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...

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...

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...