Tariff turmoil? Volatile and still-high interest rates? Uncertainty surrounding Medicaid spending, labor costs and HUD’s queue length? Seniors housing and care dealmakers have looked past a lot of this noise to announce 50 transactions in the first three weeks of the second quarter, putting the market on track for the busiest M&A period ever. We know we sound like a broken record, but the start of April did feel like we reached a new level of activity, and given the conversations we’ve been having in the last few weeks, the second and third quarters may only accelerate in deal volume.
For some sellers, seeing through the January 2025 rate increases was enough to enter the transaction process, a number of which culminated in April closings. Other deals were marketed and mostly consummated in the Fall of last year, after the first rate decrease by the Fed, and delays pushed closing to just now. We are consistently hearing that deals are still taking as long as they did in 2023 and 2024, which makes the current level of activity that much more impressive. The lack of new construction now and in the near-term will also push more dollars into the M&A space, where you can find much better deals and potential returns.
With so much going on, and the market likely to pick up in the next couple of quarters, there’s even more reason to attend our webinar tomorrow, where we’ll cover what type of transactions (M&A and financings) are making up today’s market, rather than last year’s market. See you at 1:00 PM Eastern tomorrow.
