The Home Health Advisor
“Dedicated to Delivering Education for Building Value, Exit Planning and Mergers and Acquisitions”
Building Agency Value
Over the past several months we have discussed several factors related to building value for your business and have received some great feedback from many of our readers. Since the feedback has been so positive we had a few of our team get together an write a brief report on the “Value Drivers” to focus on as you continue to grow your business. It is a quick read and something we suggest you print and keep on file.
In addition to the positive feedback regarding building agency value many have asked what the current market value of their agency is and what acquisition criteria buyers are looking for.
To help answer this question and provide access to the “Value Drivers” report we have set up a landing page you can visit and request the information.
Click Here to access the report and request the value of your agency (may have to visit page twice if requesting both options).
Exit Planning Strategies
Having an exit plan in place is critical for every business owner. At United, we work with business owners just like you every day. Some are prepared and have written plans in place but the majority have nothing in place and we have seen first hand how detrimental this can be to the ongoing success of a business following an unplanned exit.
The fact is, most business owners exit their business due to Health, Burn Out, Divorce/Partnership Disputes and Death. Retirement is seldom the primary reason for an exit. As you can see, the primary reasons for an exit are often sudden, life changing events.
When one of these events occur, and there is not a plan in place, the business typically suffers and the value can be greatly diminished in a short period of time. A written exit plan is essential for every business owner.
At United we care about our clients and can provide guidance to help you develop an exit plan. We even offer an ongoing service to help get you started.
To learn more about this valuable service click here and provide the requested information.
Latest Merger and Acquisition Trends
The Home Health M & A Market continues to be robust with several small to mid-sized transactions closing last Quarter. The trend is for continued consolidation in all areas of Home Health including skilled services, non-medical and hospice. If you have been considering an exit and your revenues are in excess of $2 million now would be a good time to consider moving forward or at least explore your options.
We work with dozens of well qualified buyers who will act quickly to transactions we represent. The tables below illustrate current demand by Agency type and geographic area:
Key
HIGH 5 or more buyer groups
MEDIUM 3 to 4 buyer groups
LOW 1 to 2 buyer groups
Home Health Agencies
State Demand State Demand State Demand State Demand State Demand
AL HIGH HI LOW MA HIGH NM MEDIUM SD LOW
AK LOW ID MEDIUM MI MEDIUM NY HIGH TN HIGH
AZ HIGH IL MEDIUM MN MEDIUM NC HIGH TX HIGH
AR MEDIUM IN MEDIUM MS HIGH ND LOW UT MEDIUM
CA HIGH IA MEDIUM MO MEDIUM OH MEDIUM VT MEDIUM
CO MEDIUM KS MEDIUM MT LOW OK HIGH VA HIGH
CT HIGH KY HIGH NE MEDIUM OR MEDIUM WA MEDIUM
DE HIGH LA MEDIUM NV MEDIUM PA HIGH WV HIGH
FL HIGH ME MEDIUM NH MEDIUM RI MEDIUM WI MEDIUM
GA HIGH MD HIGH NJ HIGH SC HIGH WY LOW
Home Care/Private Duty
State Demand State Demand State Demand State Demand State Demand
AL HIGH HI LOW MA MEDIUM NM MEDIUM SD LOW
AK LOW ID MEDIUM MI MEDIUM NY HIGH TN HIGH
AZ HIGH IL HIGH MN MEDIUM NC HIGH TX HIGH
AR MEDIUM IN MEDIUM MS HIGH ND LOW UT MEDIUM
CA HIGH IA MEDIUM MO MEDIUM OH HIGH VT MEDIUM
CO HIGH KS MEDIUM MT LOW OK HIGH VA HIGH
CT MEDIUM KY HIGH NE MEDIUM OR MEDIUM WA MEDIUM
DE MEDIUM LA MEDIUM NV HIGH PA HIGH WV MEDIUM
FL HIGH ME MEDIUM NH MEDIUM RI MEDIUM WI MEDIUM
GA HIGH MD HIGH NJ HIGH SC HIGH WY LOW
Hospice
State Demand State Demand State Demand State Demand State Demand
AL HIGH HI LOW MA HIGH NM MEDIUM SD LOW
AK LOW ID HIGH MI MEDIUM NY MEDIUM TN HIGH
AZ HIGH IL HIGH MN MEDIUM NC HIGH TX HIGH
AR MEDIUM IN MEDIUM MS HIGH ND LOW UT MEDIUM
CA HIGH IA MEDIUM MO MEDIUM OH MEDIUM VT MEDIUM
CO MEDIUM KS MEDIUM MT LOW OK MEDIUM VA HIGH
CT HIGH KY HIGH NE MEDIUM OR HIGH WA HIGH
DE HIGH LA MEDIUM NV MEDIUM PA HIGH WV HIGH
FL HIGH ME HIGH NH HIGH RI HIGH WI MEDIUM
GA HIGH MD HIGH NJ MEDIUM SC MEDIUM WY LOW
If you would like for us to contact you to discuss the latest trends and learn more about the sales process please click here and provide the requested information.
Here is a snap shot of all the current home health related businesses listed for sale by price and by region.
Price # For Sale Percentage
Undisclosed 104 32%
Under 1 Million 177 55%
1 Million to 2.5 Million 33 10%
2.5 Million to 5 Million 7 2%
5 Million to 7.5 Million 0 0%
7.5 Million to 10 Million 1 0%
10 Million to 15 Million 0 1%
15 million and up 0 0%
Total 322
100%
Region # for Sale Percentage
Undisclosed 29 9%
Mid-Atlantic 11 3%
Mid-South 22 7%
Mid-West 49 15%
Mountain 2 1%
New England 4 1%
Pacific 65 21%
Plains 9 3%
South East 56 17%
South West 75 23%
Total 322 100%
If you would like for us to contact you to discuss the latest trends and learn more about the sales process please click here and provide the requested information.