Skilled Nursing Values Drop In Last Four Quarters
It still may be too early to tell, but according to our rolling-four quarter M&A statistics, it appears that skilled nursing values have started their descent in light of the COVID-19 pandemic. We say it may be too early simply because of how few transactions have been negotiated and closed since the onset of the virus, and we base our statistics on closed transactions, not just announced ones. The rolling-four quarter average also still consists of three quarters of prices that were not affected by the pandemic and that represent a larger share of the past 12 months of deals than normal because of the dearth of deals in Q2:2020. Nevertheless, the average price... Read More »
Second Quarter Healthcare M&A Drops
The decline in second quarter healthcare M&A probably won’t surprise many of our readers. The second quarter was the first full quarter of healthcare M&A in the shadow of the COVID-19 pandemic, and deal making took a hit as a result, as shown in results from our Deal Search Online database. Compared with Q1:20, Q2:20 dropped 20%, with 322 transactions on the books. Compared with Q2:19 (486 transactions), deal volume in Q2:20 declined even further at 34%. Source: Health Care M&A, July 2020 Long-Term Care and Physician Medical Groups were among the hardest hit sectors, declining 40% and 50% in activity compared with Q1:20, respectively. Year-over-year, the difference... Read More »
Average Seniors Housing Occupancy Falls To Record-Low
The latest occupancy figures are out from NIC, and we suppose it could have been worse. Seniors housing communities reported that their census dropped on average by 280 basis points in the second quarter of 2020, from 87.7% to 84.5%. That is the lowest level ever recorded since NIC started reporting this data 14 years ago. Separating the market out, assisted living communities experienced a steeper decline, from 85.3% to 82.1% during the quarter, while independent living, which was in better health as a sector going into the pandemic, fell 240 basis points to 87.4%. Given the longer lengths of stay and the younger, healthier residents in independent living, that makes sense. Being a more... Read More »
One Small Provider Tackles The Coronavirus, And Performs
As we all know by now, the coronavirus has been impacting providers very differently. Some not-for-profits have been spared, while others have suffered greatly. The very large national providers have seen surges in positive cases and deaths in some of their buildings, while other buildings they operate have been completely spared. Was senior management doing something different in the spared buildings? Probably not, but often times it can be the local management team, and just as often with this pandemic, it can just be a matter of luck. Small providers, especially those with hands-on senior management, seem to have fared reasonably well from conversations we have had. Were they in... Read More »
Q2 Senior Care M&A Falls To Seven-Year Low
Well, we can’t say we aren’t surprised. COVID-19 and the economic ramifications stemming from social distancing and quarantine measures took a toll on seniors housing and care M&A, leaving the sector with just 59 publicly announced transactions in the second quarter. Back in early April, we said the second quarter’s deal total would be low and wondered if we’d even get to 50 transactions. Even though we did surpass that level, a closer look at the deals reveals an even bleaker market. The decline in activity is made even more stark after an unprecedented level of deal-making in 2019, with 450 total transactions (not including scores more that were... Read More »Schedule a demo
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