Record-Setting M&A Month
Over the last seven years, August has averaged just 25 acquisitions. We are already 50% above that, and still counting. As the dog days of August come to an end, is there anyone still working away before Labor Day? I have to say, the healthcare M&A market has been quite active this summer. In the seniors housing and care market, we are closing in on a record month of activity. As of yesterday, we have tracked 37 acquisitions in August, equal to the 37-deal record set in 2015 for the month. With a few days left to go, I am confident that we will shatter that record. That means that the private market continues to have a lot more confidence in the industry than the public markets. With... Read More »
Rolling Four Quarters Multiples
It has certainly been a busy year in the M&A market, with transaction volume on pace to top last year’s, according to The Senior Care Acquisition Report. Despite all the headwinds and headline issues, buyers are still very active, and in many cases paying top dollar for the assets they want. The independent living market remains the strongest, with the average price per unit rising to $241,300 for the 12 months ended June 30, 2018, or 5% higher than in calendar year 2017. The average cap rate was 7.2%. The assisted living market, where all the excess development has been, dropped by 5% to $209,100 per unit for the 12 months ended June 30, compared with last year. The average cap rate... Read More »
Second Quarter M&A Soars Above 100 Deals
Boosted by an especially strong April, senior care M&A in the second quarter skyrocketed above 100 transactions for just the second time ever, according to DealSearchOnline. The industry seemed to be in a deal slump over the past year and a half, never surpassing 81 deals in a quarter and falling way off the pace set in 2015 when we recorded 99 deals in Q3:15 and 108 deals in Q4:15, the all-time record. However, this April set the tone for the quarter with 47 deals announced. Activity petered out a bit as the quarter wore on (35 deals in May and just 22 in June), but that could be the effects of the summer lull. Either that, or everyone was deal-ed out by Memorial Day. In the end, we... Read More »
Buyers Paid Up For Larger Seniors Housing Communities
According to the 23rd Edition of The Senior Care Acquisition Report, the average price paid per unit rose for all size groupings of seniors housing communities sold in 2017, which includes independent living and assisted living properties. Once again, the larger seniors housing communities commanded the higher prices (averaging $260,100 per unit), as these institutional properties can take advantage of scale to increase cash flow, and thus value. The smallest properties accounted for the smallest average price per unit, at $167,300, and are typically made up of smaller, “B” properties. However, this grouping also includes boutique memory care communities that, while small, charge more for... Read More »
Skilled Nursing Prices Slide Up With Size
There was a perfect correlation between size of skilled nursing facility sold and the average price per bed in 2017. In general, the smaller the nursing facility, the lower the price, and the larger the facility the higher the price. In 2016, the correlation existed except average prices declined for those facilities over 180 beds in size, according to the 23rd Edition of The Senior Care Acquisition Report. In today’s market those nursing facilities with fewer than 80 beds usually command the lowest average price. In 2017, that average price was just $53,750 per bed, down 13.5% from 2016. There was a significant percentage jump in average price for those facilities with between 80... Read More »Schedule a demo
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