Lender appointed review of care home group

BTG Advisory was appointed by the bank to undertake a review of a care home group due to debt service issues they had. 

Our team undertook an Independent Business Review that highlighted that occupancy rates had fallen due to management issues. To address this, we assisted in sourcing a suitable replacement for the management position, who then worked to re-establish relationships with the Local Authorities.

The partnership structure was also giving rise to challenges due to the way rents were charged to the limited company trading entities. We sought new tax advisers for the group and advised on a new tax efficient corporate structure. Key to a successful turnaround plan, a debt restructure together with a de-gearing strategy (asset sale) was recommended.

Our specialists also looked at change of use for one of the group’s properties and referred specialist asset management consultants.