Care home due diligence
Due diligence built for care-home transactions.
Financial due diligence that tests the quality of earnings, occupancy, staffing costs and sustainability behind a care-home acquisition, not just the headline profit and loss.
Why specialist accounting matters
A headline EBITDA figure rarely tells the whole story.
Care-home transactions can look attractive on historic accounts while underlying occupancy, staffing costs, agency dependence or one-off items tell a different story. Due diligence should test whether the earnings being presented are sustainable.
We review the financial and operational drivers behind the numbers so buyers, investors and operators can understand the quality of earnings, identify pressure points and assess the assumptions supporting the transaction.
What we focus on
Due diligence focused on the numbers that matter in care.
Operational drivers
- Quality-of-earnings review
- Occupancy quality and sustainability
- Staffing and agency-cost sustainability
Financial visibility
- Quality-of-earnings analysis
- Underlying margin and normalised earnings
- Working capital and completion accounts
Transaction analysis
Due diligence should explain what the buyer is actually acquiring.
We combine financial analysis with care-sector operating drivers so the review goes beyond historic accounts. Occupancy, resident income, staffing costs, agency usage, margin, cash flow and working-capital requirements are considered together.
Reporting
- Historic trading and management accounts review
- Quality-of-earnings analysis
- Occupancy and fee-income review
Planning and advice
- Payroll and agency-cost review
- Cash-flow and working-capital review
- Completion accounts support
Frequently asked questions
Questions operators commonly ask us.
Can you carry out due diligence on a single care home?
Yes. We can support transactions involving an individual care home as well as larger multi-site acquisitions, with the scope tailored to the size and complexity of the deal.
Can you review a multi-site care-home acquisition?
Yes. We can analyse performance by site and at group level so stronger locations do not hide weaknesses elsewhere in the portfolio.
What do you look at during care-home due diligence?
The scope can include quality of earnings, occupancy, fee income, payroll and agency costs, margins, cash flow, working capital, debt, historic trading, management accounts and completion-account considerations.
Specialist care-sector accounting
Related sectors we support.
Talk to a specialist