Seniors Housing Weekly Update - Senior Care M&A Market Surges

September 4, 2012


September 4, 2012. 60 Seconds with Steve Monroe. August may have been the most active single month ever with two dozen acquisitions announced  across all sectors, with skilled nursing showing unusual activity.......

Senior Care M&A Market Surgess

Although summer is not officially over, it feels as if it is, but it is not like people have to get back to work. They have been working all summer, as August may have been one of the most active months ever in the seniors housing and care M&A market. We counted about two dozen transactions that closed during the month, plus the big Sunrise Health Care REIT announced deal. And what was perhaps most surprising was the volume of skilled nursing sales, which was about half the total. But this wasn’t about your plain vanilla $25,000 per bed sale, or even your market average at $50,000 per bed. Although these did occur, what was really surprising was the number of sales above $70,000 per bed, and one topping $150,000 per bed. Investors are not throwing their money away, as these facilities make real money and will continue to do so. Reimbursement risk?  Sure, it’s always there, but the risk of not providing high-quality, high-acuity care is even greater in this changing environment.  


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