Grant Thornton's Private Equity Barometer shows that private equity firms are increasingly looking to invest and prepared to pay higher prices across all sectors. Its quarterly survey of more than 100 private equity executives in the UK found 80% expect to see an increase in volume of new investments over the next 12 months, compared to 71% who expected an increase in Q4 2009.

"Private Equity firms are currently putting their money where their mouth is. We know that at least ten mid-market deals have been reported in March alone, six of which Grant Thornton has advised on. It is a clear sign of confidence returning to the market. Deal activity is also driven by the fact that half of the private equity firms still need to invest more than 50% of their funds," comments (right) Mo Merali, head of Private Equity at Grant Thornton.

Some 78% of responses identify unrealistic vendor pricing as one main obstacle to closing deals in 2010 (Q4 2009: 81%) 77% name the tough trading environment (Q4 2009: 73%), compared to 59% who indicate that difficulty in raising debt financing to support new investments would be one of the main obstacles (Q4 2009: 51%).

"Even though private equity respondents voice concern about unrealistic vendor pricing, they also indicate that they are prepared to pay much higher prices for quality assets," Merali points out. On average, [they] are prepared to pay EBITDA multiples of up to 7.9 for healthcare, 6.4 for industrials, 6.2 for business support and 7.7 for high technology.

Only three months earlier (in Q4, 2009), private equity respondents expected EBITDA multiples to amount to 7.1 for healthcare, 4.7 for industrials, 5.8 for business support and 7.2 for high technology.

"The swell of quality assets coming to market in recent weeks has increased private equity appetite. Listed companies and multinationals in particular are increasingly disposing of quality assets in the UK to focus on their core business. We have just advised the management of Kerridge Commercial Systems  on a buyout backed by NVM Private Equity. The UK-based developer of Enterprise Resource Planning software was sold by a subsidiary of US-listed ADP Inc," Merali says.

Almost 80% of private equity respondents expect to complete a trade sale in the coming twelve months. At the same time, less than a quarter of respondents rate the exit environment as good. This compares to 39% who expect to sell a portfolio firm to another private equity firm and 16% who plan to take a portfolio firm public.

"This is the first time in years that the number of private equity firms planning to exit investments via trade sale is so much higher than those planning secondary buyouts or IPOs," he concludes.

Healthcare and telehealth

If healthcare and technology are combined one area that looks to have good growth potential is telehealth and as part of its strategy to put its geography at the forefront of a potentially lucrative emerging sector, Highlands and Islands Enterprise (HIE) is to host a high level summit on the future of telehealthcare.

Challenges of managingageing populations and moving towards a low carbon economy are driving interest in delivering healthcare from a distance through advances in ICT.

To discuss how the region could lead in this demand, around 50 delegates have been invited to Aldourie Castle (right), Loch Ness, in May to contribute ideas on delivery of telehealthcare in Scotland and on building a telehealthcare cluster of international repute.

Dr Steven Dodsworth (left) HIE's head of life sciences notes "This region offers great potential to be a centre of excellence in this sector. We already have an encouraging number of companies developing expertise in this field who are working alongside healthcare professionals and communities to overcome the challenges of healthcare at a distance.

"The Centre for Rural Healthcare in Inverness' Centre for Health Science is highly regarded and with the Inverness Campus in prospect, we look forward to sharing views with the sector's leading public and private operators on a future full of opportunity."

Telehealthcare covers a range of services such as supporting elderly patients who wish to remain in their own homes; helping people to take control of long-term health conditions and enabling people in remote locations to consult health professionals with minimum inconvenience.

Harriet Dempster, (right) Highland Council's director of social work says: "This event will enable representatives from government, health and social care providers and patient groups to discuss ideas with Scottish companies and multinationals and to develop a shared vision. It represents a confident step in putting this region at the forefront of modern health and care delivery promising real benefits for the wellbeing of its residents."

Hybridise healthcare for patient privacy

It comes against a background of a report  that notes the “slow and inconsistent” provision of clinical portals and telehealth saying that if Scotland wants to become the world head in electronic health, then improved safeguards are required in patient privacy.

Meanwhile, Aberdeen-based Scottish Centre for Telehealth, (annual budget of about £1m) is to be incorporated with NHS 24. An NHS, Grampian spokesman is on the record that: “We support and recognise the clinical and patient benefits from the development of clinical portal technology”. While Telehealth is one of the board’s priorities and it has promised to work towards becoming a world leader in the field.

Scotland might also look at Texas

News is that a University of Texas at Austin School of Social Work researcher has received a $680,000 National Institute of Mental Health award to study the feasibility of a telehealth problem-solving treatment (PST) for homebound older individuals suffering from depression.

The short-term structured PST focuses on teaching and strengthening problem-solving coping skills for older adults in the Austin area.

"An easy access to low-cost videoconferencing tools is providing health providers the potential to meet the needs of this underserved population," said Dr Namkee Choi, (left) a gerontologist who specialises in late life depression research.

"With the current and projected shortage in mental health workforce to meet the needs of an increasing number of homebound older adults, we need to test the feasibility and cost-effectiveness of depression treatment via videoconferencing."

Choi found that 17.3% of 762 homebound older adults screened for depression by case managers of the Meals on Wheels and More program in Austin had clinically significant depressive symptoms and 8.4% had probable major depressive disorder.

"Rates are significantly higher than those among older adults in general," Choi said. "However, only a few depressed homebound older adults reported that they received any psychotherapy."

Social isolation imposed by chronic illness and functional limitations makes homebound individuals more vulnerable to depression than their mobility-unimpaired peers and the homebound state is a barrier to their receiving appropriate depression treatment.