Seniors Housing & Care M&A Activity Sets Record in Q3
NORWALK, Conn. – The seniors housing and care merger and acquisition market, which includes skilled nursing, assisted living, memory care, independent living and CCRCs, continues to strengthen after the record-setting year in 2014. In the third quarter of 2015, there were 90 publicly announced acquisitions in the seniors housing and care market, compared with 85 transactions in the year-ago quarter and 65 transactions in the second quarter of 2015. For third quarter activity, the 90 deals represents a record and implies we may be in for another strong second half of the year, much like in 2014. For the first nine months of the year, transaction volume is up 6.6% over the first nine months of 2014, to 226 announced acquisitions.
The dollar value of those transactions in 2015 has been much lower than in 2014. The total dollar value of the M&A transactions in this year’s third quarter was just $4.175 billion, compared with $9.686 billion in the year-ago third quarter. The dollar value in the second and third quarters of 2015 were almost identical at approximately $4.1 billion, but outpaced the first quarter’s dollar value of just $1.796 billion. For year-to-date totals, the dollar value in 2015 is $10.1 billion, which is less than half the $20.5 billion total for the first nine months of 2014. “Through three quarters of 2015, there has been just one billion-dollar transaction announced (the sale of Trilogy Health Services), and that one will not close until next year. While the market continues to be extremely active, the average size of each transaction is much smaller than in the past,” commented Steve Monroe, Editor of The SeniorCare Investor. “Prices are still relatively high for single-property purchases and small portfolios, but there is a dearth of large portfolios on the market,” Mr. Monroe continued.
All quarterly results are published in The Health Care M&A Report for all 13 sectors of health care, which is part of the Health Care M&A Information Source. For more information, or to order the report, call 800-248-1668. Irving Levin Associates, Inc. was established in 1948 and has headquarters in Norwalk, Connecticut. The company publishes research reports and newsletters, and maintains databases on the health care and senior housing acquisition markets.