Home Health M&A

It has been a very tough road over the past several years for Home Health
business owners, especially the smaller businesses, with a steady diet of
reimbursement cuts and tightening compliance being handed to them.

The good news is that Home Health continues to be:

• The preferred method of healthcare support for the patient
• The most cost-effective delivery model
• The service model that yields the best medical outcomes

Home Health continues to help drive new business opportunities for those looking to expand in areas like Hospice, Home Care (non-skilled) and even Primary Care Practices. Projected values for Home Health point to a 4-8 multiple of adjusted EBITDA depending mostly on size, which is better than the buyer’s market we’ve seen in previous years.

Nonetheless, buyers will continue to scrutinize. Therefore, it is important that home health owners plan for the sale, tracking metrics that drive up value while maintaining growth and staying compliant. The trailing 12 months will always be a factor in value, but recent trends and a clear growth path will be the primary focus for most buyers. In other words, a troubled past can be overcome by a positive outlook. Agenda Health’s focus and experience in home healthcare acquisitions makes us uniquely qualified to help sellers make the necessary changes to show the trends buyers want to see.