June 2016 M&A Results Show Strength
Uncertainty is the hobgoblin of the merger and acquisition markets, and the month of June was a high point (or low point, depending on your perspective) for anxiety in global financial markets. Still, the healthcare deals kept rolling in. Our preliminary total for June 2016 stands at 115 transactions, exactly equal with the same month a year ago. Compared with May’s total of 141 deals, though, June’s total does look as if someone is applying the brakes. It takes 12 months to make a year, though, and one month’s results do not create a trend. The digital health sector turned in the strongest gain compared with June 2015, when only two deals were announced. This June, 22 deals were announced... Read More »REIT Buys Rehab Hospital
Carter Validus Mission Critical REIT II teamed up with Vibra Healthcare to acquire Vibra Rehabilitation Hospital of Rancho Mirage. Vibra Rehab is under construction to become a 40,688-square foot, 50-bed inpatient rehabilitation hospital. Vibra Healthcare currently operates more than 40 specialty acute care hospitals and outpatient physical therapy centers with more than 2,000 beds. Construction costs are budgeted at approximately $27.6 million to be funded by CVMC REIT II, and the purchase price is $9,466,287, bringing the transaction total to approximately $37.1 million. The facility is 100% leased to Vibra Rehabilitation Hospital of Rancho, LLC for a 16-year term beginning 30 days from... Read More »Rehabilitation Deals, 2006 to 2015
The M&A market in the rehabilitation sector picked up steam in 2015, with 30 announced transactions. The shift toward bundled payments, led by the Center for Medicare and Medicaid Services, had a strong effect on this fragmented market. Private equity firms were building platforms, while at least one REIT picked up a few facilities. Like physician medical groups, targets in this sector tend to be small, privately held operations and their acquisitions aren’t always publicly announced. For that reason, the data may underrepresent the actual interest in this field. Read More »Advent International Acquires ATI Physical Therapy
Private equity continues to invest in rehabilitation companies. The latest deal, the fifth of five announced in March 2016, is from Advent International, a Boston-based firm with more than $30 billion invested in 310 companies. For an undisclosed price, the firm took a majority interest in ATI Physical Therapy, a portfolio company of KRG Capital. ATI specializes in outpatient rehabilitation and adjacent healthcare services. It operates more than 500 clinics in 19 states, and served nearly 300,000 unique patients in 2015. Read More »Leap Day Boosts February Deal Volume
It’s Leap Year, which means February was a day longer in 2016. This year, that extra day marked the announcement of seven healthcare transactions, which raised the month’s total to a healthy 113 deals. The services sectors were more active than usual, and accounted for 65% of the total. Usually, the services side makes up about 55% to 60%. Dollar volume was healthy, too, at $27.7 billion. But given the records set in 2015, February’s dollar total ended up 35% below the same month a year ago. The deals may be getting smaller, but they’re still being made. Read More »Schedule a demo
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