Industry Report: Healthcare Q2 2025 [Bridgepoint Investment Banking]

Key Report Highlights

• Strong M&A Momentum in 2025: Senior living M&A activity is gaining speed, driven by improved fundamentals—higher margins, rising occupancy, and steady revenue. There’s a shift toward larger, strategic acquisitions, especially in independent and assisted living, and continuing care communities.

• Rising Demand Meets Limited Supply: A 12-quarter occupancy growth streak and an aging population (80+ cohort to grow 36% over 10 years) are fueling demand. However, supply shortages, especially in affordable senior housing, are pushing investors to focus on acquisition and renovation of existing assets.

• Capital Constraints Shaping Strategy: High construction costs and cautious lending are limiting new developments. Middle market players are leaning into repositioning older properties (many 25+ years old) rather than building new ones.

• Focus on the “Forgotten Middle”: Operators are targeting seniors between subsidized and luxury options through innovative models like co-housing and public-private partnerships, offering opportunity for middle market developers and operators.

• Favorable Environment Despite Headwinds: Regulatory changes and workforce challenges persist, but lower interest rates and more active lenders are improving liquidity, enabling creative financing options for acquisitions and expansions.

Bridgepoint Investment Banking is a boutique investment bank focused on providing capital raising and M&A advisory services to middle-market companies across North America. Founded in 2012, the firm specializes in sectors including industrials, transportation, healthcare, business services, consumer, and technology.

With over 360 years of combined experience and more than 460 completed transactions totaling over $380 billion, Bridgepoint’s senior team brings deep expertise to every engagement. Headquartered in Omaha with offices in Chicago, Denver, New York, and Lincoln, the firm conducts securities transactions through M&A Securities Group, Inc., member FINRA and SIPC.

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