Price sustainability in the care sector

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

We are seeing record valuations and a healthy merger and acquisition market in the care sector at the moment. Many pundits are saying that we are at the top of the market and prices are unsustainable. But they have been saying this for several months and may well be saying the same this time next year – barring the unforeseen. The truth is that we have, at the moment, a benign economic environment in the UK, with low inflation and interest rates and a plentiful supply of corporate debt financing, fuelled by good returns and institutional investors providing at least half of the leverage loan supply. Much of Europe is also doing well and even those countries that have caused concern in recent years, such as Germany and Italy, appear to be addressing some of the issues that have been restricting growth and diversity. In some quarters, concern is expressed about debt, not only in private equity deals but also in general business borrowing. Debt multiples are running at high levels but defaults in this market a

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