CareTech

CareTech provide specialist care services to people with learning disabilities. From its formation in 1993 CareTech grew quickly through a mixture of organic development and single and multiple site acquisitions. The company went through two rounds of private equity funding, repaying these before it engaged Brewin Dolphin to advise on an AIM market listing.

Identifying this as a proposition that would be very attractive to institutional investors, Brewin Dolphin engaged with CareTech before the company made the strategic decision to float. The main investment attractions are the high sustainable margins, visible revenues and a first class management team. Early target identification is a benefit of our sector driven approach.

Following a competitive selection process CareTech appointed Brewin Dolphin as broker and financial adviser to target a flotation in late 2005.

CareTech floated on the AIM market in October 2005 raising £25.8m. This enabled some of the management team to realise a proportion of the value that they had created as well as providing £10m of new funds with which to support expansion. The £58m valuation achieved was at the top end of the indicated range at the time of our appointment.

CareTech viewed the wider access to capital that a flotation would bring as key to capturing the extensive expansion opportunities that were available. A period of strong growth followed as the company proceeded to consolidate the highly fragmented specialist care market. During this period the company consistently beat market expectations and delivered strong forecast increases through both accelerated organic development and acquisitions.