60 Seconds With Swett: 2022 M&A Results and Valuation Statistics
As we look back on 2022, in terms of M&A, it was a tale of two years, split by a low-interest rate environment in the first half and high rates in the second half which killed many deals and sunk most property values. Signs from the Fed point to interest rates remaining around this elevated level, or even higher, for most of 2023, so the M&A market of this year will likely look very similar to the market of the second half of last year. So, it could be helpful to know where did values settle across the different sectors and property types last year? How did a property’s age, quality, occupancy, operating margin or location affect its valuation? How have buyers’ strategies shifted... Read More »
60 Seconds with Steve Monroe: Why the SNF Investment Market Is Strong
The annual eCAP Summit in Florida has come to an end, and with more than 1,500 attendees, let’s just say there is a lot of interest from investors. The mood, however, was a bit more subdued than last year, according to our editor who attended. But does the investment interest make sense when the American Health Care Association continues to claim that if things don’t change, 52% of nursing home operators may not make it past this year? And 55% of AHCA’s members responding to a survey say they are operating at a loss. The problem is that no one identifies what a “loss” is. If a “net loss,” then it is after all capital costs and non-cash depreciation expense. But why the loss? And why buy... Read More »
60 Seconds With Swett: Assessing Industry Sentiment at ASHA and eCap
It was great to see so many in the industry in Scottsdale last week at ASHA’s annual meeting, but we can’t say the mood was as positive. Some industry veterans didn’t sugarcoat it and commented to us that we are in the most difficult operating environment they have ever seen. Tough to argue with that. Then you had dealmakers fresh off of a myriad of deals postponed, terminated or re-traded, with only a tiny fraction of transactions closing without issues. Then you have other problems like soaring property insurance costs that can throw a wrench in a deal, to put it mildly, and will be a bigger issue when the time comes for hundreds of properties to renew their policies. We will dive deeper... Read More »
60 Seconds With Swett: Healthcare M&A Activity Broke a Record in 2022, Too
Last week, we confirmed that long-term care M&A activity hit a record in 2022, but what about for the healthcare market as a whole? Across all other healthcare sectors, from home health and hospitals to physician groups and biotech, our sister site LevinPro HC tracked nearly 2,400 deals in 2022, or 2,392 to be exact at this moment, but we expect that number to creep up in the coming days and weeks. That does not even include the over-500 long-term care deals, and represents an 8% increase over the previous record of 2,214 deals in 2021. For many investors, the long-term demographics, strong governmental support and attractive yields in the healthcare industry are too good to pass up,... Read More »
60 Seconds With Swett: M&A Market Limps to Record Annual Total
We’re in a new year but a number of brokers and lenders may wish we were still in 2022. That is because many of them really made hay when the sun was shining (that sun being the lower interest rates of the first half of the year) and propelled us to a record M&A year, by some margin. After the previous record of 455 transactions in 2021, we have so far tallied 527 deals announced in 2022, a 16% increase year over year. We expect a few more 2022 deals to trickle in, but we did not experience the normal end-of-December rush of closings, except from a couple of brokerages. In fact, only 36 deals were made public during the month. That’s a solid number to end 2022 and similar to the... Read More »Schedule a demo
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