Acquisition Decision Review
An independent owner-to-owner review of a care-home acquisition before you commit.
A good care home can still be the wrong acquisition - for you, at that price, at that time.
Your valuer assesses the business and property.
Your accountant examines the numbers.
Your solicitor considers the legal issues.
Your lender decides whether it is comfortable funding the acquisition.
The Acquisition Decision Review asks the question none of them is principally there to answer:
THE QUESTIONS I CHALLENGE
The asset - Would I actually want to own this care home? The deal - Does the price make sense for what exists today? The upside - Where will additional value come from - and who is paying for it?
The alternative - Is this the best use of your capital and borrowing capacity?
The group - Will this strengthen your existing business or simply make it bigger?
The downside - What has to go wrong before this becomes a poor investment?
The end game - Will you be pleased this home is in your group five or ten years from now?
Would I buy this care home, at this price, on these terms, if it were my money?
HOW IT WORKS
1. Initial discussion
We discuss the acquisition, your existing group, what you are trying to achieve and why this opportunity appeals.
2. Independent review
I review the key information already available, including the lender's valuation where applicable, financial information and relevant findings from your professional advisers. I request further information where necessary.
3. Written Review
You receive an Acquisition Decision Review setting out what supports the acquisition, what concerns me, the assumptions I would challenge, the questions I would want answered and what could change my view.
4. Decision Meeting
We work through the findings together and test the decision before you commit.
My View
I finish with my independent owner's view of the acquisition on the information available - including whether I would be comfortable proceeding on the proposed basis, comfortable subject to specific issues being resolved, or whether I would seriously reconsider the deal as currently proposed.
WHAT IT ISN'T
It isn't legal due diligence. It isn't an accounting review. It isn't a valuation. It isn't a building survey. Your existing professional advisers do those jobs. I take their work, the available information and my own 30+ years of care-home ownership experience and ask whether the acquisition itself makes commercial sense.
FEE
0.1% of the purchase price, subject to a minimum fee of £5,000 and agreed scope. The fee is for the independent Review and is not contingent on the acquisition completing.