Specialized M&A advisory services for Skilled Nursing Facility owners seeking strategic growth opportunities, operational efficiency, or optimal exit strategies in today’s dynamic healthcare landscape.
SNF Market Overview
The Skilled Nursing Facility market continues to demonstrate remarkable resilience and growth in 2025, building on the robust momentum established in 2024. Current valuation metrics show a median capitalization rate of approximately 12%, with average facility pricing reaching $88,000 per bed across all transactions. When excluding distressed assets, premium facilities are commanding over $110,000 per bed, reflecting strong investor confidence in the sector’s fundamentals.
Occupancy rates have shown consistent improvement, reaching 84.5% in Q3 2024 – marking the 14th consecutive quarter of gains. This positive trajectory, coupled with the Centers for Medicare & Medicaid Services’ 4.2% increase in Medicare payments for FY 2025 (approximately $1.4 billion), has created a stable reimbursement environment that supports strategic investment and expansion.
SNF Practice Acquisition Trends
The SNF acquisition landscape has accelerated dramatically, with record-breaking activity that shows no signs of slowing:
- Transaction volume surged to over 700 publicly announced deals in 2024, representing a 26% increase year-over-year
- SNF-specific closed transactions reached 221 in 2024, jumping 36% from 2023 levels
- Owner-operators have emerged as dominant acquirers, responsible for 75% of all transactions in the second half of 2024
- The market is witnessing increased consolidation as larger operators leverage economies of scale, creating significant opportunities for medium-sized multi-location practices
- Technology integration and operational efficiencies have become key differentiators in successful acquisitions
For medium-sized multi-location SNF operators, the current market presents unique strategic opportunities. The growing disparity between large and small operators has created favorable conditions for disciplined acquisition strategies, particularly of distressed assets. Despite persistent workforce challenges and regulatory complexities, demographic tailwinds from an aging population continue to strengthen long-term growth prospects.
Looking ahead, we anticipate continued strong transaction activity throughout 2025, supported by a softening rate environment, improving operational metrics, and strategic consolidation across the sector. Forward-thinking operators are increasingly focused on technology adoption and integration to address workforce challenges while enhancing care quality.
M&A ADVISORY
A trusted partner in delivering high-value M&A transactions and exit planning for healthcare organizations & private practices
Detailed Financial Projections
Bespoke Acquisition Strategies
Buyer Targeting and Outreach
Confidential Information Memorandums
Teaser Documents
Data Room Management
Indications of Interest (IOIs)
Letters of Intent (LOIs)
Facilitation of Management Presentations
Deal Negotiation and Closing Support
Our M&A Playbook
Simplifying the M&A process to delivery value-driven results
Preparation
- Build a compelling narrative with financial models & investor presentations
- Identify and prioritize strategic and financial buyers tailored to your goals
01
Marketing
- Present teasers and distribute CIMs to targeted buyers under NDAs
- Gather and evaluate Indications of Interest (IOIs) to identify qualified prospects
02
Initial Engagement
- Facilitate initial buyer reviews and address questions about the opportunity
- Shortlist top buyers and begin preliminary deal negotiations
03
Due Diligence & LOI
- Conduct management presentations and finalize Letters of Intent (LOIs)
- Manage virtual data rooms (VDR) and coordinate due diligence efforts
04
Closing
- Negotiate final terms and oversee confirmatory due diligence
- Execute the purchase agreement and ensure a smooth transaction close
05
Disclaimer: The steps or stages are based on investor demand and general market factors.