Mergers, Acquisitions And Valuations For Home Health Agencies
Numerous forces are forever influencing merger and acquisition activity in the healthcare sector. The home health agency industry is far from immune. At Fleetridge Pacific, we recognize this continuity of change, and we leverage our experience to expertly determine up-to-date home health valuations, primarily for those who have a home health agency for sale.
We constantly and comprehensively examine those influential forces that can impact a home health agency’s valuation — including but not limited to new regulations, technological advances and health initiatives. We not only recognize changing conditions quickly, but also understand how they affect the individual components of a home health agency business. The value that ideal suitors place on specific assets can significantly impact the overall valuation, and our mission is to help clients determine where the best opportunities lie.
The Home Health Agency M&A Landscape
Activity in the home health mergers and acquisitions space has been robust, and that is expected to continue. Myriad factors determine where the best home healthcare business opportunities are, however, and Fleetridge Pacific’s expertise in tracking the industry is what benefits clients.
Consider some of the developments in play that can impact valuations and/or the timing of putting up a home healthcare agency for sale:
- Nearly 22 percent of the population will be 65 or older by 2040, according to projections — a significant increase from 14.5 percent in 2014. Demand for home healthcare agencies could rise in conjunction.
- The Affordable Care Act faces revisions or could even be repealed under a new administration.
- The number of publicly announced transactions in the home health and hospice industries was up 50 percent in one recent quarter over the previous quarter.
- Private equity firms and nontraditional buyers are identifying home healthcare businesses as promising opportunities.
- Regulatory changes, such as the recently rolled out Pre-Claim Review Demonstration for Home Health Services, could create cash flow problems for some home healthcare businesses, leading to more consolidation.
Because we specialize in healthcare transactions, we perform deep dives into these developments to understand their impact. We thus provide clients with the type of insight that M&A companies and business brokers that don’t specialize in the industry simply cannot provide.
Intermediary Services
At Fleetridge Pacific, we welcome your engagement beyond valuation services and identifying prospective buyers, by also providing intermediary services. Home health M&A transactions often are complex and time-consuming, and you still have a business to run. As an intermediary, we will streamline and manage the process of negotiating and closing a sale or merger.
This process is critical and complex enough that many states require business brokers to be licensed. When Fleetridge Pacific provides intermediary services, clients are leveraging not only M&A expertise, but also the experience of an industry specialist.
Let Fleetridge Pacific’s Insight Benefit You
Whether you have decided to sell your home health agency, merge with another organization, or are just exploring the possibilities, Fleetridge Pacific’s advisers provide comprehensive home healthcare business valuation services to our clients.
Our team members have backgrounds not only in home health M&A and finance, but also clinical experience, and experience operating a multimillion-dollar healthcare business. Take advantage of our unique insight into the industry. Contact us today at (619) 523-0303 to explore the current market for home health mergers and acquisitions.