For owners of a supported living business considering their business exit strategy, now might just be the right time to sell.
Here, healthcare specialist broker, Redwoods Dowling Kerr, explores the why, how and when of selling your supported living business in the UK.
Reasons to Sell Your Supported Living Business
Selling a supported living business is a timely decision in today’s economic and tax environment. With Business Asset Disposal Relief (BADR) set to rise to 18% in 2026, completing a sale before the change takes effect may result in significant tax savings for owners considering an exit.
The supported living sector continues to experience strong demand, driven by an ageing population, a growing focus on community care, and consistent policy support. This level of interest is encouraging more investors and providers to enter the space.
While the market is currently favourable for sellers, conditions may not remain this attractive. Rising costs, increasing tax obligations, and a competitive buyer landscape mean the current climate may be peaking. Delay could expose your business to tightening margins or declining valuations.
With confidence in the sector high, tax relief accessible, and buyer interest strong, now might be the optimal time to sell.
Preparing Your Supported Living Business for Sale
Preparing a supported living business for sale takes more than just listing it on the market. A carefully prepared business attracts more interest, achieves better valuations, and moves through the sale process more efficiently.
Whilst you are thinking of selling your supported living business in the UK, it is worth reflecting on the following questions:
Freehold or Leasehold?
If your business operates from leasehold premises, ensure that lease terms are secure and ideally extended. Buyers may be hesitant to acquire a business and immediately negotiate with landlords, especially if the lease has limited time remaining.
If the premises are yours to sell freehold, consider the state of the building itself and conduct necessary repairs. Buyers will be weighing up the cost of any significant investments required in order to run their newly acquired business.
The bricks and mortar set up are crucial to margins, so it’s important to put your property arrangements in order as you prepare for sale.
How Efficient are Operations?
As with any business, efficient operations are an important aspect of future success. Buyers will be interested in supported living businesses that have streamlined processes in place. This could include for example, staff scheduling, communications, care planning and purchasing processes. If your business has embraced digital tools, such as care planning systems and payroll automation this could be attractive to potential buyers who place higher value on businesses that are less reliant on manual processes. In addition, this makes handover easier – a win-win for all.
Do You Have Contractual Clarity?
Make sure your contracts are legally sound, clear, and up to date. Contracts should be properly documented, ideally with provisions that allow transfer to a new owner. Uncertainty in contracts often leads to delays or reduced offers.
If your business does, it is imperative that you formalise your contracts, as a handshake is worth little to the next owner.
How Much Owner Involvement?
Buyers will want to understand how much of the business depends on your daily involvement. A strong middle management team can help make your business more attractive.
This does not mean you cannot sell if you are hands-on. First-time buyers may prefer such opportunities, particularly if they want to be more involved in the day-to-day. On the other hand, trade or private equity buyers often seek more autonomous businesses. Creating some operational distance can help make your business more transferable.
Are you in Regulatory Compliance?
Meeting the standards of governing bodies is essential. Before going to market, it is advisable to conduct an internal audit to ensure all policies, procedures, and safeguarding measures meet regulatory requirements.
An up-to-date inspection report or well-documented evidence of quality assurance can strengthen credibility and provide reassurance to potential buyers.
Some sellers face the challenge of marketing a business with a poor recent CQC rating. If this is not addressed, the valuation of the business is likely to be significantly reduced. Selling a business can take time, and it is important to note that CQC ratings can change during the process.
While many transactions require several months to complete, some business sales advisors, such as Redwoods Dowling Kerr, have been able to finalise the sale of a supported living business in as little as six weeks.
The main regulatory bodies include the Care Quality Commission (CQC), Care Inspectorate Wales (CIW), Care Inspectorate of Scotland (CI), and the Regulation and Quality Improvement Authority (RQIA).
Not all supported living services fall under direct CQC regulation. If a provider offers only housing and general support without delivering personal care, they may not be required to register with the CQC.
Ofsted regulates supported accommodation, which can include certain supported living arrangements for children and young people.
Are Financials Organised and Up to Date?
Financial data remains a central part of preparation for your business sale.
Ensure accounts are clean, up to date, and include clear breakdowns of income, occupancy, and funding sources. A well-prepared financial pack gives buyers confidence and helps your business stand out in the marketplace.
The Future Outlook
The future of supported living remains strong, with continued emphasis on independence and community-based care. The sector is increasingly attractive to first-time buyers wishing to enter the market, group operators and corporate buyers in the care industry as well as social impact investors.
At the same time, expectations are rising. Investors are looking for quality operations with robust compliance, sound financials, and growth potential.
This creates a competitive environment for buyers, but also a valuable opening for sellers. Those who prepare well and sell at the right time are more likely to realise the full value of their efforts. With tax changes coming and operational challenges increasing, now could be the right moment to act.
Choosing the Right Business Sales Advisor
Choosing the right business sales advisor for your supported living business is crucial. With Redwoods Dowling Kerr, you know you are in safe hands as the UK’s leading business sales advisor for healthcare businesses. This includes recent sales such as Lomack Health sold to Care Assist UK, Best At Home Adult Care Private Ltd sold to Henrientta Akpasubi Uwezele and Care Wish Ltd sold to Eden Futures.
RDK has a large number of funded, motivated and experienced buyers in place waiting for great supported living businesses to come onto the market. Contact RDK today for help in selling – or buying – a supported living business in the UK.
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