Hazlewoods Corporate Finance Lead Advisory and Transaction Services teams have continued to see an increase in deal volumes during 2015. During the year they advised on 46 completed transactions valued at £193 million, in addition to a number that sadly failed to complete. This was despite the apparent slowdown in deal volume from certain acquirers due to the election and, in the latter half of the year, the potential implications of the National Living Wage.
In late 2015 and start of 2016, we have witnessed a number of new entrants to the market agreeing deals as well as the corporate acquirers increasing momentum. Pipelines are strong and deal flow is positive as the implications of the National Living Wage become clearer and vendors accept the implications of this.
We view 2016 as a significant opportunity for buyers and sellers alike. The acquirers who had held back over the last 12 months will be keen to acquire good quality businesses, whilst many sellers have had enough of fee pressures, increasing staff costs and the bureaucracy involved in running a business.
A selection of the completed health and social care transactions undertaken during 2015 include:
- Acquisition advisory services to Caretech Community Services Limited on their acquisition of Spark of Genius Limited which operates 2 residential homes and a school offering 10 residential and 35 educational places.
- Lead advisory on the sale of Brighton and Sussex Care Limited.
- Financial due diligence services provided to Active Assistance (UK) Group Limited on their acquisition of Tania Brown Limited and Rehab Without Walls Limited.
- Financial due diligence services provided to, amongst others: Voyage Care; Carewatch Care Services; Dukes Colleges; Portman Healthcare; August Equity; Sovereign Capital Partners and a number of other acquirers.
- Lead advisory services provided to the vendors of The Extra Mile Care Company Limited on the sale to Alina Homecare.
- Advising on the disposal, tax planning and exit of businesses in the following sub-sectors:
- Supported Living;
- Domiciliary Care;
- Residential Learning Disability;
- Elderly Residential and Nursing;
- Foster Care.
For further information on this article, please contact a member of the team on 01242 246670.