Affinity Care Group
What is Affinity?
Actively managed UK Care Home Group• High potential care homes acquired at market value
• Acquisitions grouped and organised under single brand name (Affinity Care Group)
• Managed by an established care home management company (Affinity Care Homes)
• Acquisitions grouped and organised under single brand name (Affinity Care Group)
• Managed by an established care home management company (Affinity Care Homes)
How will value be created?• Development – increase number of beds by a minimum of 15% through selective development
• Operational improvements - optimise patient mix to increase fees by over 3%-4% per annum & increase efficiency and operating margin with experienced operator
Realisation• Proposed term of 7 years
• Exit at a 10% - 15% premium EBITDAR multiple to reflect size, turnover and profitability of the group
Why invest in Care Homes?Solid fundamentals
* Demographics: rising numbers of over 85’s (key target market)
* Occupancy rates 92%
* Market is undersupplied
* Increased regulatory pressure on sector is forcing consolidation and closures for small independents
Profitable business model
* Average fees up 15% (nursing) & 29% (care home) in past 2 years
* Operating profit margins of circa 32%
* Asset backed
Positive outlook for demand“There will be an emerging beds shortfall of 58,000 beds between 2005 and 2010 and an additional 105,000 between 2010 and 2020” (Laing and Buisson).
Investment Opportunity
Opportunity for investors to buy into attractive and growing sector at good multiple
Create a 700 plus bed branded care home group
Sector underpinned by strong macroeconomic factors
Fragmented market
Experienced Promoter team with a strong track record and complementary skill set
Realistic and achievable strategy
Promoters only make money if investors make money
For more information, please contact:
Tel: 0044 1202 721616
Attn: Billie Brown
mailto:mbilliebrown@affinitycarehomes.co.uk
http://www.affinitycarehomes.co.uk/
