The 90-Day Sale-Prep: Your Accelerated Roadmap for Selling Your Home Health Agency in 2026

January 2026 brings a rush of energy to the marketplace. Private equity firms have refreshed their capital deployment targets and strategic buyers are looking to expand their footprints immediately. For agency owners, this creates a unique window of opportunity.

If you have been thinking about selling a healthcare business, the first quarter is often an ideal time to act. Buyers are motivated, but they are also disciplined. They want clean financials, stable operations, and a clear growth path.

A 90-day timeline is aggressive, but entirely possible if you prioritize precision. This accelerated roadmap is designed to take you from “thinking about it” to “deal-ready” quickly. To navigate home health mergers and acquisitions without leaving money on the table, you need a strategy where speed meets precision.

The 90-Day Strategy: Speed Meets Precision

An accelerated sale-prep does not mean a rushed process. It means prioritizing the actions that actually move the needle on valuation and cutting out the noise. When you list a home care agency for sale, preparation is key to an expedited outcome that maximizes dollars and deal terms.

We have broken this down into three distinct phases: Financial Clarity, Operational Polish, and Market Strategy.

Days 1-30: Financial Clarity and Valuation

Valuation is directly correlated to the numbers. Buyers will scrutinize your P&L statements and related addbacks during due diligence, so it is imperative to identify and address any issues before they do. If your financials are messy, they may not support the agreed-upon valuation, and you lose leverage.

1. Recast Your Financials (Adjusted EBITDA)

Your trailing twelve-month (TTM) P&Ls only tell part of the story; you also need to calculate your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This involves identifying and “adding back” one-time, nonrecurring, and personal expenses run through the business, such as:

• Owner’s personal vehicle or travel expenses.
• One-time legal fees or consulting costs.
• Above-market salaries paid to family members.

Presenting a clear, defensible Adjusted EBITDA is the single most important step in determining and maximizing the value of a healthcare business.

2. Clean Up Accounts Receivable (AR)

A bloated AR report scares buyers. It suggests you have trouble collecting from payers. Spend these first 30 days aggressively collecting old debt and writing off what is uncollectible. A clean AR aging report shows that the business has strong cash flow management.

3. Speak To A Professional

Do not guess what your agency is worth based on what you heard through the grapevine. Each agency and deal is unique. Multiples change based on many factors including size, geography, payer mix, etc. Consulting an M&A advisor for a valuation discussion gives you a realistic range and expectation based on the current market.

Days 31-60: Operational Polish and Packaging

Once the numbers are solid, you need to ”package” your business. This phase is about laying out your business in a clear, organized way to present it to buyers.

1. Document Your Metrics, Systems, and Staffing

When listing a home health care agency for sale, organization is key. Buyers get nervous if they sense that an owner or management team is disorganized or unfamiliar with their numbers and operations. Focus clearly and systematically laying out your operations with supporting documentation during this period.

2. Ensure a Clean Compliance Report

A deal can crash and burn following an unfavorable surprise during clinical diligence. Proactively review your files, records, and practices to identify any issues.

If you find issues, fix them now. You should identify, correct, and disclose any issues rather than have a buyer discover them during clinical diligence.

3. Build the “Book” (Confidential Information Memorandum or Executive Summary)

You need a compelling document that provides a first look at your business to the buyers. A detailed but condensed Executive Summary systematically lays out your operations and highlights your strengths. A well-organized “book” provides a critical snapshot of your business to the buyer and often sets the stage for determining their overall interest in moving forward with a potential acquisition.

Days 61-90: Buyer Identification and Market Strategy

Now that your financials, operations, compliance, and Executive Summary are in order, it is time to look outward. This final phase is about finding the right partner.

1. Identify the Right Buyer Profile

Not all buyers are created equal. Home health mergers and acquisitions generally involve three types of buyers:

• Strategic Buyers: Medium to large regional or national home health organizations. They are often synergistic buyers who are experts in the home health industry.
• Financial or Private Equity: Investors looking for a “platform” to enter the home health space or for additional “tuck-in” opportunities to “add-on” to an existing investment. They are motivated buyers and typically have 5-7 year horizons.
• Individual Investors: Usually looking for smaller agencies to run themselves. The buyers typically require an SBA loan or other forms of financing.

Knowing the buyers is critical to successful negotiations and maximizing the chances for a successful close.

2. Create a Competitive Environment

The best way to push up valuation is to foster a competitive process with multiple parties interested in your agency during the sale process. This requires a targeted but expansive confidential search. A skilled and knowledgeable M&A advisor can discreetly present your business to a vetted list of buyers, creating a competitive process that ensures the highest and best deal terms from the most qualified buyer.

3. Prepare the Data Room

By day 90, you should have a digital “Data Room” ready to go. This is a secure online portal that “holds” your documents (Executive Summary, financials, and supporting documents). When an approved buyer signs a Non-Disclosure Agreement (NDA) or Confidentiality Agreement (CA), they can be granted access to these materials and begin the process of engagement and sharing information. Having an organized, comprehensive data room builds trust.

Why Q1 2026 is the Right Time

The healthcare landscape is ever-changing. Demand for home-based care continues to rise, but regulatory complexity also continues to increase. Many owners are choosing to exit for a mix of personal, financial, and industry-driven reasons.

By starting this process early in the year, you position yourself to get out in front of buyers at an optimal time and engage the process before the summer slowdown.

Common Pitfalls to Avoid

As you progress through this 90-day plan, watch out for these mistakes:

• Taking your eye off the ball: Do not get so distracted by the sale such that your business performance dips.
• Breaching confidentiality: Keep the circle of confidants small at this stage of the process.
• DIY deals: This is a complex process. Having a bench of knowledgeable professionals including Brokers, Attorneys, and Tax Advisors is key.

Your Exit Starts Today

Positioning a home health care agency for sale is likely the biggest financial transaction of your life. You have spent years building your legacy; spend these next 90 days ensuring you get paid what it is worth.

The market in 2026 is active, but it favors prepared sellers. By following this roadmap, you move from uncertainty to action, placing your agency in the ideal position for a successful exit with the best possible deal terms.

Ready to start your 90-day countdown?

Do not navigate this complex market alone. At Stoneridge Partners, we specialize in helping home health and hospice owners achieve exceptional outcomes.

Contact us today to schedule your confidential strategy meeting. Let’s make Q1 2026 the quarter you secure your future.