In just a few short weeks, the National Investment Center for Seniors Housing & Care Fall Conference will descend on the nation’s capital. And the excitement is already building.
In fact, there’s a good chance we might see a record crowd this year. You can bet many of the attending finance bros will be eager to help facilitate mergers, acquisitions and other portfolio expansions.
There’s even talk of possible blockbuster transactions at the industry’s largest deal-making event. Which, all things considered, seems a bit odd.
Although there are signs of market improvement in the senior living field, the sector is hardly out of the woods.
Many operators continue to wrestle with COVID-19’s lingering effects. And the challenges are hardly limited to filling units. They extend to finding and keeping staff in a labor market that’s more competitive than ever, navigating an increasingly complex regulatory landscape, and adapting to the evolving expectations of residents and their families.
Adding to the complexity is that the competition is arguably more intense than ever. New entrants are redefining both the definition and reality of senior living. This influx of fresh ideas and capital is forcing established operators to rethink their offerings and find new ways to remain relevant and viable.
The allure of quick gains from mergers and acquisitions might lead some to overlook the underlying issues that still plague the sector.
As we prepare for the hearty handshakes and pleasant chatter that will soon echo across the Marriott Marquis, let’s not lose our perspective. The senior living sector may be on the cusp of significant change, but that change needs to be managed with caution, foresight, and a firm grip on reality.
Otherwise, some of those awesome deals struck later this month might not look so grand in retrospect.
John O’Connor is editorial director for McKnight’s Senior Living and its sister media brands, McKnight’s Long-Term Care News, which focuses on skilled nursing, and McKnight’s Home Care. Read more of his columns here.
