60 Seconds with Swett: WSJ’s Private Equity Analysis in Health Care
Last week, The Wall Street Journal published an article examining private equity activity in the healthcare M&A market, specifically that its activity was down compared with 2023 because of increased regulatory scrutiny and higher interest rates. The article cited Pitchbook transaction data, and some of the numbers left our editors at our sister platform LevinPro HC, which exclusively covers the healthcare M&A market, scratching their heads. According to Pitchbook, as cited in the article, there were 180 PE add-on deals, or when a PE firm buys a company through a portfolio company, through May 28. Our numbers are higher, as LevinPro HC recorded 193 deals from a PE-backed company,... Read More »
60 Seconds with Swett: How Serious Is the Minimum Staffing Mandate?
We conducted a survey of our readers, asking some questions on the skilled nursing M&A market. Most of the results will be featured in the June issue of The SeniorCare Investor, released later this week, but here are a couple of takeaways from it. First, we asked whether the threat of the minimum staffing mandate (as it currently stands) would impact buyer demand for SNFs. The majority, or 72%, said “somewhat” while 21% said “not at all.” Only 7% thought that there would be a significant impact. Posing the same question, but how lenders’ ability to lend for SNFs would be impacted, also saw the majority, or 64%, of respondents say “somewhat” and 14% believed it would have no impact.... Read More »
60 Seconds with Steve Monroe: What if Boomers Are Not the Disruptors?
How many times have you heard that the boomers will be major disruptors of the seniors housing sector, causing providers to rethink, and change, how they provide their care and services? Too many times? I admit, I have been guilty of this as well. But I have been thinking about this concept (I know, a scary thought), and now I have some doubts. What do seniors housing providers do? They provide housing, care, meals, and an environment for socialization, among other services, all in a safe setting. Since I am in the middle of the pack of boomers, I don’t see those services changing much. Tweaked? Of course. But the basics should always be there. Boomers are going to be very demanding, or so... Read More »
The Current Lending Environment for Senior Care Properties
The financing process has killed dozens (and hundreds) of deals in the last couple of years, and yet M&A activity is near record levels in the seniors housing and care industry. So deals are getting done, and not just with cash. Who has been lending and at what cost to the borrower? What hurdles have to be overcome? And when capital costs do lower, how can owners and operators best prepare to finance the oncoming wave of deals and demographics? Read More »
Sonida Senior Living On The Move
It has taken a while, and a lot had to be done to strengthen the balance sheet over the past two years, but Sonida Senior Living is now on a path of growth, and recent announcements have shown it. On May 9, the company closed on its first acquisition of the year with the purchase of a 100-unit assisted living and memory care community in Macedonia, Ohio. Built in 2015, the community has still not recovered from the challenges of the pandemic and changes in operators. The purchase price was $10.7 million, or $107,000 per unit, which seems quite cheap relative to what it would cost to replace, not to mention the original construction cost. They also bought it at a 43% discount to the... Read More »Schedule a demo
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