You want to sell your nursing home? Then it's good to know what the takeover market in the nursing home field looks like. Nursing homes provide large-scale housing for seniors, who need nursing or care, but do not need to stay in the hospital.
Healthy seniors want to stay at home for a long time, but despite this, the demand for nursing homes continues to rise. Demand exceeds supply, and this will only become a more pressing situation in the coming 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 the healthcare & pharmaceuticals sector, which includes a nursing home, an indicative range of EBITDA multiple 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 many small-scale residences in the industry, so there are also many businesses with small teams visible.
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:
The number of elderly people is increasing, but it is not only native-born seniors who are looking for a secure home for their old age. Immigrants also want a place in a nursing home when staying at home is no longer an option. This is a new challenge for organizations and entrepreneurs in this sector, because there must be employees who can provide care, but also know the cultural customs and speak the language, according to the Ministry of Health.
No one is alike, and this is a stumbling block especially in healthcare, where personalized healthcare can offer a solution. Illness is no longer the starting point, but health. What does a patient need to become the best version of themselves?
Sustainable homes where seniors can become independent and purchase care as needed; this is the new form of small-scale nursing homes. This requires some care staff and staffing, as care is not definitely needed 24/7, but it must be available on call, according to Rabobank.
