Are you interested in buying a Care Home as an investment but aren't quite sure about what's involved or how to take the first steps? Michael Aldridge, Associate Director of Chantview, one of the UK's leading specialist agents for buying and selling Care businesses, has the following advice:

1. What type of Care Home is best for me?

The best type of Home for you depends on a number of factors.  Firstly, choose the category of Client you wish to care for ie: Residential, Nursing, EMI, Physically or Mentally Handicapped, Children etc. This choice depends on your relevant experience and if you intend to be in charge of the Home on a day-to-day basis. You will also need to work out realistically what you can afford by discussing your particular circumstances with a Specialist Care Home Agent.

2. What experience or qualifications will I need?

For Care Homes you will need to have a minimum period of relevant experience at senior level, and/or hold an appropriate recognised qualification, and have Level 4 NVQ in Management and Care or equivalent. Alternatively, you will be asked to employ a Manager who meets these requirements.

For Care Homes with Nursing, you will need to have a nursing or medical qualification with recent relevant experience. Alternatively, you will be asked to employ a Manager who meets these requirements.

3. How will I know if I'm purchasing a good business?

You will need to assess the standard of the Care Home, the quality of the care provided and the strength of the business in terms of current profitability, future potential and other competition in the area. You will need to carefully analyse the accounts of the business to check the trading pattern and also discuss the service provided by the current Owner when viewing the Home. Your Business Agent should hold copies of accounts, Inspection Reports, details of fees, staffing analysis and wages information to assist you with this.

4. How do I raise the finance?

It is important to seek specialist advice from an independent financial advisor who deals specifically in the Care Home Market. The amount you can borrow will vary greatly depending on the size and type of Home you choose, your experience, the deposit available and a bank's lending criteria. Specialist advice will ensure you achieve the best deal for your personal circumstances.

5. Will I need a survey?

In most cases you will require an independent business valuation, which will need to be undertaken by a recognised Company, acceptable to the lending sources, which, fund Care Homes. This is not to be confused with a structural survey of the property.

6. How does the business differ from a shop, hotel or public house?

You are not only responsible 24 hours a day for your business, but you also have a legal responsibility for the wellbeing of the Residents in your Care. You have to be registered with the Registering Authority as the Owner of your Care Home.  To do this, they will need to approve you as a suitable person. They will take up character references for you including a criminal records check and assess your experience and/or qualifications. Before registration is granted, you will also be required to attend a "Fit Person" interview, which, amongst other things, will involve questions on your knowledge of the business and relevant legislation.