One in four care home operators will be looking to sell during 2023, according to a survey by Christie & Co for its 2023 Business Outlook report.
The business broker’s overview of the care market also suggests that the economy will contract in 2023. Business distress and insolvency in care will be exacerbated by insufficient local authority fee rates, higher input costs and interest rates and a contraction in lending.
According to the report, care businesses accounted for the highest percentage of distressed assets sold in 2022 – at one in three of all assets of this type sold.
On the plus side, Christie forecasts that occupancy rates in care should return to pre-Pandemic levels by the year end. Environment, Social and Governance (ESG) in care is expected to prove particularly attractive to investors.