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Selling a healthcare business? 5 practical tips to consider

AuthorsNicola Lomas

3 min read

Corporate, Journey to Exit, Health, Employment

A person with long light-brown hair in a black blazer stands before a vertical wood slat wall, flanked by two white square signs with abstract figures.

Selling a healthcare business can be time‑consuming, particularly for owners who are balancing clinical and patient‑facing responsibilities alongside everyday business demands.

Here, Nicola Lomas from our corporate team shares five practical tips that she commonly gives healthcare clients who are preparing to sell their business, focusing on preparation, timing and working with the right advisers.

Watch: Nicola shares five tips for selling a healthcare business

A person with long light-brown hair in a black blazer stands before a vertical wood slat wall, flanked by two white square signs with abstract figures.

Tip one: Set aside time to prepare documents early

Healthcare clients are often asked to provide a large number of documents during a sale process, covering many aspects of the business.

Setting aside time at the beginning of the process to produce these documents can help the transaction to run more smoothly and reduce stress as the sale progresses.

 

Tip two: Think carefully about when to tell staff

Clients frequently ask when they should inform staff that a sale is going through. This is always a personal choice but one that requires careful consideration of the risks and benefits.

While early disclosure may unsettle staff or risk people leaving before completion, there are situations where employees hold key information. This can include knowing where documents are kept, such as employment contracts, equipment testing certificates or commercial contracts with third parties. In those cases, involving the right people earlier may be necessary.

It’s important to note that in most cases a deal isn’t legally binding until exchange of contracts, so involving staff at an early stage may be problematic. Legally, where you expect a member of staff to transfer away from your employment under The Transfer of Undertakings (Protection of Employees) Regulations (TUPE), there are requirements to consult with staff and specialist employment law advice should always be sought. 

 

Tip three: Understand what lies ahead in the process

Clients who are less prepared for what will happen during a sale often experience higher levels of stress, particularly due to uncertainty about what comes next.

It’s important to read up on the process and speak to advisers like lawyers and accountants to understand what will be expected. Being more prepared from the outset can make the process less stressful overall.

 

Tip four: Engage landlords early where relevant

This tip applies to businesses operating from premises with a third‑party landlord.

Landlord involvement is one of the most common causes of delay in transactions, particularly where landlords are slow to provide documents or uncertain about a new tenant. Engaging landlords early can help to avoid delays and keep the transaction moving.

 

Tip five: Speak to sector‑specific experts

The importance of speaking to advisers who understand the specific type of healthcare business being sold can’t be overstated, whether that’s a pharmacy, care home or dental practice.

Different types of healthcare businesses have different regulatory requirements and advisers without sector experience may not understand what’s needed to complete the deal within the desired timeframe. By way of example, care homes and dental practices require CQC registration and if this is not aligned during the process, a buyer won’t be able to take over.

 

Talk to us

If you’re preparing to sell a healthcare business, understanding what to expect and speaking to advisers with relevant sector experience can play an important role in how the process unfolds.

Our corporate team supports clients throughout the entire transaction journey and works with organisations of all sizes across the healthcare sector, including pharmacy and dental businesses, as well as a wide range of healthcare professionals.

To discuss how we can support you, call 0333 004 4488, email hello@brabners.com or fill in our contact form.

Nicola Lomas

Nicola is a Partner in our corporate team. An experienced corporate lawyer and member of our healthcare sector group, she leads our dental offering.

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Nicola Lomas

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