Aged Care Chair Web Banner

Current mergers and acquisitions activity in the aged care sector – by Rohan Harris

Rohan Harris

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.

View related insights

Are you raising your fees soon_Alert_23May

Home care providers: Are you raising your fees soon? Read this first!

23 May 2024

With the commencement of the Support at Home Program being deferred until 1 July 2025 many home care ...

View
aged-care-agreement-540x360

The proposed new Aged Care Act: how will it apply to retirement villages?

18 Apr 2024

The exposure draft for the Aged Care Bill 2023 was published on 14 December 2023. We refer to our pr ...

View
nurse-assisting-senior-with-walking-cane.jpg-540x360

Beware: associate, advisory or non-voting directors as members of an approved provider governing body

29 Nov 2023

As we help our approved provider clients prepare their governing bodies to include a majority of ind ...

View