Contents page 1 — earning money with care page 2 — the size is a competitive advantage page 3 — Bad care is not worth it On a page to read
Up to the year 2008, a small nursing home chain was Alloheim, founded in Bad Marienberg, a Spa town in the West forest. 13 old people’s homes belonged to the company. Then, the British Private Equity Investor star capital discovered the company, he sees in the German nursing care market is an “attractive investment opportunity”. Now it’s no longer just about nursing, it’s about growth. Star capital buys more homes, standardized processes.
five years After the London sell the Alloheim chain now has 49 homes for 180 million euros to the New York-based investment company Carlyle. Also would like to Expansion – and to expand Alloheim to a care group with more than 160 houses. By the end of 2017, the New Yorker, a flick through the sale of Alloheim to the Swedish Investor Nordic Capital to 1.1 billion euros. And Nordic? Buys the Cologne-based nursing home operator CMS with 23 facilities. No longer a small company, but a European company is Alloheim. And with more than 195 facilities, the second-largest nursing home operator in Germany.
The event Alloheim shows that financial investors have Old – and nursing homes as an Investment to be discovered. Never before have so many financial investors, mixed in Germany in the industry as this year. According to a study by the consulting firm E&Y eight of the ten largest carriers are now in private hands. It is a development that is not only seen by carers, staff in the homes and the unions is critical. Even the Federal Minister of health, Jens Spahn (CDU), the Trend is not straightforward and recently criticized the high return expectations of care in an article for the Handelsblatt. He is not concerned only with the “efficient use of limited resources”, but also to the “good nursing care”.
But the care is actually threatened? It has consequences for everyday Care, if the home suddenly heard an Investor from the USA? To answer that, one must first understand why nursing homes are so interesting for the financial industry.
firstly, is the risk manageable: no longer Can a resident of the accommodation costs to pay, the social assistance, so in the end the taxpayers. On the other hand, the prospects are attractive: In the care of around 50 billion euros per year are implemented, by 2030 it could be also due to the demographic change – 85 billion euros, according to consultancy Roland Berger.
© Michael stern Tina Groll
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Add to this that there are still plenty of opportunities to Grow, because the market is highly fragmented. Especially many medium-sized nursing home groups are popular takeover candidates. “Even the largest operators make up only a few percent of the total market,” says market expert Holger Göpel. He is editor-in-chief of the magazine sgpReport and knows the sector very well, the nursing home operator. Currently Private-Equity-companies and stock market-listed care companies such as Korian from France on course for growth, says goepel.
The market leader among the Old – and nursing home operators Korian
The French nursing group Korian has 235 nursing homes, 52 Assisted Living facilities, and 28 Outpatient services, the market leader in Germany. In the facilities currently around 28,000 care are cared for the needy.
Behind the company, among other things, French insurance companies and a canadian pension Fund put. Through various Acquisitions, among other things, Korian 2016, acquired the nursing home operator Casa Reha of the investment company HG Capital, as well as the maintenance company Phönix and Curanum has increased six-fold, the entire group’s revenue within ten years to around 3.1 billion euros. In 2021 there will be 3.8 billion. According to own statements of Korian generated in the year 2017, nearly 900 million euros in Germany.