AUDIO: Big operators are expanding and the number of smaller providers are reducing but Australia’s aged care sector will continue to be dominated by organisations with five facilities or fewer in five years’ time, according to industry expert Cam Ansell.
Mr Ansell, director of Ansell Strategic, told the Leading Age Services Australia Congress in Adelaide on Monday that investor appetite was growing at unprecedented levels and that sales, mergers and acquisitions would continue to increase.
However, he told delegates that the most successful and least profitable providers were larger ones and warned against expanding too quickly and without a winning formula.
Following his presentation, Mr Ansell told the NEWSROOM that the shift to predominantly larger providers would be gradual.
Here he speaks to AAA’s Natasha Egan and gives an insight into who is buying and selling:
Here Mr Ansell talks about why providers are buying and selling, and sometimes both, as well as the biggest risk to watch out for:
Related AAA coverage: Investor appetite builds in aged care