Long-term care mergers and acquisitions see 13.6% year-over-year increase, driven by assisted living sector.

In the first quarter of the year, publicly announced mergers and acquisitions involving senior living communities and skilled nursing facilities amounted to 176 transactions. Assisted living transactions represented a significant portion of these deals. While the number of announced transactions in the first quarter was lower than those in the previous quarter, it showed a notable year-over-year increase of 13.6% compared to the same quarter of the previous year.

The total sum spent on these first-quarter transactions in 2025 reached $5.79 billion, showcasing a substantial increase of 74.9% from the transactions in the same quarter of the previous year, which amounted to $3.31 billion. This also marked a substantial uptick from the $1.98 billion spent in the fourth quarter of the previous year, amounting to a 192.4% increase based on disclosed prices, according to data released by LevinPro LTC.

The drop in the number of transitions from the fourth quarter of 2024 to the first quarter was explained by a slow January, which saw only 47 deals. However, activity picked up in February with 60 transactions and increased even further to 69 deals in March, indicating an overall increase in mergers and acquisitions within the industry for the quarter.

Ben Swett, a senior care analyst and associate editor at Irving Levin Associates, commented on the changing landscape, noting that activity is being driven by improvements in capital markets and the operating environment for seniors housing and care properties. Highlighting this acceleration, Swett mentioned that the second quarter of 2025 has started with record M&A dealmaking activity.

Assisted living transactions were the prominent player, accounting for 41.5% of the deals in the first quarter, followed closely by skilled nursing facilities at 37.5%. Independent living transactions contributed 16% to the total, whereas continuing care retirement/life plan communities and affordable senior housing communities both stood at 2% each. Active adult communities had the lowest share at 1% of the total deals.

Swett further mentioned that while portfolio deals did not see a comeback in the M&A market during the first quarter, buyers, lenders, and brokers indicate that various portfolios are being marketed for sale, suggesting more opportunities for transactions and closings in the second quarter. This dynamic landscape of mergers and acquisitions in senior living communities and skilled nursing facilities seems to be defined by an underlying momentum that could spur more activity in the coming quarters.