Opportunity in upheaval: Can your bank show you the way?
In the early days of the pandemic, when COVID-19 was sweeping through senior-care facilities, many people worried about how to get their loved ones out of there.
Fast-forward to today, and, after months of isolation, our mindset has shifted. Families and potential residents want to know there’s a place where residents will be looked after, where meals are always available, where someone is on-hand to respond in any emergency — and where there’s the occasional bar cart or hallway bowling to add a little fun to the day.
This demand is creating opportunities for facility owners and operators who have demonstrated their ability to manage this pandemic by taking care of residents, employees…and balance sheets. At CIBC, we’re working with clients who have the expertise to meet this rising demand by ensuring they have the financial support necessary to realize their ambitions.
“With the upheaval in the market, many operators do not have the capital, knowledge or fortitude necessary to weather this storm,” said Bluma Broner, Managing Director and Group Head in CIBC’s US Healthcare Banking Group. “As such, they are choosing to exit the industry, and this creates opportunities for many of our quality operators.”
This is where a deep relationship with your bank becomes so important. Not every owner or operator is capable of a turnaround. Not every bank has the expertise to understand the complexities of these transactions and provide the necessary financing that works for the client and the bank.
“Because of the relationships we have with our clients, we can have confidence in them and offer the flexibility they need to structure these deals,” said Ann O’Shaughnessy, Managing Director and Group Head in CIBC’s US Healthcare Banking Group. “This might mean more flexibility at the onset, with stricter covenants as the loan matures.”
At CIBC, our team has decades of experience providing first-mortgage loans, bridge loans and expansion financing. Additionally, our dedicated Treasury Management team can offer new ideas to help clients operate more profitably and efficiently, including cash flow and liquidity solutions with products unique to the senior-care sector.
Throughout the process, transparency on both sides is critical.
“Through the years, our team members have been through many cycles and have experienced so many changes in this industry,” Broner said. “Through it all, we remained a consistent partner to our clients, learning and adapting to the changing rules and environment alongside them. We pride ourselves on being a value-add partner to our clients they can seek out for advice and solutions.”
To learn more about CIBC’s banking solutions for skilled-nursing, assisted-living, memory-care and independent-living facility owners and operators, visit Healthcare Banking.
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