looking to buy a care home in UK - Advice required

[tire1]

Hello all,
I am already running a trading company and now looking to buy a care home in UK. I wish to take over a running carehome with all management in place already (though I would involve myself into management, but I do not have any experience in running them). I have around £100,000 in my cash and rest, I am looking to finance from bank. Any suggestion on to Do's and Don'ts welcome.

 

[businessfunding]

Key 'don't' is don't buy into a business you don't understand

this is not an easy sector (though it is a good one if you have experience)

£100K won't get you far - realistically you would have to be looking at a business value of £400K or less - and even then you would have no working capital

A client of mine bought a home for £! million on the south coast. He put down 50% deposit and borrowed the rest.

He then invested £120K in refurb and upgrades, only to be prevented from taking new clients due to Safeguarding issues - which are very serious in this area.

After 18 months he is just back into positive cashflow. Fortunately he has been able to bank roll this as the bank would not have supported him

 

[Billmccallum]

see http://www.carehome.co.uk/for-sale/index.cfm/type/nursing-homes/

 

[sjb84]

Have to agree with kickstart - I don't think 100k would be enough - there is plenty of information regarding this on www.startups.com - just consider everything before making your decision.

Hope that's of help