were cautious about the buyer's lack of care home ownership experience.
Our Solution
Doulton mitigated the experience gap by evidencing the buyer's twenty years in NHS management, arranging for an experienced registered manager to be retained from the existing team, and presenting a detailed 100-day operational plan. A specialist healthcare lender was comfortable with this combination.
The Outcome
Acquisition completed. Registered manager retained. CQC rating maintained at 'Good' on first inspection under new ownership. The home is now generating EBITDA in line with projections and the owner is pursuing a second acquisition. Key highlights: Experience gap mitigated - NHS background and retained manager; 100-day operational plan presented to lender; CQC 'Good' rating maintained on first inspection under new ownership.