Care Home & Residential Care Valuation
Discover what your care home or residential care facility could be worth today
Typical Valuation for a Care Homes (Residential Care) Business
| Metric | Typical Range |
|---|---|
| EBITDA Multiple | 4.0-6.5× |
| EBITDA Margin | 18-35% |
Market Overview
Care homes and residential care facilities typically sell for 4.0-6.5× EBITDA in the UK market, though property value often represents significant additional component. The range reflects CQC rating, occupancy levels, resident mix, and property ownership. Care homes rated 'Good' or 'Outstanding' with freehold property command premium multiples (5.5-6.5×) due to quality assurance and asset value, while 'Requires Improvement' or leasehold operations trade lower (4.0-4.5×). Key differentiators include CQC rating (Outstanding/Good essential), occupancy (90%+ ideal), resident revenue mix (self-pay 40%+ preferred over 100% LA funded), qualified management team (Registered Manager in place 12+ months), freehold/long lease, modern facilities/compliance, and care type (nursing vs residential vs dementia). Corporate care groups and PE-backed platforms actively acquire quality homes.
How to Value a Care Homes (Residential Care) Business
The standard methodology for valuing a care homes (residential care) business in the UK is EBITDA-based. A buyer will calculate your Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and apply a multiple based on sector benchmarks, business quality, and growth prospects. For care homes (residential care) businesses, that multiple typically ranges from 4.0-6.5×.
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