Despite a decline in overall senior housing M&A activity from 2022 to 2023, nonprofit M&A is pacing for a record year. Many of the same market conditions that cooled overall M&A activity — such as increasing interest rates, tightened lending requirements and operational uncertainty — appear to be causing a surge in nonprofit affiliations, acquisitions and dispositions. Essentially, the lull in for-profit activity seems to be creating significant opportunity for nonprofit providers to expand, affiliate or obtain much-needed capital injections from transactions with other nonprofits.
While the decision to acquire or sell a facility does not happen overnight, current market conditions may prompt some boards to start considering potential transactions. Similarly, boards that have been evaluating an opportunity may be prompted to act. To help facilitate these discussions, McGuireWoods created a list based on experience representing both for-profit and nonprofit clients in senior housing transactions.