60 Seconds with Swett: An Investor’s Guide to 2024: Buy, Sell, Finance & Thrive in Senior Care
Most are predicting similar conditions in the senior care M&A market next year, as compared with 2023, and that could be largely true with sustained high interest rates, operational and financial distress still out there and lower values. But taking advantage of the more subtle shifts in valuations, the lending environment, seller and listing profiles, acquisition strategies, distress and operational improvements could prime some for success in what should still be a difficult year. The decisions made in 2024 could also set the stage for many companies to excel in 2025 when M&A activity, new developments and valuations likely come storming back. We’ll be looking to the future... Read More »
60 Seconds with Swett: U.S. Senior Care Deal Activity Surpasses 400 Deals
Across U.S. senior care M&A activity, we have surpassed 400 transactions in the first 11 months of the year, hitting 402. That is more than 15% down from the 476 transactions recorded in the first 11 months of 2022, but we are not sure many would have predicted the market even exceeding 400 deals. Of course, deals will continue to trickle in from the previous months, and December could yield its usual rush of closings, but we would be lucky to reach 450 deals on the year, far below 2022’s U.S. total of 517 deals. However, believe it or not, 2023’s estimated annual deal count of, let’s conservatively call it 440 deals publicly announced in the U.S., would be a very healthy number,... Read More »
60 Seconds with Swett: CCRCs Still Ahead on Occupancy
Ziegler recently came out with its analysis of the latest NIC MAP occupancy statistics for CCRCs, or LPCs, and the sector continues to outperform the separate seniors housing and care sectors. For independent living units, the average occupancy for CCRCs was 90.5% compared with 84.2% for IL units not within a CCRC. In the assisted living sector, AL units within CCRCs were on average 87.5% occupied, versus 83.1% outside of CCRCs. Memory care averaged 86.5% occupancy within CCRCs and 83.4% outside of them, and skilled nursing beds were 83.6% and 82.2% occupied, respectively, although CCRCs have been shedding their SNF beds over the last several years and the beds remaining would... Read More »
60 Seconds with Monroe: Happy Thanksgiving
Rarely does the entire clinical staff at a nursing home walk out in protest of working conditions, but that was the case a few months ago in New Mexico. I was made aware of it when I received a call from an 82-year old woman in New Mexico who volunteers to help the elderly make decisions who are at the end of their life. The manager is a company called OpCo NM, very original, and apparently they have been buying up nursing homes in New Mexico. She believed the people running it were formerly associated with Skyline Healthcare, the company that walked away from more than 100 leased nursing homes after sucking all the cash from them. While I could not verify the connection, given what... Read More »
60 Seconds with Monroe: Are We Getting Too Big Again?
One of the consequences of the pandemic, one of many, is that the differentiation between the best operators and the not so good has been increasingly exposed. And of course, investors will seek out the best to manage their properties. But as this happens, the operators who are doing a good or even great job today will start to be spread too thin. Managing 20 communities is a lot different than 50, 100 or more. You can have the procedures and policies in place for 100 properties, but you do start to lose that personal touch, especially if the CEO is very hands on. With REITs and other investors doubling down on either their best operators, or finding others that they perceive to be top... Read More »Schedule a demo
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