The value of new investment in the care sector

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

|By Ian Wilkie, director, GLP| We are fortunate to enjoy a good relationship with the corporate providers of long term care in the UK. I have to admit to being surprised recently by reaction and comment emanating from some of these companies in response to prices being paid (not just asked) in the present market. There is a theme expressed in varied observation, including prices being described as “unrealistic” or “not sustainable” and “we¹ll pay that price when the market gets there”. It appears to me that the market is “there” already, and the prices quoted, be they bed values or multiples of earnings, are based on actual deals being done. Don¹t just take my word for it. At the Laing & Buisson Annual Long Term Care for Older People Conference in March, FPD Savills quoted average multiples of earnings at 6.92 for deals in 2002, with a similar figure for the first quarter of 2003 and average bed values at nearly £42,000. These figures are supported, and in some cases surpassed, by deals we have been involv

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