Senior Care M&A Market in a “Post-Covid” World

Senior Care M&A Market in a “Post-Covid” World

Editor’s Note: This article focused on the senior care M&A market was featured in our sibling publication, The SeniorCare Investor It is safe to say the senior care M&A market in 2020 is quite different from that of 2019, in terms of the number of acquisitions closed, the values for senior care properties and perhaps most importantly, the types of properties actually put up for sale. Value-add and distressed communities have so far dominated the market since the onset of COVID-19, as owners of newer, stabilized communities are largely sitting on the sidelines to wait for a seller’s market again. Who knows when that will happen?  Assisted living communities have been hit... Read More »
April Was Cruel for Long-Term Care Deals

April Was Cruel for Long-Term Care Deals

The Long-Term Care sector is typically the busiest for healthcare mergers and acquisitions. Month after month, the seniors housing and care market posts the largest share of transactions, often between 25% and 29%. But these are not typical times. Now we’re dealing with COVID-19 and seniors housing has been hit especially hard by deaths, visitor restrictions, and more. Deal flow in this sector ground to a halt in mid-April, according to our Deal Search Online database. In January 2020, 33 transactions were announced, followed by 30 in February and 35 in March. Through April 28, just 16 deals have closed, the last one on April 15. For context, 39 deals were reported in April 2019.... Read More »
April Was Cruel for Long-Term Care Deals

Welltower Unloads Seniors Housing Portfolio

Welltower Inc. (NYSE: WELL) announced the largest deal so far in the month of February, by price, at least. It’s been a slow month for healthcare mergers and acquisitions, so the selling price of $740 million is leading the pack. The portfolio consists of assisted living communities located in California, Nevada and Washington. They were primarily assisted living communities that were 97% occupied, on average. The buyer wasn’t disclosed. It wasn’t the only divestiture by Welltower this month. The company also sold three skilled nursing facilities for $67 million. The SNFs have a combined total of 429 operational beds, for an average of $156,177 per bed. The average age of... Read More »
HCR ManorCare Offloads Some Assets

HCR ManorCare Offloads Some Assets

HCR ManorCare, the second largest skilled nursing operator in the United States, has sold Heartland Rehabilitation and MileStone Staffing Services to Grant Avenue Capital, a healthcare-focused private equity firm in New York. Terms of the deal were not disclosed. HCR went through a Chapter 11 bankruptcy restructuring in 2018 and was purchased for a total of $3.3 billion by a joint venture between Welltower (NYSE: WELL) and ProMedica, a not-for-profit health system. All the organizations are based in Toledo, Ohio. Welltower owns 80% of the HCR real estate and ProMedica owns 20%. ProMedica owns 100% of HCR’s operating company, for which it paid $470 million in cash and used a $1.15... Read More »
Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Hot Healthcare Sectors for Investment, Growth & Consolidation in 2020

Every year, starting in November, the crystal balls come out and the prognostications begin. What will the new year bring? Who or what will make out better and who or what will not? We talked with Gary Herschman, a member of Epstein Becker Green’s Healthcare and Life Sciences practice, about the healthcare sectors he and his firm are watching in 2020. Here are their predictions for 2020. Health Care M&A: What do you see as the biggest themes in the healthcare industry this year? There are a lot of moving parts, from the discovery of new drugs to the shifting attention to post-acute care. Gary Herschman: We see three key “drivers” of health industry transformation that are already... Read More »
Feeling Distressed? You’re Not Alone

Feeling Distressed? You’re Not Alone

For the past two years, the volume of healthcare deals has soared to new heights. Much of the growth has been powered by financial buyers, private equity firms in particular, piling into the healthcare services sectors. In 2018, a new record for annual deal volume was hit, now standing at 1,917. The services sectors accounted for 65% (1,242 deals), slightly higher than the typical 60% to 62%. Last year’s total deal tally now stands at 1,824 transactions, the second highest total ever recorded, and 70% of that comes from healthcare services deals. Why, then, have Chapter 11 bankruptcy filings among the services sectors spiked along with that activity? Since the second quarter of 2017, the... Read More »