Late heat of summer ­ a City view


Posted on July 1st, by editor in Caring Times. No Comments

|By MATTHEW GASH, director, head of healthcare finance, Fortis Bank| The summer finally hotted-up. I am not referring to the recent phase of good weather in September, but rather the spate of corporate activity over recent months: principally acquisitions and investments in the care home sector. What conclusions can we draw from Allianz¹s dramatic £775m acquisition of Four Seasons? Much has been said and quite a lot of it inaccurate ­ such as Alchemy¹s £300m profit on the sale of Four Seasons. At least we can put that one to rest ­ Four Seasons cost £200m to assemble as a single business. In addition, the vendor will have to have made the deduction for the fact that Allianz will inherit Four Seasons¹ considerable corporate debt ­ some £420m of bonds and loans ­ that makes a profit of £155m, or thereabouts. Still pretty good going for a few years¹ work. More interesting are the valuation assumptions made. Large corporate acquisitions where the VCs (Venture Capitalists) play pass the relay baton, b





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