Adopting a VAT strategy for growth

Having successfully guided a number of equity-backed care groups through the due diligence process, and with more than 20 years’ experience in healthcare, Rob Burton (managing director of healthcare specialist VAT Solutions) is well-versed in the sale, acquisition and financing detail that accompanies the investment growth market

VAT Solutions’ robust and thoroughly researched strategy in terms of VAT structure seems to be attracting much interest among equity backers in the healthcare market.

“As the originators of this arrangement, VAT Solutions have demonstrated significant depth of knowledge in all aspects of applicable legislation and case law regarding ‘contract restructuring’… I cannot fault their ongoing commitment to achieving the best result for us.”

David Manson, chief executive officer (Keys Group)

Considering VAT Solutions’ corporate client base, Rob, with a background in corporate VAT accounting (Deloitte, PwC, Arthur Andersen) is very aware that the VAT structuring which is available to the sector through VAT Group Registration sits well with investors. Those who want to optimise the calibre of the businesses within their portfolio, while also taking into account any consolidation or exit strategy, are exploring the established VAT Solutions arrangement and related services.

Rob Burton, managing director, VAT Solutions

Whereas historically the issue of VAT has negatively impacted the sector in terms of working capital and cash flow, and has always been a drain on business costs, the Care Act of 2014 delivered the change in legislative and regulatory terms which provided the catalyst necessary for VAT treatment in the sector to be revisited.

With more than five years’ experience implementing the VAT arrangement for healthcare clients, VAT Solutions has noticed of late a particular upsurge in enquiries from both large and medium-sized equity backers regarding their portfolios.

“The structure which we will have in place not only supports our growth strategy, but also aligns well with our plans going forward.”

Sean Quinlan, partner (Clearbrook Capital Partners)

Rob comments: “Our arrangement, born of the changes allowed by the Care Act 2014, is well suited to care group operators both large and small, and across all provisions. However, it is our corporate, equity-backed clients which are often quickest to grasp its potential.”

“We have used VAT Solutions for over five years and place a high value on their advice and our relationships with them. We have seen a significant monetary benefit from their range of services which has supported our ongoing operations as well as maximising funds available to invest in our expansion plans to allow us to continually widen our portfolio and so provide the high quality of care we deliver to more and more people.”

Matthew Capps, head of finance for developments and acquisitions (Kingsley Healthcare)

Rob continues: “Our services are always adopted readily by those who are seeking to develop, expand and strengthen the sustainability of their portfolios. Our healthcare investor clients are proactive players in the market, and they embrace and understand the real potential of the structuring we offer in terms of VAT and positive impact on cash flow. The combination of the fact that the returns are brought about promptly in our tried and tested manner, with the added assurance that our corporate pedigree fits theirs, make our VAT arrangement an attractive one for any investor to explore. However, given the diversity of backers which the healthcare sector attracts, there can certainly be no ‘one-size-fits-all’ structure and approach to a VAT strategy for growth.”

This article is sponsored content.


Contact Clare Newboult at VAT Solutions
clare@vatsol.com
0114 280 3630

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