7 Common Challenges Home-Based Care Owners Face When Selling Their Agency
- Mar 23
- 5 min read
Insights from Mertz Taggart’s Capital + Strategy panel on closing deals in home health, home care, and hospice M&A
By Bruce Vanderlaan, Managing Director, Mertz Taggart
Executive Summary Selling a home-based care agency involves more than finding a buyer and agreeing on price. In this panel discussion, experts shared practical lessons from real transactions, including why preparation, trust, clean financials, and experienced advisors can make the difference between a smooth closing and a difficult one. For agency owners thinking about an eventual exit, the message was clear: the deals that go well usually involve sellers who prepare early, stay engaged, and address common issues before they become deal problems. The panel identified seven common challenges agency owners face when selling:
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Selling a home-based care agency is not just a financial event. It is also an operational and emotional process that can surface issues many owners do not fully anticipate.
That was one of the clearest takeaways from Mertz Taggart’s April 10, 2025 Capital + Strategy panel, “Closing the Deal: Overcoming Common Challenges in Home-Based Care M&A.” The discussion featured Bruce Vanderlaan of Mertz Taggart, Cameron Cordts of PurposeCare, and Mike Trigilio of HouseWorks, who brought deep, firsthand experience from transactions across the home-based care spectrum.
For agency owners wondering how to sell a home-based care agency, or how to prepare for a smoother exit, the conversation offered a practical reminder: the sellers who tend to have the best outcomes are the ones who prepare early, stay engaged, and work with experienced advisors throughout the process.
Selling your Home-Based Care Agency is a Full-Time Job
The M&A process demands far more time and attention than most agency owners expect. Running your business while managing a sale requires serious bandwidth.
Bruce Vanderlaan opened the discussion by stressing the intensity of the process: selling an agency is not something you do on nights and weekends. It is another full-time job on top of running your business.
Cameron Cordts added that PurposeCare structures due diligence around weekly milestones, giving sellers a clear sense of what to expect and when, which helps keep the process moving without becoming overwhelming.
What Role Does Emotion Play in Home Care M&A Transactions?
Sellers consistently underestimate the emotional weight of the decision. Whether you’re just starting to ask “How do I sell my home health agency?” or you’re deep in discussions, the personal side matters.
The decision to sell is rarely a single moment. It’s a slow accumulation. For some owners, it’s triggered by mounting strain—regulatory fatigue, reimbursement uncertainty, staffing challenges, burnout. For others, it’s a deliberate choice: they’ve hit a financial target, the business is structured to transact, and they’re ready.
But either way, the emotional weight is real.
“It’s not uncommon to see tears at the closing table. These businesses are personal legacies.” — Bruce Vanderlaan, Mertz Taggart
Mike Trigilio, who has led and sold multiple businesses, agreed. Even institutional sellers get emotionally invested. Letting go is never as easy as it looks on a spreadsheet.
Why Is Trust a Must for Healthcare M&A Success?
One of the biggest hidden challenges is a seller’s hesitation to share information, often driven by a lack of trust. Building credibility early in the process makes a measurable difference.
Many agency owners enter the process with very little familiarity of advisory firms, valuation concepts, or how M&A works. They typically didn’t start their business to sell it. They know home health. They know hospice. They don’t know the advisory landscape. That means trust has to be built, through education, through showing up, through discretion.
Bruce Vanderlaan emphasized that a major part of Mertz Taggart’s role is connecting sellers with vetted, reputable buyers. That credibility can make a meaningful difference in how a process unfolds.
To reinforce transparency, Cameron shared that PurposeCare introduces sellers to its local leadership team early. That helps provide peace of mind about the future of the business after closing.
Financial Records Affect the Valuation of your Home Care Business
Accurate, well-documented financials directly influence how buyers approach valuation and their confidence in the deal. Messy books are one of the most common deal risks.
Your financials tell a story. If that story is messy (personal expenses mixed in, inconsistent records) buyers notice. And it costs you.
Bruce recounted deals where large personal expenses were mixed into business records. If buyers cannot separate the owner’s lifestyle from the agency’s actual performance, it impacts perceived value.
The takeaway was clear: well-documented financials are not just helpful. They are foundational to a credible offer.
What Is the Working Capital Dispute in Home Health Agency Sales?
Working capital is a common sticking point in nearly every home-based care transaction. Both sides have legitimate concerns, and resolving them requires clear communication.
“Sellers feel like they’re giving up their hard-earned receivables. Buyers just want to avoid funding payroll on Day One.” — Cameron Cordts, PurposeCare
Bruce likened it to selling a car: the seller wants to hand it off with an empty tank, while the buyer wants it full. The advisor’s job is to agree on how full it needs to be.
Labor and Compliance Issues Can be Deal-Killers
Wage and hour violations, improper worker classification, or missing documentation can create last-minute complications that threaten a transaction.
Mike explained that he has never been through a deal where something did not come up. The key is to find it early and manage the risk.
The panelists were aligned on this point: these issues are common, but they become much more manageable when addressed before they threaten the transaction.
Why Does Your Advisory Team Matter When Selling a Home Health Agency?
The quality of your advisory team (attorney, accountant, and M&A advisor) has a direct impact on whether a deal closes smoothly or stalls.
Bruce warned that if your attorney does not specialize in transactions, or your accountant is not responsive, the entire deal can suffer.
Cameron and Mike agreed that smoother deals tend to happen when sellers are supported by advisors who understand healthcare and know how to manage the M&A process.
As Bruce summed it up: “The deals that succeed are the ones where the seller is prepared, the advisory team is aligned, and there’s mutual trust between both sides. That’s when everything starts to click.”
Key Takeaways for Agency Owners Considering a Sale
✓ Selling a home health or home care agency is a full-time commitment on top of running your business. Start preparing early.
✓ The emotional weight of selling a personal legacy is real. Acknowledge it and plan for it.
✓ Trust between buyers and sellers is the foundation of a smooth transaction. Work with advisors who build that credibility.
✓ Clean, well-documented financials directly affect the valuation of your home care business.
✓ Working capital disputes are common but manageable with the right guidance.
✓ Labor and compliance issues should be identified and addressed early—before they become deal-killers.
✓ Your advisory team matters. Choose professionals who specialize in healthcare M&A.
Ready to Explore Your Options?
If you’re asking yourself “How do I sell my home health agency?” or want to better understand the valuation of your home care business, the best next step is a confidential conversation with an experienced M&A advisor.
At Mertz Taggart, we specialize in helping home-based care providers navigate the complexities of selling, from valuation to deal structure. We guide you every step of the way.
Schedule a confidential consultation today.
Contact Us | 770-888-1171 | www.mertztaggart.com
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