9 minute read
Connected Health - Revolutionising The Concept Of Homecare
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As fast growth companies go, some fly above the radar in high profile sectors while others cruise below it in unheralded sectors of the economy.
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Connected Health is one of the Northern Ireland economy’s hidden gems. Proudly based in Belfast despite having expanded and grown in both GB and the Republic, the company is on a mission to revolutionise the concept of Homecare, combining the might of technology and the power of people to achieve its long-term goal.
“As a group of Directors, we took over the business seven years ago and since then we’ve grown the number of employees from 47 to 1,100,” says Director Ryan Williams. “Our people are carrying out more than three million physical home visits every year. That’s 30,000 hours of care per week across NI, GB and ROI.”
Born out of the former Care Circle operation, acquired by the Connected Health team led by CEO Douglas Adams, the Group is now one of the largest in the Homecare sector in Northern Ireland.
“We’re definitely trying to re-define what we do. We never liked the term ‘domiciliary care’, and we’re applying technology to almost everything we do. We’re a care company with an emphasis on technology, but we’re also a technology company with an emphasis on care.”
Ryan Williams and his colleagues talk about their three T’s – Talent, Training & Technology – with all three playing a part in how Connected Health does things.
It’s also a company that brings an energy, identity and new standards into an industry not always known for its innovation and fresh thinking. Visit Connected Health’s offices at Boucher Business Studios and the company’s personality is clear to see.... bright surroundings, a pervasive energy and a branding across everything from the Directors’ shirts to the office walls and even the coffee mugs.
“The old domiciliary care industry ran aground many years ago and the ship was simply rusting into the sea,” adds Williams. “There was no point in re-arranging the deckchairs. What it needed was a real shake-up, a real revolution.”
The industry, say the Connected Health team, had also stagnated at the point of delivery. Carers were clearlty undervalued by the entire health and social care system – we wanted to show their true value and contribution to the sector.
“In addition, we’ve been instrumental in lowering the average age of a care worker within our workforce from 52 to 27 years old, but more importantly, we’ve helped expand the range and type of functions carried out in people’s homes by those care workers – we’ve expanded the menu of Homecare.
“These days, our people can help clients to shower or bath, they can help them out of bed, they can make sure they take their medication, they can change stoma bags and oxygen tanks, they can engage in tech deployment and data collection – all with the right training. In business terms, it’s about moving up the value chain for our clients and the wider system.
“We’re well aware that almost all of our carers will go the extra mile. They’ll help their clients in whatever way they can, pro bono and outside of the terms and conditions of their contract. It’s a part of what we do, we’re more than happy to personalise our service and we’d never want to change that.”
Technology can also come in handy when it comes to everyday Homecare; Connected Health has both developed
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and deployed both virtual care services, innovative wearables and a range of proprietary technology on issues ranging from incontinence detection to automated medication support.
“There are significant challenges out there,” says Ryan Williams. “We have an ageing population and it’s simply not going to be enough to keep doing what we’ve always done.”
The company’s Director of Clinical Services & Training, Theresa Morrison, agrees.
“Take the question of training,” she says. “Training for carers has often been seen as a ‘do the minimum’ approach and it’s crucial that we work to change that. We also need to change the image of caring as a profession and develop real career paths for our caring professionals, pathways that can lead right up to senior management. It can’t be seen as a Cinderella industry for any longer. Here at Connected Health, we have a role to play on that policy agenda and landscape”.
The company has its own dedicated Connected Health Academy which offers tailored training courses for its employees and potentially the wider sector.
“What’s important for us is that we instill Connected Health standards and ways of working into every member of our team,” says Theresa Morrison.
The company managed to achieve 40% growth during the Covid pandemic. “That was largely because a number of providers struggled to continue delivery during the pandemic – for totally understandable reasons,” says Williams. “We kept working and kept providing our Homecare services throughout. We worked closely with the Trusts and the Department to establish dedicated Covid-specialist teams working in the community.”
Connected Health works with most of its clients through referrals from local Health Trusts - but it also offers a private version of its Homecare services to clients whose families pay for varying levels of assistance from carers.
Theresa Morrison, says that private care is their fastestgrowing area at the moment and offers a great area for additional innovation in terms of both products and services – essentially tech enabled Homecare.
Connected Health has set out clear growth plans for the coming years.
“We’ll look out for acquisition opportunities in both GB and the Republic, but we’ll grow organically at the same time. And our headquarters will definitely stay right here in Belfast,” says Douglas Adams.
“We want to grow our team from 1,100 to 4,500 over the next five years and we’re confident that the demand will be there in the community.
Dougie continues “No one wants to go into hospital. It’s seldom that anyone opts to enter a nursing home either. There is a demand, and it’s a growing demand, for the services that we offer, services that simply allow people to stay independent, healthy, and appropriately supported for longer.”
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Considering an acquisition post Covid
By Grainne Quinn, Licensed Insolvency Practitioner, ASM
2020 will go down in history as a year of change, as the pandemic accelerated the natural pace of change as businesses had to adapt to a new reality by capturing opportunities and redefining strategies to face the crisis with confidence.
Ayear on from the outbreak and merger and acquisition (M&A) activity has surged globally, as businesses and investment firms rushed to get ahead of changes on how individuals and businesses operate and trade during the pandemic.
Desired assets are scarcer than the capital available to buy them, driving strong competition on the buy side to go after ‘premium assets and capabilities’. Furthermore the pandemic has had little impact on the valuations of healthy businesses and even a positive impact on those ‘premium’ companies, especially the ones that traded well through 2020.
It is envisaged that M&A activity will accelerate further in the latter stages of 2021, as corporate and private investors continue to have access to capital and pursue deals to build scale and expand scope. For some, growth will come within industries, with market leaders strengthening their position as the economy continues to recover. Others, seeing their business models upended by the pandemic, will explore how businesses in adjacent sectors can help drive transformation.
If you are considering an acquisition post pandemic, there are a number of key areas that should be considered to reduce the risk and maximise your return, including:
1 Target the right business for you it is vital to buy a business that is the right fit for your skillset, experience or one that fits with your existing business. 2 Price – carry out an independent assessment/business valuation to establish the future potential of the business, what the target business is worth and how much you are willing to pay. Factors such as client retention, recurring revenues and new product development can have a significant impact on the business valuation, so it is vital to explore beyond the basic financials.
3 Heads of Agreement (HOA) –the HOA will outline the agreed price and commercial terms which will form part of the final agreements, and ensure that any misunderstandings are “flushed out” at an early stage.
4 Due diligence (DD) - DD is essential to develop a full understanding of the business and identify potential risks that might leave you exposed.
The DD process will also ensure key warranties necessary to protect the purchaser against any future liabilities are fully captured. The scope and level of the due diligence work will depend on the size and complexity of the target business, and depending on the outcome you might want to renegotiate the price or adjust the timing of the payment of the sales consideration.
5 Structure - careful tax planning is a key element in acquiring a business and should be carried out at an early stage in the process. Different structures will have their pros and cons and can have a significant impact on the tax liabilities you could face, including gains on the future disposal of the target business. 6 Funding - consideration needs to be given to the cashflow availability within the existing business and what funds it can commit to avoid over leveraging, in addition to assessing the ability to raise fresh funding in the target business.
7 Integration and managing change –
Company culture plays a major role in whether an acquisition will be a success or a failure. Maintain a focus on your key strategic objectives and your development plan and bring key employees with you on that journey to ensure early buy-in and efficient implementation.
When looking at acquiring a business, it is critical that you consider engaging a specialist M&A advisor who can bring a lot of added value and help protect and maximise your investment.
Grainne Quinn is a Director at ASM Chartered Accountants specialising in Corporate Finance and Restructuring & Insolvency. If you would like to discuss a potential business acquisition or disposal please feel free to contact Grainne on grainne.quinn@asmmagherafelt.com or on 028 7930 1777.
