Current Market Conditions
We were planning to discuss the trend toward payer diversification, but COVID 19 changed all that. First we’d like to acknowledge that in-home care providers of all types are on the front lines of this crisis: You are heroes and we at Healthcare Advisory Partners thank you for your service!
The pandemic has caused all providers to reconsider their priorities and ensuring the safety of patients, clients, and employees has become paramount. Although sellers and buyers still want to get deals done, there’s no denying that the crisis has cooled the market as providers prioritize operations over transactions.
…but “cooled” is not the same as “killed.” The fundamentals driving consolidation haven’t changed and, even if COVID 19 never entirely goes away, the crisis mentality will lift and deals will flow again. Our experience is that, while some operators are sidelining themselves, others are cautiously moving forward as their strategic objectives are unchanged by the current circumstances. Many economists predict that the coronavirus recession will be steep but short, with a recovery rebound expected after the “curve is flattened” and social distancing requirements are relaxed, but that remains to be seen.
We’re sheltering in place and preparing several new listings that will be available soon.
Feel free to contact us any time: We’re always happy to discuss market conditions, valuations, and the process we undertake to effect a successful transactions.