The UK case management, expert witness and rehabilitation sector has seen significant M&A activity in recent years and this has continued into 2023.
Private equity and corporate acquirers continue to seek out niches of the healthcare market which remain fragmented and the case management sector still offers strong opportunities for consolidation.
As Active Care Group appears to have paused its roll up strategy, a range of other acquirers have stepped into their place, creating significant demand for quality regional and specialist case management businesses. Handl Group, Frenkel Topping and HCML (backed by Apposite Capital in 2021) have all now completed multiple deals, and whilst they look at the market from slightly different perspectives, their core rationale for deals is similar.
Through acquisition, these operators are looking to expand their geographical reach in what is primarily a relationship-driven and regionalised market, in addition to broadening the specialisms they can offer. These specialisms can include expertise in dealing with specific conditions and injuries, or within particular segments of the market such as children/young people.
The use of technology is also seen as a key way of improving efficiency and profitability, particularly in areas such as expert witness services where reports can be standardised. By generating scale through acquisitions, corporates can invest in systems and digital tools which streamline processes, leading to significant cost synergies.
Given the appetite of acquirers in the market and opportunity for further consolidation, we expect to see further deals across the sector in the short to mid-term.
If you operate within the case management, expert witness and rehabilitation sector and are considering a sale of your business or making acquisitions, we would be happy to discuss how we can help. Please get in touch by emailing firstname.lastname@example.org for an initial conversation.