2014

Yearly Archives

  • Sales of Skilled Nursing Facilities by Nonprofit Organizations

    There has been a high volume of sales of skilled nursing facilities by nonprofit and government entities. What is driving these sales? What is causing the rush to the exits? Will this trend continue? In this blog, we will focus on non-government nonprofit entities only because the reasons for their sale of nursing homes differ […]

  • Traits of Healthcare Transactions Likely to Close

    I am often asked “what are the properties of healthcare transactions that are likely to close.”   It is a good question because often corporate mergers & acquisitions professionals simply get the marching order “Close the Deal.”  Knowing these characteristics and planning accordingly is important.  They apply across healthcare sectors, whether it is the sale of […]

  • Skilled Nursing Facilities and Nursing Homes for Sale

    The selling and buying of skilled nursing facilities is a hyperactive-market.  By all indications, it is a seller’s market.  There are more buyers than sellers.  The buyers are either REITs, national chains, regional companies or fledging start-ups.  Regarding the start-ups, it seems that everybody wants to be in the nursing home, skilled nursing home or […]

  • Book Review: Health Care Mergers and Acquisitions Answer Book 2014

    Book Review:  Health Care Mergers and Acquisitions Answer Book 2014 by Mark Davis, MUP, MBA, President, Healthcare Transactions Group, Inc. Health Care Mergers and Acquisitions Answer Book 2014, Edited by Andrew L. Bab, Kevin A. Rinker, Debevoise & Plimpton LLP, New York: Practising Law Institute, 2014. 1,154 pages, $255.00 (print) As a healthcare mergers and […]

  • Healthcare Mergers and Acquisitions Jargon, Part 2

    • “Bandwidth” – buyer has ability to review and evaluate multiple deals • Indemnity – What seller has to provide to stand behind statements represented and warranted in a sale contract • MAC Provision – part of purchase contract that deals with material adverse events before closing • “CHOW” – In healthcare industry, there is […]

  • Healthcare Mergers and Acquisitions Jargon, Part 1

    • Middle-Market – Transactions generally under $1 billion and involve non-publicly-traded companies. • One-Off Deal – Purchase of a single facility or entity, not a multiple entity deal • Portfolio Deal – Multiple facility or service sale • “Deal Has Hair” – a complexities and complications of selling company • ‘’Tuck-in’’ Deal – small niche […]

  • Cap Rates Used In Skilled Nursing Facility Valuations

    The baseline metric for the valuation of a skilled nursing facility is the amount of Net Operating Income generated by operations, or more specifically, EBITDAR, consisting of Earnings before Interest, Taxes, Depreciation, Amortization and Rent, divided by rates of return specific to the nursing home industry (known as the “Capitalization Rates” or “Cap Rates”).  Cap […]