How Can an M&A Advisory Firm Help Home Care and Hospice Owners Before They’re Ready to Sell?
- May 7
- 4 min read
By Michael W. Lloyd | Originally published January 20, 2023 | Updated May 7, 2026
At a Glance You do not need to be actively considering a sale to benefit from a relationship with an M&A advisory firm. For home care, home health, and hospice agency owners, an experienced advisor can provide valuation guidance, exit planning support, marketplace intelligence, and industry knowledge well before you are ready to go to market. Understanding these areas early can help you make better operational decisions today and position your agency for a stronger outcome whenever you do decide to sell. |
For many agency owners, selling their home care or hospice agency will be the most important financial decision of their life. It’s not only a difficult decision because of its emotional ties, but also tough to know when to sell or to let go. Confidentiality is paramount. And the complexity and uncertainty surrounding the idea of selling often lead agency owners to ignore or postpone it entirely.
The good news is that an M&A advisor can add value well before you are ready to sell your agency, or even if you are not considering a sale at all.
Here are some of the benefits an agency owner can get from engaging with a specialized M&A advisory firm early.
Valuation Guidance and Exit Planning
One of the most practical things an M&A advisory firm can do is help you understand what your agency is worth today and what you can do to increase that value over time. There are three widely accepted valuation methodologies that professional firms typically employ: discounted cash flows (DCF), comparable company analysis, and precedent transactions.
To truly understand the value of a home care, home health, or hospice agency, that analysis requires specialized knowledge of these sectors.
When seeking valuation guidance, choose an advisory firm with experience in these verticals. An even better selection is a firm that has both valued agencies and participated in actual transactions in the marketplace.
Some of the questions a specialized M&A firm can help you answer:
Which valuation methodology is most appropriate for my agency?
How much is my agency worth today?
What operational changes should I make now that will ultimately increase value?
What are the high-risk elements that caution buyers the most?
Education on the M&A Process
Many agency owners have never been through a transaction before. Learning what a well-run, professionally managed M&A process looks like, and what it requires of every stakeholder, can remove a great deal of uncertainty.
Common questions an advisor can walk you through include:
How long will the process take from beginning to end?
How much additional work will be required from the owner and potentially from key employees brought into the circle of trust?
How can confidentiality be managed so that key stakeholders do not find out before you are ready?
What type of information does an M&A firm need to build the materials for an effective, competitive process?
M&A Marketplace Updates
M&A advisors live and breathe transactions. Their wealth of information can be invaluable to an agency owner seeking to understand market dynamics.
A firm that specializes in care-at-home can provide insight on questions like:
What makes an agency an attractive acquisition target?
Who are the most acquisitive buyers in today’s market?
Which geographies are attractive to which buyers?
What are the current market terms for negotiated areas of a purchase agreement?\
This kind of intelligence is hard to come by on your own. Even if a sale is years away, understanding the buyer landscape and deal terms can shape how you run and grow your agency in the meantime.
Industry Knowledge
An M&A advisory firm that specializes in home care, home health, and hospice has a deep body of knowledge on the industry and can provide insights on operating margins (including gross profit and adjusted EBITDA margins), innovative ideas being adopted across the sector, standard solutions to operational problems you may be facing, and introductions to other industry advisors who could assist you.
The above is a brief summary of some of the benefits an agency owner can get from engaging with a specialized and professional M&A advisory firm, regardless of their exit timeline. The earlier you start the conversation, the more prepared you will be when the time comes.
Key Takeaways • You do not need to be ready to sell to benefit from engaging an M&A advisory firm. • Valuation guidance can help you understand what your agency is worth and what drives that value. • Learning the M&A process early removes uncertainty and helps you plan. • Marketplace intelligence gives you insight into buyer activity, deal terms, and regional demand. • Choose an advisory firm with specialized experience in home care, home health, and hospice. |
Start the Conversation Early
Mertz Taggart has been advising healthcare services owners for over twenty years. Whether you are actively considering a sale or simply want to understand your options, we welcome a confidential conversation. Contact us to get started.
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