Seniors Housing Weekly Update - Senior Care M&A Market Bucks Trend
April 2, 2013
Senior Care M&A Market Bucks Trend
After a banner year in the senior housing and care M&A market, including a very active fourth quarter, we were expecting the first quarter of 2013 to be slow. While the global M&A market had the lowest number of announced deals since the first quarter of 2003, the senior care market was on par with the first quarter of 2012, at least in terms of number of deals. There were about 40 transactions in each quarter, but dollar volume dropped by 35% in this year’s first quarter to $1.6 billion. The missing link, of course, is the billion-dollar deal, which while absent so far this year, is expected to make an appearance later in the year. And no, we don’t have any inside information, just some inside speculation. But we continue to see prices bid up for high-quality properties, like the one in New Hampshire we mentioned last week, as well as a few north of $250,000 per unit that are coming down the pike, and over $100,000 per bed for some SNFs. We were surprised, but heartened, by the transaction volume so far this year in senior care, so 2013 should be quite active.