Healthcare buyers and sellers ‘need to find new equilibrium’

Healthcare developers and other vendors are currently struggling because they face a cost explosion on one hand and, on the other, construction delays and a lack of qualified personnel. So says Nikolai Schmidt, MD, transaction health care, Swiss Life Asset Managers.

Schmidt explained that investors are not now able to pay the purchase prices that they were able to up until January 2022 when interest rates rose from 1% to 4.5%.

“That’s not a state we can hold right now, so we have to find a new equilibrium in investment between vendor and buyer so that you will be able to invest in healthcare in the future,” Schmidt said.

“I’m really confident that we will achieve that in the end, but I don’t know when it will happen.”

He added that it could 12 to 15 months to establish this new equilibrium.

Please click on the video above to watch the full interview or listen to the podcast below.