The Management has decided to acquire existing small and mid-size senior living management companies along with their units.
Management plans to build-up a comprehensive portfolio through a selected choice of attractive, discounted and pre and post-bankruptcy deals.
Management has identified the underserved cities with highest need for such services.
Management has already identified two possible targets and started negotiations. Acquisition price of each is around EUR35mn. Each target company has around 1400 beds.
Management is willing to contribute 20 – 25% of the required capital.

Existing group buy-out 1: Units (# of beds)
- Castilla y León: 5 (480)
- Castilla La Mancha: 2 (230)
- Madrid: 1 (150)
- Murcia: 2 (240)
- Canary Islands: 1 (125)

Existing group buy-out 2:
- Comunitat Valenciana: 6 (479)
- Balearic Islands: 7 (902)

Value Enhancement:
- Increase occupancy rate
- Increase margins (target is 17% on total sales)
- Reduction in costs, amortization and depreciation costs
- Application of economies of scale.

Market Overview:
The senior Living sector in Spain is very atomized , with over 5,000 residences, 3,800 of them in private hands.
Total number of residents is ~360,000, over 260,000 of them private.
The sector lacks professionalism.
Spain’s regulatory framework set to put the elderly care on top priority list. (new law October 2015)
Existence of over 600 multi-residence small and mid-sized groups for a good roll-up strategy.
The percentage of elderly people is expected to grow in Spain.
There already is insufficient elderly care space available in Spain, which will only accelerate in time if not remedied.
The number of applications for dependents and assisted care is ever increasing.
The private sector will have to be a major actor in transforming the residential space in Spain, given the constraints in national budget policies, which in turn are allowing the different private participants to enhance their position, by reducing the logical competition the public sector would offer.
As the public finances in Spain have deteriorated, the amount of co-payment by users have increased.
Statisctics shows that the median price people are willing to pay for a private home service is ~EUR1830/month.
Despite the declining economic conditions and the increase in savings ratio by the average household, the actual price of every private residence unit in Spain has been on a steady rise since 2008.

Financials: Figures in EUR mn
Years Revenue EBITDA
2019 75 15.7
2018 59 11.7
2017 47 9
2016 35 6

Projections assume additional investments in the coming years to keep acquiring new units.

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