Strategic Disposals for Corporate Client
One of the UK's largest care home and specialist care home operators instructed Savills in 2006 - 2010 to undertake strategic reviews and confidential disposal programs of 54 care homes and 2 secure units situated across England and Wales.
The Brief:
The client had taken the strategic decision to dispose of those non core businesses and assets that did not fit their long term business strategy. The Savills team led by Craig Woollam included Healthcare, Development, Planning and Auction departments.
The care homes have been transferred as going concerns, or with Vacant Possession individually.
Our Solution:
The transfer of the business entities was sensitive and Savills agreed a disposal strategy that was specifically designed to maximise value with minimum disruption to the core business. We have successfully achieved this.
The process for the sale of going concerns was designed as follows:
- Savills inspected the property/properties on the basis that it was carrying out a valuation for audit purposes.
- Pre agreed Financial and operational provided to Savills.
- Valuation provided to client for marketing purposes with project plan and commentary on alternate use value.
- Draft Information Memorandum provided to client for approval.
- Target applicant list agreed between client and Savills.
- Covering letter and Non Disclosure Agreements issued to the approved applicants.
- Weekly reporting structure commenced.
- Information Memorandum with target date for offers / expressions of interest based only on the pack issued.
- Period of discussion between Savills and applicants.
- Short listing.
- Limited number of viewings for a number of bidders or a preferred single bidder chosen
- Draft Heads of Terms issued and agreed (including scope of warranties, capital allowances, conditionality surrounding registration and time lines). Bidders asked to submit best and final offers and comment on the HoT.
- Final period of discussion/negotiation and recommendation made to client.
- Legal pack issued (including contract, local and environmental searches, disclosures and answers to commercial and property enquiries) calling for exchange subject only to registration within 8 weeks.
How we added value:
In certain cases the alternative use value has exceeded the business value and in other cases the properties have not been deemed sustainable and have been sold either at auction or by private treaty. Savills has provided planning advice for those units were value could be added.
