Social welfare facilities, continuing fragmentation despite concentration process

The German market for social welfare facilities is considerably more fragmented than in other European countries. Even numerous acquisitions have not changed this situation fundamentally, as most of them only affected larger companies. Following the wave of mergers and acquisitions of the past few years, the 25 largest operators only make up 18.5% of the market.

Many small operators that manage fewer than 20 nursing homes will face economic difficulties. There are also many family businesses, which have to make short-term or medium-term succession plans. Such businesses often work with outdated properties that are no longer fit for the modern market. But those sites often offer considerable market potential, especially due to an increasing demand for nursing care, which makes the structures in question worthwhile objects for renovation and economic restructuring.