Support at Home: Building the Foundations for Growth

With the 1 November commencement of the Support at Home program approaching, we are seeing increased optimism across the sector. Providers are turning their attention to the opportunities ahead, supported by clearer program details and the announcement of the largest increase in package numbers the sector has seen. 

This is a genuine growth moment for the sector. But sustainable growth depends on financial and operational readiness — and too many organisations are still skipping foundational steps in favour of high-risk initiatives.

The Opportunity – And The Risk

We’re seeing renewed interest in mergers and acquisitions, often driven by board-level enthusiasm and strategic ambition. But in the current market, acquisitions are not easy wins. With the level of optimism now evident in the industry’s future, acquisition targets are attracting multiple bids, driving prices higher. It’s a strong seller’s market and only organisations with real operational strength are likely to succeed.

The winners in these competitive processes typically:

• Have addressed internal inefficiencies
• Are already profitable
• Can realise genuine synergies from the acquisition

These are not average performers. They are organisations that used the 2022–2025 transition period to improve core processes and financial performance. In contrast, providers pursuing acquisitions without this foundation often take on excessive risk with a low likelihood of success.

Build Before You Scale

In most cases, increased scale should not be the first priority. Growth does not automatically improve margins — especially in aged care, where most costs are variable. We frequently see providers operating at breakeven at $5 million in revenue, still breaking even at $10 million. Scale alone won’t fix underperformance. 

Process-led cash flow improvements, on the other hand, offer:

• Lower financial risk
• Greater and faster return
• Stronger M&A positioning in future, should acquisition opportunities emerge
   

Strategic Pathway: From Compliance To Growth

When sitting with clients with a blank sheet of paper, we use a staged pathway to assess and build growth readiness:

Channel Strategy: Underused, Understood

After performance, the next best growth lever is often already within reach. Many organisations underutilise proprietary or adjacent channels. These include:

• Community Home Support Programme (CHSP)
• Short Term Care Pathways
• Co-located retirement villages
• Religious or cultural communities
• Longstanding referral partnerships

We routinely ask about channel performance, only to find that no data is being collected. In reality, these low-cost, low-risk channels can unlock meaningful growth — and are often easier to scale than external acquisition.

Growth That Lasts

The Support at Home reforms bring real opportunity, but only for providers with the discipline to focus on fundamentals first. Strengthening compliance, improving internal processes, and activating unique channels are the foundations of smart growth. M&A may play a role — but for most, it’s a destination, not a starting point.

In recent months, we’ve worked with a range of providers on projects including:

• Operational restructures
• Entry into new service segments
• Cash flow improvement via process redesign
• Channel activation and expansion
• Select M&A transactions — only where aligned with risk appetite and capability

If you're considering your next steps, get in touch — we're happy to share what we're seeing work.