The Business Desk.com - Care sector deal boost for Kuits

18-Aug-2011 LAW firm Kuits believes a change in the way private care homes are regulated is behind increasing deal flow from the healthcare sector.

The Manchester firm's specialist team advised on £15m-worth of deals in the first half of this year - and believes this figure could be eclipsed in the second half due to a strong pipeline.

Senior asociate Jan Winstanley said: "We have a number of other deals on at present and once these are completed, the value of transactions since December 2010 will be in excess of £33m. It seems to be the case that whilst the number of deals is in decline, values have increased.”

Manchester-based Kuits says a number of owner-operators are looking to sell their businesses, as market conditions in the sector become more challenging as local authority budgets come under pressure.

Employment, heating and food costs are also rising, while on the regulatory side the development of the Care Quality Commission’s ‘excellence scheme’ is also causing headaches.

The scheme has raised concerned for care home owners as they are unsure of how their services and capabilities will be judged in the future.

Winstanley adds: "The market uncertainties have clearly led many operators and owners to think about their exit strategies, while some operators are recognising that, provided they can obtain appropriate funding, there are good value deals to be had within a sector which has future potential given the ageing population and increasing demand for quality care.”

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