+
Welcome to Churchlake
Churchlake Care was established as a private company run by a team of experienced executives and led by well-respected board of directors. The group is highly experienced in property, healthcare, corporate finance, accounting, commercial negotiations, contract law mergers & acquisitions. The group’s strategy is grow through acquisition of clusters and/or individual operating homes. From a geographic standpoint, the company’s core investments will am to facilitate operational concentration by developing key relations with local authorities and other stakeholders, and capturing logistical and staffing synergies across a regional focus. Our hallmark is to create exceptional value by focusing on homes which can benefit from consolidation, investment to add value and an uplift in the quality of care provided. A home away from home is our main goal.
+
The Investment Outlook
The key driver in the space during the next ten to fifteen years is the aging baby boomer demographic. The number of people over 85 in the UK is expected to double within the next 23 years. Despite the demographic aspect which indicate a positive future for the care home industry, the number of beds available fell recently. The profit margin of most care home businesses has been under severe pressure due to real-term reductions in fees from local authorities, the implementation of the national living wage, new workplace pensions, Brexit, a shortage of trained staff ( creating the need to hire high cost agency staff ) and the continued requirement of the CQC to improve the quality of care provided. The industry in general is fragmented. Some 90 percent of Britian’s care homes are privately owned and operated by families which may be too small and inefficient to secure long-term financial viability. The top ten largest providers hold just 24.6 percent of the market (number of beds), including Four Seasons … The largest provider with only 6.1 percent of the market.
The industry is in a difficult transition period as it is undergoing cost increase. However, it is expected that fees from local authorities must eventually rise so as to derive stability of margins. In the end, local authorities will be forced to accede to “reasonable” annual baseline fee uplifts in order to avoid further judicial review challenges by care home operators. Although economists may encourage local authorities to increase the provision of domiciliary care, there is no need to strike a balance with the core requirements of the individuals as well as the quality of life provided by care homes. The group’s goal is to acquire successful homes driven by high revenue and add value in the next 3-5 years thereby creating a portfolio of care homes of at least 1000 beds, depending on the care through training we aim to raise EBITDA. Churchlake have engaged with a number of advisors so as to be able to move forward expeditiously in the M&A market. The big four accountancy firm PWC will advise on due diligence, corporate finance, accounting, transaction services and tax whilst the prestigious law firm of Charles Russell Speechlys LLP will act for Churchlake in a legal capacity.