More than seven months into 2021, assisted living communities have been the most popular targets in the M&A market, representing a plurality, or 41%, of all transactions in the year, so far. Average prices have also risen compared with last year, according to our in-house statistics. But we still have many questions about the market’s fundamentals, what is motivating investors, and how different facilities are being valued today.
Has pent-up demand already exhausted itself for this need-based product? Is the recovery meeting expectations, particularly for cash flow rather than just census? Are stand-alone communities preferred, or a continuum of care? These types could be valued very differently post-pandemic, as well. For existing owners, can this be a good time to sell? And what is the safer bet right now? Higher quality comes with a higher basis and higher capital costs, after all. I will be asking these questions and hopefully some of yours in our webinar, sponsored by Ziegler, on Thursday, August 26: “Assisted Living: Where are Values Now?” Hope to see you then.
