HealthTrust Survey: COVID-19 Causing M&A Transactions to Fall Apart

by Jeff Shaw

SARASOTA, Fla. — More than two-thirds of seniors housing companies are reporting having at least one acquisition deal fall through as a result of the chaos caused by the COVID-19 pandemic.

The information comes from a survey conducted by HealthTrust, a Sarasota-based valuations and advisory firm serving the seniors housing and healthcare industries. Although the number of respondents was not disclosed, the types of companies represented were largely brokers, lenders, operators and REITs.

Of those respondents, 69 percent reported experiencing at least one deal fall through. Transactions are undergoing major delays, often because the buyer and third parties can’t access the property for sale, respondents said.

Of those transactions that did close, most did so at the pre-COVID sale price with only 20 percent indicating a price reduction. In terms of activity, respondents predict lending activity will resume in about three months, acquisition activity will resume in three to five months and development will be sidelined for six to eight months.

To view the full survey results click here.

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