Levin Associates, publisher of The SeniorCare Investor, recently held a webinar on the skilled nursing M&A market with industry experts, including Lument’s Laca Wong-Hammond. Titled “Skilled Nursing: Is There A Market Disconnect?”, the webinar covered skilled nursing facility values, the current buyer’s mindset, and how the deal process has changed in recent months.
Among many topics discussed, panelists also opened up on the “sellers’ mindset” in the current economy. Wong-Hammond stated that the current environment is beneficial to a seller because of four main reasons:
- Number one being momentum and the relatively high pricing floor that has been established.
- Number two is equity; substantial capital is out there chasing deals and now is a great time to take advantage of that.
- The third reason was revenues, which are still being bolstered by government support, a nice convergence that is not going to last forever.
- The last reason to sell right now is debt. A permanent refinance at five percent is still very attractive. Although there has been a sharp increase in the past couple of months, debt is still relatively cheap by historical standards.
*Securities, investment banking, and M&A services are provided through OREC Securities, LLC d/b/a Lument Securities, Member FINRA/SIPC.