The fostering sector has seen significant consolidation in recent years, with the largest six players now accounting for 51% of all Independent Fostering Agency ("IFA") households.
With the number of looked after children continuing to increase, there is a general consensus that fostering offers the most appropriate environment for most children in care, whilst also being more economical for local authorities than residential homes.
These growing demand drivers, combined with stagnant local authority provision, mean that the IFA market is set to expand further in the coming years. This is likely to drive M&A activity, with further deals amongst the largest players and new entrants looking to consolidate on a regional basis.
Our report provides an overview of the key themes in the market, highlights the most active acquirers, and discusses the core drivers when valuing an IFA. To download a copy of the report click here: LINK