I recently had the opportunity to speak at the ACSA Annual Finance Symposium about what I see as a “two speed economy” which is continuing to play out for not-for-profit residential aged care providers. This has and will continue to drive mergers and acquisitions in the sector.
At one end of the scale we have some very large recently completed or announced transactions. The top of mind examples are the 2021 takeover of then ASX listed Japara Healthcare by Calvary, and the proposed acquisition of Allity by Bolton & Clarke. These transactions will see Calvary and Bolton & Clarke take their place as two of the largest residential aged care providers in Australia. Other privately owned providers are probably considering their options.
At the other end of the scale, we are seeing many smaller providers struggle with compliance burdens, attracting and retaining enough quality staff, likely ongoing changes to legal regulation, and funding challenges. It is often the case that Boards (who are typically volunteers) do not have a true understanding of their situation or a willingness to improve or seriously consider merger options.
My key takeaways:
- If you are a potential acquirer, be ready for more acquisition opportunities
- Doing nothing in today’s disruptive environment is not a viable strategy
- If exiting is an option, don’t leave it too late – it takes time to prepare
- Ask me and our expert M&A team for help
How we can help
If you require assistance in relation to commercial transactions in the aged care and retirement living sectors, please do not hesitate to contact Rohan Harris or the broader Russell Kennedy Aged Care Team.
If you would like to keep up to date with Alerts, news and Insights from our aged care team, you can subscribe to our mailing list here.
Other useful resources
Key Personnel obligations for all approved aged care providers take effect 1 December 2022
Russell Kennedy Key Personnel Package of Documents: Russell Kennedy has developed a range of resources that approved providers can purchase individually or as a pack to ensure compliance with the new requirements of key personnel. We have a Key Personnel Suitability Matters Information and Assessment Form and Guide to assist with gathering and assessing the information. We have letters and guides for key personnel explaining the changes, the regulatory context and their key obligations. We have also developed a template policy, as well as clauses for agreements and contracts.
Download our flyer here to find out about the key personnel package, and email rkagedcare@rk.com.au to find out about pricing and to purchase all or any of the resources available.