Seniors Housing Weekly Update -- Senior Care M&A Market Holds Steady

June 25, 2013

June 25, 2013. 60 Seconds with Steve Monroe. With the end-of-month deals still to come, it is looking like transaction volume this year will match last year's, but dollar volume is way behind so far.

Senior Care M&A Market Holds Steady

As we approach the end of the second quarter of 2013, I thought it would be helpful to compare the senior care M&A volume of the first half of last year with this year. In the first six months of 2012 there were 78 publicly announced deals worth a total of $3.4 billion. This compares with 69 announced deals so far this year worth about $1.8 billion. There is a good chance that with the usual end-of-month deal flurry we will match last year’s transaction total for the half-year results, or even top it. But it is extremely unlikely that the dollar value will double in the next week. We would need one very large deal to be announced for that to happen. There is a lot on the market right now that will come with price tags between $100 and $500 million, but even those will not take us to 2012’s full-year totals. The question now, however, is with the more than 75 basis point increase in the 10-year Treasury, will more sellers flood the market to get out while they can with attractive cap rates, or will they wait for better days? Stay tuned.



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