Mark Davis

Author Archives

  • Market Conditions for Skilled Nursing Facility Mergers & Acquisitions, Buyer’s, Seller’s or in Market Equilibrium, May 2019

    Supply and demand dynamics determine the prices of the goods and services in a market economy. Prices allocate resources. In the United States, we have fifty different economies for the sale and purchase of skilled nursing facilities because each state has it own patchwork of regulations and reimbursement methodologies, as well as intrinsic economic, social […]

  • How Have Seniors Housing and Care Segments Performed Since the Recent Market Cycle Peak?

    This research is abstracted from the National Investment Center for Senior Housing and Healthcare. Seniors housing is a multifaceted property type in commercial real estate, in part, because it is comprised of several different housing and care products designed to meet the diverse needs and desires of the older consumer. Product segments range from independent […]

  • Skilled Nursing Facilities, 2017: Creative Destruction for some, Going from Good to Great for others

    What is going on in the skilled nursing facility industry?  How is that affecting the market for the purchase and sale of skilled nursing facilities?  Genesis, this week, indicated they may be on the verge of bankruptcy; they issued this dire warning regarding industry conditions:  “The negative impact of continued reductions in skilled patient admissions, […]

  • What is the Sale Price of Skilled Nursing Facility Bed Rights?

    What is the value of skilled nursing facility (SNF) “bed rights,” or sometimes called “CON beds” in an arms-length purchase and sale?  What are the issues and concerns?   Can they be sold?  Who owns them?  Are they a durable or perishable asset?  While Healthcare Transactions Group has conducted the sale of skilled nursing facilities, […]

  • A Word on M&A Intermediary Services and Fees

    The fundamental axiom regarding intermediary fees is that the fee and the amount of fee is in consideration for a constellation of services for originating, marketing, facilitating, negotiating and closing a deal, which go beyond merely introducing the parties or bringing the buyer and seller together.   Simply introducing parties to a transaction constitutes a finders’ fee […]

  • Sale Prices for Skilled Nursing Facilities Have Peaked

    Making economic predictions is a risky business.  Calling an inflection point is downright chutzpah.   So let me go ahead and predict anyway:  Sale prices for skilled nursing facilities have peaked.  I expect that sale prices for skilled nursing facilities will persist at their current high level for a while and slowly drift downward.  However, I […]

  • Sale of Skilled Nursing Facilities and Free Enterprise

    How real markets function always fascinates me.  Whether the behavior of real markets diverge from or substantiate economic theory is the pressing question.  In this case, I want to apply economic theory to better understand the active sale of standalone and independently-owned skilled nursing facilities, which is resulting in the extinction of the standalone and […]

  • Notes about 25th NIC National Conference

    I attended the 25 NIC National Conference – Investing in Seniors Housing and Care – at the National Harbor, Maryland, along with nearly 2,500 other individuals.   It was a great conference.   Below are my observations: The word “stabilize” is the biggest thematic takeaway for me.   What do I mean by that?   Prices have peaked and […]

  • Before Buying an Assisted Living or Skilled Nursing Facility, Please Define the Market Area

    Before buying an assisted living for skilled nursing facility, acquirers need to define the center’s existing and potential geographic market area boundaries. When evaluating the purchase of a skilled nursing facility or assisted living community, it vital to examine the underlying market and population demand and need. Too often, purchasers of nursing homes and assisted […]