What a buyer asks for first
- Revenue by payer: private pay, Medicare, Medicaid and insurance
- Active client count, hours billed and caregiver headcount
- Licenses, certifications and survey or audit history
- Caregiver turnover, training records and background checks
- Referral sources and how much comes from a few of them
Payer Mix Drives the Price
Agencies that depend on Medicare or Medicaid are priced on reimbursement and compliance. Agencies that are mostly private pay are priced on client retention and rates. Buyers want to see the split by month, and how it has changed.
A sudden shift in payers before a sale invites questions, so explain any change.
Licenses and Ownership Change
Home care and home health agencies are regulated by the state, and some also participate in federal programs.
Regulators generally require notice or a new application when ownership changes, and licenses are not simply assigned to a buyer. Rules differ by agency type, so a healthcare attorney should review yours before you list.
Programs that pay you may require their own steps. A delay in enrollment can interrupt cash flow after closing.
Caregivers Are the Business
Buyers focus on staffing. How many caregivers do you have, how long do they stay and how do you recruit? An agency that turns over half its staff each year is harder to run and worth less than one with stable teams.
- Training and background check records for every caregiver
- A scheduler or director who runs operations without you
- Documented client care plans and supervision visits
Referral Relationships
If a handful of hospitals, discharge planners or families send most of your clients, a buyer sees concentration. A diversified referral base lowers risk and raises price.
Compliance Is Part of the Value
Clean survey results, current policies and tidy billing records matter. A buyer's counsel will read them. Fix gaps now rather than negotiating around them later.
Getting a Number
Most buyers use cash flow multiples, adjusted for payer mix and compliance risk. Start with what your business is worth to a buyer, then plan with the twelve month guide. A free valuation check gives you a range.