Key Points
- Buyers don’t value a business by its profit number alone. Adjustments like owner pay, one time costs, and other normalizations affect what buyers are actually willing to pay.
- M&A activity has picked up in recent years, driven by broader market and demographic trends.
- Buyers look at more than the numbers, weighing things like compliance, consistent growth, and the strength of a team in place.
- Sellers should start preparing well ahead of a sale and understand how their business fits into a buyer’s broader strategy.
Alex Veach, Partner, Agenda Health
Thinking about the future of your post acute healthcare business, and what your agency’s EBITDA really means to a buyer? In this podcast, Alex Veach, Partner at Agenda Health, breaks down where M&A stands today across home health and hospice.
The number on your P&L is rarely the number a buyer uses to value your agency. Add backs, normalization adjustments, owner compensation, one time expenses, and how buyers treat each of them can meaningfully change your implied value. Alex explains how experienced advisors anticipate the way buyers will approach EBITDA and what that means for what your agency is actually worth.
He also covers the market’s rebound after 2023’s slowdown, fueled by an aging population set to reach 75 million Americans over 65 by 2030, what buyers prioritize beyond the numbers (a real culture of compliance, consistent growth, a strong management team), and the deal process itself, from why prep should start 24 months out to platform versus add on acquisitions.
Whether you’re planning a sale, a recap, or just thinking ahead, this podcast offers practical insight into what your home health or hospice agency is really worth and how to position it for a strong outcome.
Listen to the episode below:
