60 Seconds With Ben Swett: Staffing Scarcity Stunting the Recovery?
Driving through New England this past weekend, I was struck by the number of “help wanted” and “we’re hiring” signs across dozens of storefronts and billboards advertising job fairs for many types of businesses. All I kept thinking about was how senior care facilities were faring across the country with finding help. Not only that – qualified help. We know that senior care jobs paying somewhere just above minimum wage can be difficult, emotionally draining and receive little positive recognition from the public. So higher overall wages and hiring bonuses could easily sway a chunk of the labor force to other industries and away from senior care, which will need many... Read More »60 Seconds With Ben Swett: Assisted Living – Where Are Values Now?
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... Read More »60 Seconds With Steve Monroe: Capital Senior Living Butting Heads
Transcript A few weeks ago, we wrote about the proposed recapitalization of Capital Senior Living. This will give effective control to the investor, Conversant Capital, and result in a lot of dilution to existing shareholders. The investment is also very expensive. We thought that Cap Senior may have had no other choice: either this or face a major liquidity crunch, and possibly bankruptcy. One investor, Ortelius Advisors, with just under a 10% interest, thinks differently, and blasted management in writing. They think there are other ways to recap the company, and that other like-minded shareholders would be willing to help out financially as well. This may all be true, but where were... Read More »60 Seconds with Ben Swett: A Strong M&A Start to August
Transcript We know the market really turned a corner this June when 45 deals were announced after a rather tepid Spring, including three of the largest transactions seen in multiple years. And we’ll be talking about the importance of that month in the upcoming issue of The SeniorCare Investor. Even July, when many of us hit the beach, or would like to, an impressive 35 transactions were publicly disclosed. But it appears that strength will continue into August, as 18 separate transactions have been announced in just the last few days. And we know of a couple of confidential transactions that could have boosted that number even more. August’s M&A total will only grow as public companies... Read More »