Residential Home For Children Aged 10 To 17 For Sale

Business description

West Midlands area. Earnings capacity at current fee levels approximately £364,000 pa with estimated Net Maintainable Earnings (NME) of £137,000. Currently 2 bed spaces.

Property information

Premises details:

The Company
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The vendor started the company 4 years ago and since then it has developed into a quality service provider with a superb working relationship with the local care authorities.

The sale of the Home creates an opportunity for the new owner to undertake expansion of the business to grow the earnings and leverage the profitability.

The Staff
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The company has a very well organised staff structure suitable for current and extended turnover to support revenue growth. The staff are well established and thoroughly understand the needs of the service users.

The Property
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The property is an Ofsted registered Children’s Home. It is located within a residential area within short walking distance of local amenities. The ground floor comprises of a reception hall, w/c, lounge with dining facilities, office, kitchen and a large conservatory that overlooks the rear garden, currently used as a therapy room. The first floor has two bedrooms with study facilities, bathroom and staff office with sleeping accommodation.

Financials
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This care home has great scope for increases in revenue with investment in the available expansion in room numbers. For the year ending 2009 turnover was £305,476 with NME of approximately £111,145. With the quick addition of an extra room by converting the office, revenue would increase to approx. £487,000 with NME of approx. £175,320.

Other information

Expansion potential:

There is potential to use the current large office room on the ground floor as an extra bedroom. There is also the potential to extend the house to the rear into the garden subject to planning permission.

Reasons for selling:

The company trades as a Limited Company and is instructed for sale by way of Share Transfer plus net asset value (NAV) to enable the director to retire from business ownership.

Financing available:

The current economic situation has, of course, made access to funding a little more difficult for most people, however Equittex have direct access to a number of mainstream and alternative funding providers and partners.

So if you are interested in making an acquisition (via Equittex or otherwise) please send us a quick email and we will be delighted to help if we can.

Related documents:

• 
• 000207a Sales Memorandum