Senior living and care M&A transactions up, deal size down, analysis finds

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Senior living and care M&A transactions up, deal size down, analysis finds

Kathleen Steele Gaivin

(Credit: Nora Carol Photography / Getty Images)

September 22, 2025

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(Credit: Nora Carol Photography / Getty Images)

The number of publicly announced mergers and acquisitions involving senior living communities and skilled nursing facilities for the first six months of this year already has topped last year’s total, but the numbers can be misleading, according to a mid-year analysis by LevinPro LTC.

2024 saw a total of 717 deals. By the end of the first half of 2025, the sector had realized 733 transactions for this year.

But whereas the number of transactions has increased year-over-year, the size of those deals has decreased due to high interest rates and other economic factors, according to the report.

“The lack of large deals can actually help explain the record number of transactions being announced in 2024 and 2025, as a large portfolio deal that would have once included 10, 20 or more properties in a single deal (and entered once in the M&A database) is now being divided into two, three, five or even 10 separate deals (and entered 10 times) in the database,” LevinPro said.

Many of the transactions are the result of breaking up portfolios, according to the report. Unless interest rates “fall meaningfully,” single-asset acquisitions will remain popular, although full portfolios are becoming slightly more attractive in the latter part of the year, the report noted.

The Federal Reserve lowered its benchmark federal funds rate last week for the first time since December.

Assisted living buyers have fewer options for investment than do skilled nursing purchasers, LevinPro said, adding, that struggling skilled nursing operations can be turned around more quickly by buyers.

“Scarcity of new development, with more capital being redirected to M&A as a result, could lead to further pricing increases in assisted living in 2025 and beyond,” according to the analysis.
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