Although market activity has slowed from recent peak levels, we are seeing continued interest within the sector, particularly from investors for example private equity.

With interest rates remaining high, there is pressure on raising debt finance, and the ability for businesses to absorb higher interest rates. This is exacerbated by workforce costs remaining high and ongoing pressures in staffing, and the inflationary impact on other costs.

Consequently, there is a squeeze in margins as businesses struggle to pass on rising costs to their customers and public sector funding remains challenging.

Looking forward, we see significant opportunities for growth in the sector. In particular, the trend towards digitalisation and greater efficiencies through technology advancements. This needs to be balanced with the commercial needs of the business whilst ensuring quality of patient care delivery. ESG is likely to become more central to business strategy and investor requirements going forward.

This is going to require additional investment as it is still in its infancy within the sector for mid-market businesses.