The Financial Crisis Hits the Senior Living Industry
New York – February 18, 2009
The senior living sector has suffered significantly from the material deterioration in the housing market, the stock market, and the debt market. Many relatively new senior living facilities are experiencing financial stress, and many others are likely moving in the same direction without fully understanding their potential vulnerability.
The latest white paper in Cain Brothers’ Strategies in Capital Finance series, which is titled “The Financial Crisis Hits the Senior Living Industry: Operational and Debt Restructuring Considerations for Trustees and Executives,” discusses the crisis with the aim of helping board members and executives of nonprofit senior living organizations understand that the fundamental drivers of their facilities’ financial success have changed dramatically for the worse and to recognize what new fiduciary and legal responsibilities they have when they suspect they may be heading into financial trouble. The paper highlights the impact of recent market disruptions on senior living facilities, offers warning signs of potential problems, and provides guidance for solving the challenges that senior living facilities face.
Bill Pomeranz, Managing Director of Cain Brothers, said, “We recommend that trustees and executives pay attention to the implications that the global financial crisis has on their organizations. Early and forceful action by the board and management can often prevent the kinds of deterioration that would ultimately result in a bankruptcy process. Recognizing when the organization is first entering the zone of insolvency and getting the right kind of help to make necessary changes can best assure that the organization will successfully regain financial strength.”
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Please visit the Research page on our website to access and download this report or email strategies59@cainbrothers.com to request a printed copy.
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Cain Brothers is an investment banking firm that focuses exclusively on the health care industry. Our clients include providers, payors, medical device and equipment companies, information technology companies, outsourcing companies, and financial sponsors. The firm has one of the largest teams of experienced bankers and traders on Wall Street dedicated to the health care industry. Operating out of offices in New York, Chicago, Houston, San Francisco, Atlanta, Indianapolis, Los Angeles, Sarasota, and St. Louis, Cain Brothers creates custom-tailored, market-based solutions for the many strategic, financial, and operating challenges facing its clients. Cain Brothers’ venture capital affiliates, Health Enterprise Partners and CB Health Ventures, invest capital in fast-growing health care service and information technology companies.
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Contacts:
SAN FRANCISCO
Bill Pomeranz, Managing Director
bpomeranz@cainbrothers.com 415-962-2954
LOS ANGELES
Kathy Kirchhoff, Senior Vice President
kkirchhoff@cainbrothers.com 562-889-9119
CHICAGO
Amy Hayman, Managing Director
ahayman@cainbrothers.com 312-604-0578
ST. LOUIS
Joe Mulligan, Managing Director
jmulligan@cainbrothers.com 314-800-0441
NEW YORK
Matt Goldreich, Managing Director
mgoldreich@cainbrothers.com 212-981-6946
Scott James, Managing Director
sjames@cainbrothers.com 212-981-6943
