You want to sell your nursing home? If so, it's good to know what the acquisition market looks like in the area of nursing homes. Staff shortages are putting pressure on the healthcare industry. Add to this the increasing aging population and digitalization, and you understand that care centers face enormous challenges.
The number of nursing home mergers and acquisitions has been stable for years.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In healthcare and pharmaceuticals, the sector to which nursing homes belong, an indicative EBITDA multiple range of 5.9 to 6.9 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the healthcare & pharmaceuticals sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in healthcare & pharmaceuticals. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are relatively many larger organizations in this sector, and therefore the number of businesses with 2 or more employees is quite high.
In figures, the number of nursing homes in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes over the next few years, but also offer nursing homes many growth and acquisition opportunities:
Care home residents are increasingly familiar with digital options. From whatsapp to email to video calling, baby boomers are finding their way around. Especially in times of corona and busy family schedules, digitization is the solution to staying in touch with the outside world. According to large-scale research, only 46% of institutions now offer Internet access to their residents. So opportunities for nursing homes!
Traditional care is also taking a different turn in nursing homes. Where previously the emphasis was on curative care, today there is more focus on preventive care. Fall prevention, eHealth and living at home longer are areas of focus. Replacing medication use with a healthier lifestyle to promote independence in the elderly is a renewed trend in geriatrics.
The Netherlands is aging. For years, but especially now that the baby boomer generation is slowly reaching the age where intensive care is needed, the effects are only becoming visible. This aging population means considerable work for nursing homes. Because how do we ensure that these elderly people can spend their last years in the best possible health with the best possible care?
