Helping a care provider grow while protecting continuity of care
When a group of six care homes became available through an administration process, an acquisitive care provider saw an opportunity to expand its portfolio while helping to ensure continuity of care for residents and staff. The transaction was highly time-sensitive and involved a number of complex legal, regulatory and property considerations.
Tracey Dickens, Partner in the Company Commercial Team at Tees, led the corporate aspects of the acquisition, working closely with other teams to deliver a coordinated solution within demanding timescales.
The challenge – Acquiring care homes from administration
Acquiring businesses from an administrator requires careful planning and swift execution. In this case, the transaction extended well beyond the business purchase itself.
Alongside negotiating and completing the business transfer agreement, the deal required a package of supporting documents and arrangements to enable the homes to continue operating while Care Quality Commission (CQC) registration processes were completed. The transaction also involved complex security arrangements and property work relating to the assignment of leases for each of the six care homes.
Managing CQC registration and continuity of Care
A key consideration was ensuring that the care homes could continue to operate while the necessary CQC registration processes were completed.
Interim arrangements were put in place to support the continued operation of the homes during the transition, helping the buyer manage the regulatory requirements while maintaining continuity of care for residents and staff.
Coordinating the corporate and property workstreams
Working collaboratively with the client and other advisers, Tracey coordinated the corporate elements of the transaction while drawing on specialist expertise from other teams.
Key actions included:
- Negotiated and completed the business transfer agreement,
- Putting in place interim inter-group service agreements to support the continued operation of the care homes during the CQC transition period,
- advising on a comprehensive security package, including a debenture, share call option and share charge,
- working alongside property specialists to secure the assignment of leases for each care home,
- managing the transaction to meet the tight timetable set by the administration process.
By anticipating potential issues and maintaining clear communication throughout, we helped keep the transaction moving while managing legal and commercial risk.
The outcome: successful acquisition of six care homes
The acquisition completed successfully within the required timeframe, allowing the buyer to expand its care home portfolio and maintain continuity of care across all six homes.
Tees’ expertise and multidisciplinary offering in this sector enables it to advise on complex care sector acquisitions involving corporate, regulatory and property issues, bringing together specialists from across the firm to deliver practical, commercially focused advice.
“Transactions involving care homes often require multiple workstreams to come together, sometimes in a very short period of time. By working closely with the buyer and specialist teams, we were able to complete this complex acquisition efficiently while supporting the buyer’s long-term growth strategy.”
Tracey Dickens, Partner, Company Commercial Team
