Why M&A Activity Naturally Slows Down During the Holidays

As the year moves into November and December, it’s common to see a noticeable slowdown in the home health, hospice, and behavioral health mergers and acquisitions (M&A) process. This trend is not unique to healthcare; across many industries, deal progress naturally eases during the holiday season as business leaders and vendors shift their attention from daily operations to family time, travel, and other year-end obligations. The result is a temporary dip in activity before momentum resumes in early Q1.

What Drives the Holiday Slowdown in M&A Activity

A major factor behind the seasonal slowdown is reduced availability among decision makers and vendors, such as attorneys and third-party diligence providers. Executives and key members of buyer teams frequently take time away during the holidays, which limits their capacity to review diligence materials, schedule meetings, or evaluate new opportunities. Deals already in motion continue to progress, but often at a slower pace—except for those looking to close before year end, a scenario that usually requires an “all hands on deck” approach from both sides. During this period, buyers tend to prioritize finalizing and closing transactions already in progress rather than beginning new ones. However, this doesn’t necessarily mean that buyers are unwilling to look at new opportunities altogether.

Another contributor is the timing of financial reporting. Trailing twelve-month financials provide a typical foundation for valuation, and year-end financials often offer a nice clean cutoff and picture for analysis.

As the new year begins and all parties return from holiday festivities, M&A activity quickly picks up in early to mid-January. Buyers begin to aggressively target new acquisition opportunities to build their new year pipelines, and momentum once again picks up on transactions that are already in-process.

Why the Holiday Season Can Be an Advantage for Sellers

Although overall market activity slows, the holiday season can be a productive time for owners considering a sale in the new year. The quieter pace allows time to review performance, organize financial statements, refine addbacks, and assess overall readiness for the M&A process. Taking care of this groundwork and preparing these materials in advance positions sellers for a smoother, more efficient launch as buyers re-engage with full force in early Q1.

Conclusion

A decline in M&A activity during the holidays is both expected and temporary. Reduced availability and shifting priorities naturally slow the pace of new deal evaluation by buyers. Once the new year begins, however, buyers come back into the marketplace with vigor and often hearty appetites as they scout for new opportunities. For home health, home care, hospice, or behavioral health owners considering a sale, the holiday months offer an ideal opportunity to prepare information and position their agency for a successful go-to-market process when activity picks up again in January.

An M&A Guide You Can Trust

Stoneridge Partners is a national healthcare mergers and acquisitions advisory and strategic consulting firm that manages complex transactions for home care, home health, hospice, and behavioral health companies.

We’ve been in business for over 25 years and have assisted owners just like you sell their healthcare-related businesses. We have accumulated a deep network of motivated buyers during our 25 years, and we have years of experience as operators, attorneys, and development professionals. We’ve been in your shoes, and we know the daily challenges you face.

If the thought of a potential sale is of interest to you, let us help you optimize your prospects for a successful transaction and the highest valuation.

So how do you start? Please visit our website at www.stoneridgepartners.com or contact us at 800-218-3944 for a confidential conversation.