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Home Health Industry
Thinking about selling your home health agency?
Don’t go it alone — now’s the time to reach out to an experienced advisor at Stoneridge Partners. We’ve been doing this for over twenty years and can provide you with all the information you need to sell your home health agency with confidence.
Stoneridge Partners is a national healthcare mergers and acquisitions advisory and strategic consulting firm that manages complex transactions for home health agencies that are considering a sale. Our team of experienced healthcare advisors provides complete, confidential representation throughout the course of a transaction. We are there with you every step of the way, from determining what your home health agency is worth and who the right buyers are all the way to the eventual and celebrated day of close.
How do I sell my home health agency?
These are the things you need to know to sell your home health agency:
Get in touch with us today and we’ll answer your questions!
There is NO cost. The call is confidential. There is NO obligation.
We know how to sell your home health agency because we have been doing it for over 20 years!
Home Health Industry Overview
The Medicare-certified home health industry provides skilled nursing and therapy services to homebound patients, funded by Medicare. It is a highly regulated sector, governed by CMS guidelines, PDGM reimbursement models, and strict accreditation requirements. Demand is driven by an aging population, chronic disease management, and hospital readmission reduction initiatives. The industry is experiencing growth and consolidation, with increased interest from private equity firms and strategic buyers. Success depends on strong compliance, quality metrics, and referral networks.
Is now a good time to sell a home health agency?
The number of Americans aged 65 and older is expected to nearly double by 2050. These demographic trends and increased home-based care preferences are driving unprecedented demand for home health services.
With that in mind, strategic and financial buyers are actively seeking tuck-in and add-on opportunities to grow and expand their existing home health businesses. Other financial buyers are looking for platform opportunities to enter the home health space for their first or possibly second or third time, making it a great time to sell a home health agency.
What is a home health agency worth?
The valuation of a home health agency is a nuanced topic with many factors to consider, but the best place to start is by understanding the most commonly used equation in the valuation of home health agencies.
The formula is:
Value = (Adjusted EBITDA) x (The Valuation Multiple)
It’s a deceptively simple formula. The Adjusted EBITDA is the foundation of a strong valuation, and many factors are at play in determining the valuation multiple.
To better understand the intricacies of valuation, read our blog (Insert Link), download an Adjusted EBITDA worksheet (Insert Link), or contact us today for a free confidential consultation (Insert Link).
Who is buying home health agencies?
The home health sector attracts a diverse range of buyers, each with unique goals and strategies for acquiring home health agencies. These include strategic buyers looking to expand their current operations and private equity groups seeking platform opportunities to enter the home health space.
Understanding the different types of buyers is crucial for sellers looking to find the best fit for their business. By identifying how each type of buyer aligns with your goals, sellers can position their home health agency effectively, ensuring a smoother transaction process and maximizing value.
What is the process for selling a home health agency?
At Stoneridge Partners, we guide home health agency owners through a streamlined and confidential process to achieve optimal outcomes and a successful sale.
For a comprehensive look at each step, visit our Our Process page.
How long does it take to sell a home health agency?
The timeline to sell a Medicare-certified home health agency varies based on many factors, but on average, the process typically takes 6-12 months. Key stages include:
Stage 1: 1-2 Months
Initial Consultation and Planning and Documentation
Stage 4: 3-4 Months
Due Diligence and Legal Process
Stage 2: 1-2 Months
Targeted Marketing and Confidentiality Agreement/NDA
Stage 5: 1-2 Months
Regulatory and Close
Stage 3: 1-2 Months
Buyer Engagement and Letters of Intent (LOI)
The variation in the timeline is based on factors such as:
Why should I use Stoneridge Partners to sell my home health agency?
At Stoneridge Partners, we are committed to guiding home health agency owners through every step of the process, delivering exceptional results, including where others have failed.
TESTIMONIALS
I was introduced to Stoneridge Partners a few years back, in that time period we touched base off and on about the industry and at no time was I ever pressured to sell when I was not ready to part with my baby. I had some challenges a few years after we met and was ready to give up; Stoneridge Partners advised me to hold on because the hospice market was not right at the time. I am so thankful that I listened. On one occasion I backed out of a deal that was to close, Stoneridge Partners was so professional and respected my need to be 100% sure of my decision. They were more than my brokers, they were also my “shrinks” through the ups and down of the whole process. Thank you so much for your professionalism and just being there through my difficult days. I sincerely appreciate the team at Stoneridge Partners more than you can imagine.
About a year after I started Sovereign Home Health of Connecticut I reached out to a couple business brokers to lay the foundation of a relationship in case the day came when I would be ready to sell my business. Stoneridge Partners was gracious to spend time with me when we were very small and it was clear that an exit was a long time off in the future. The market intelligence that was shared along the way was critical and invaluable as I built the business. When the time came and I made the decision that I wanted to exit the business, they quickly and effectively made several introductions and within a short period of time we had a couple offers on the table. Stoneridge Partners held my hand at every step along the way and coached me well throughout the entire process.
Engaging Stoneridge Partners to represent me in selling my private duty home care business was one of the best decisions I ever made. A previous attempt with another M&A firm had been unsuccessful. I realized after starting to work with Stoneridge Partners that he was able to source highly qualified strategic buyers that the other firm did not. We had an LOI two months after signing with Stoneridge and concluded the sale to a perfect buyer three months later. The team at Stoneridge Partners were there every step of the way, from preparing the Executive Profile, fielding potential buyers, helping me through due diligence, suggesting legal representation and more. They became valued advisors and friends, always accessible when I needed help. It was a pleasure working with them.
We want to thank your team for the professional manner in which Stoneridge Partners handled the negotiations and subsequent sale. Since this was a once in a lifetime event, we wanted to make sure we did not make a major error. Their experience and guidance throughout the process was invaluable and gave us that reassurance. Their reasonable approach to dealing with problems had a calming effect esp. as the situation became a little hectic as closing approached. I also appreciated their willingness to advocate my position with the buyer when I felt strongly about an issue. I learned that completing a transaction of this scope is time consuming and complicated, and having Stoneridge Partners to guide us was the only way we could have completed the sale in such a short time frame.
Thank you all for assisting us through the successful sale of our agency. Throughout the entire process Stoneridge earned our confidence and respect. We especially appreciate your regard for your interest in staff retention and compatible values in a buyer. I give Stoneridge a heart-felt endorsement.
Ready to Get Started? Need More Information? Contact Stoneridge Partners Today!
Take the first step toward selling your home health agency.
Schedule your confidential consultation today and let us help you on your way to a successful sale!
The interest level from Buyers looking for a Medicare-certified home health agency varies based on factors, including size, geography, and financial performance.
Interest level and valuation
Current Trends in Home Health
The home health industry is evolving to meet the needs of an aging population and adapt to new healthcare priorities.
Key trends driving this transformation include: