If you’re an agency owner, you may be getting overwhelmed with emails and phone calls from brokers, M&A advisors (and increasingly, buyers themselves) with catchy subject lines, or lofty promises tied to an unnamed buyer (or buyers), which can at times be hard to ignore.   If you are considering an exit or sale, how do you decide who deserves your response?  Let’s start with this fact:  Finding a quality buyer for your agency is the (relatively) easy part. Maximizing value, getting a transaction through diligence, successfully executing a purchase agreement, and closing on the transaction with few or no surprises takes skill, foresight, healthy respect from the buyer universe, and relentless advocacy on your behalf. Deciding to take your agency to market is often the biggest decision of an owner's career. Running a competitive process  to maximize value is almost always the best decision (Do What the Pros Do)  but choosing the best firm to represent you is equally important. Some of the key factors to consider are: 1. Respect/Credibility from the Buyer Universe:  The firm representing you and your business must have earned respect from the buyer universe. The credibility of the firm representing you will ultimately correlate with the buyer's confidence in marketing materials, adjustments, and negotiations. Buyers respond positively to established firms that prioritize advocating for their clients throughout the entire process while adding value to the transaction. Working towards the best deal for a client could extend or draw out a deal, but this advocacy creates a firm tone and respect from buyers.  2. Customized Confidential Approach Every M&A transaction is unique, and a good advisor will tailor their approach to your specific needs and goals. Confidentiality is paramount to a successful transaction. An advisor should prioritize confidentiality to protect the business during the period in which a transaction will take place. Oftentimes, online listings or blasts about a business going to market will give competitors and other agencies in the local market clues that your business is being sold, which can negatively impact your operations, staffing, and flow of referrals. Business owners will have different wishes and goals with an exit so while running a competitive process will always extract the most value, it can look different based on your business, objectives, and timeframe.  3. Track Record Assess the M&A advisor's track record in successfully completing transactions in the healthcare sector, particularly within the home-based care industry. Look for evidence of their ability to facilitate deals, negotiate favorable terms, and achieve positive client outcomes. Client testimonials  and case studies can provide valuable insights into their past performance.  4. Candor Engaging with an advisor is a commitment.  Trust  and integrity are critical in the M&A process. Most engagements include a one-year term plus a commitment to the firm for 18-24 months for those buyers the firm has “introduced” to the seller (also known as a tail period). Be sure the firm is not selling you on an inflated valuation just to lock you into this agreement. The right firm will create a competitive process among the best buyers in the industry and allow the market to decide value. If it sounds too good to be true… 5. Strong Communication and Negotiation Skills Effective communication and negotiation skills are vital in M&A transactions. The advisor should be a strong communicator who can articulate complex concepts clearly, facilitate discussions between parties, and advocate for your interests. They should also possess excellent negotiation skills to secure favorable terms and resolve any conflicts arising during the deal process. 6. Industry Expertise It is crucial that the M&A advisor has deep knowledge and understanding of the home-based care industry. They should be familiar with the market dynamics, regulations, trends, and key players within the sector. This expertise will help them identify potential opportunities, evaluate potential acquirers accurately, and navigate the industry's complexities.

Mertz Taggart announced today that it was recognized as the M&A Source Top Firm of the Year  for its outstanding performance in 2023. The company is one of three advisory firms in the United States to earn the award, which is based on total enterprise value transacted. M&A Source is the leading professional association of lower middle market M&A advisors nationwide. The association focuses on education, professional development, and networking opportunities for M&A intermediaries. “We are grateful once again to our friends and colleagues at M&A Source and honored by this award,” stated Cory Mertz, Managing Partner. “This recognition highlights the dedication and expertise of our talented team and their commitment to maximizing value for our clients.” Additionally, we extend our heartfelt thanks to our clients for entrusting us with their most valuable assets—their businesses. We appreciate the opportunity to serve them and support their goals. We cherish the relationships we've built over the years and look forward to continuing our partnerships within the industry. Mertz Taggart is an industry-leading healthcare services mergers and acquisitions firm based in Fort Myers, Florida. Our industry focus includes home-based care (home health, hospice, home care) and behavioral health (mental health services, addiction and eating disorder treatment, autism services). We represent owners of companies with between $500K to $20 million in EBITDA. Since 2006, our team has helped over 140 healthcare services business owners achieve their exit planning goals. If you are interested in learning how we can help you maximize your exit value, while minimizing surprises, contact us via email at info@mertztaggart.com  and arrange a confidential discussion!

After a historically slow first quarter that saw only 13 total deals in the home-based care space, M&A picked up significantly in the second quarter, albeit not in every aspect. Home health, home care and hospice saw 20 total deals in the second quarter, with the home health and hospice sectors leading the way at 10 and nine deals, respectively, while home care dealmaking mostly held steady at seven. (Note, many transactions include more than one service line.) Home-Based Care M&A Dealmaking generally picks up in the second half of the year due to rate setting, particularly in home health and hospice. Both proposed payment rules are now out for each respective sector. But this year, there could be additional factors contributing to back-half activity. For instance, inflation has continued to cool, and investors have renewed optimism around a rate cut or two from the Federal Reserve in the back half of 2024. That in turn would clear the runway for more deals, particularly for private equity. Private equity only accounted for six of the 20 deals in the second quarter, a smaller proportion than usual, notes Mertz Taggart managing partner Cory Mertz. “We saw fewer private equity-backed strategic transactions hit the wire relative to the whole,” says Mertz. “This is primarily tied to the tightened credit markets, and an increasing number of smaller, in-market transactions that don’t get reported.” The second quarter did see a few large, standout deals announced, including Addus ’ agreement to acquire Gentiva’s personal care business, Amedisys ’ agreement to divest approximately 100 locations to VitalCaring and Pennant’s deal with Hartford HealthCare . These transactions have been announced, but have not yet closed and therefore do not contribute to the totals. However, “We’re seeing optimism around a thaw in dealmaking,” Mertz commented. Home Health M&A Over the last few years, the reduction of quality home health assets going to market has contributed to a dealmaking downturn. There was a decent amount of home health activity in the second quarter, but the proposed payment rule — released at the end of June — will likely affect M&A the rest of the year. That said, determining how proposed and finalized payment reductions will affect the market is always difficult. The Centers for Medicare & Medicaid Services (CMS) proposed a 1.7% aggregate cut to 2025 payments, or about $280 million. “Industry stakeholders are justifiably up in arms over the proposed cut, which includes another ~4% permanent cut,” Mertz said. “From an M&A perspective, it’s another step towards certainty, which helps unlock transactions.” The Pennant Group (Nasdaq: PNTG) agreed to a partnership with Hartford HealthCare at Home (HHCAH), the home health and hospice segment of Hartford HealthCare, in the second quarter. That deal would take Pennant into Connecticut, bringing the company into the East Coast for the first time. Pennant had previously not had any home health locations east of Wisconsin. Amedisys Inc. (Nasdaq: AMED) also agreed to divest approximately 100 locations to VitalCaring . The exact location count and price tag have not been announced, but that deal would be a major one. It will only go through if UnitedHealth Group’s takeover of Amedisys goes through. But the divestment likely clears the path for the UnitedHealth Group-Amedisys deal, which was receiving antitrust scrutiny from regulators. Amedisys stock jumped from $92 to $97/share on the news. Finally, HCS-Girling — which recently acquired the personal care assets of Addus HomeCare Corp . (Nasdaq: ADUS) in New York — agreed to acquire Pinnacle Home Care , a large Medicare-certified home health provider with locations throughout Florida. Home Care M&A Home care was the slowest of the three categories in the second quarter, but Mertz also notes that some PE-backed strategics don’t always disclose personal care add-ons as they happen. “These same strategic buyers are still active, but many of them are sourcing their own transactions, which include some smaller deals which don’t ever get reported,” says Mertz. While Addus exits the New York market, it immediately set out to gain significant personal care market share elsewhere. If its $350 million deal for Gentiva’s personal care assets is finalized, it will become the largest home- and community-based services (HCBS) provider in Texas, a state it did not previously have a significant personal care presence. Addus also entered other states for the first time, including Missouri and North Carolina. Other notable deals from the home care world in the second quarter: ● HouseWork’s acquisition of AccordCare’s Connecticut personal care division ●  Family Resource’s acquisition of Specialty Service Solution in Washington state ●  Commonwise Home Care’s acquisition of Caregivers of Charleston Hospice M&A While the home health industry continues to face cuts, hospice providers have mostly had a stable payment environment. In March, CMS proposed a 2.6% increase to hospice per diems for 2025. The Pennant Group was also one of the more active buyers in hospice, acquiring South Davis Home Health & Hospice in Utah and Texas-based Nurses On Wheels . There were also more pure-play hospice deals in the second quarter than there were in the first quarter. One of the larger home-based care companies got involved too, as BrightSpring Health Services (Nasdaq: BTSG) agreed to acquire the nonprofit Haven Hospice , based in Florida.. Other notable hospice deals in the quarter: ● Northrim’s acquisition of Noble Hospice and Palliative Care , based in Phoenix ● Dover Health’s acquisitions of Centered Care Hospice and Palliative , based in Illinois ● Vitas Healthcare’s acquisition of the previously-announced Covenant Care , with locations in Florida and Alabama, for $85 million. "It's one quarter worth of data, but it's encouraging to see," Mertz said. "We talk with buyers and private equity regularly. The general opinion is that we saw the bottom in healthcare services M&A transactions in Q1. We'll be monitoring the inflation numbers and the Fed's comments over the next few months." If you are interested, you can also download the Q2 2024 Home-Based Care M&A Report via the following link:

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Home anchor GET STARTED CONTACT US Healthcare Mergers & Acquisitions Firm Mertz Taggart is an industry-leading mergers and acquisitions firm specializing exclusively in healthcare services. This focus yields invaluable insight into the challenges and opportunities operators face. The depth of our industry knowledge is garnered by our relationships with industry leaders, knowledge of buyers’ acquisition strategies, and our hands-on experience owning and operating a healthcare company. Our competitive advantages translate to maximizing value for our clients, as proven by over 140 successfully completed healthcare transactions since 2006. Industries We Serve​ ​ | Home Care | Home Health | Hospice | Infusion Therapy | | Addiction Treatment | IDD / Autism | Mental Health | | Ambulatory Surgery Center | Our Services ​ Mertz Taggart has experience owning and operating a healthcare company, which we believe gives us a unique perspective when representing our clients. We will help you define a practical business sale plan, with the ultimate goal of maximizing your exit value, by positioning your company correctly, creating professional materials, and most importantly, creating a confidential competitive process. Selling a healthcare business is a significant endeavor. It is often the biggest financial event in your life and its implications can impact retirement, future business ventures and your personal net worth. Most business owners do not have the time, experience or resources to professionally and confidentially market their business. Selling at the wrong time, to the wrong buyer or without the right information can substantially lower the value of your business. Our goal is to maximize your company’s value by weighing all factors impacting the sale, creating competition among the most qualified buyers, and driving the process from start to finish. The Deal That Is Right For You ​ We understand that selling a business is a significant financial event, with implications that can echo throughout your life. Your sale is the doorway to retirement or to future business endeavors and, ultimately, affects your personal net worth. Mertz Taggart coordinates the process from start to finish, with the goal of maximizing your company’s value. We will help present your company, weigh all factors impacting the sale, and create healthy competition among qualified buyers. By crafting a practical business sale strategy, Mertz Taggart will ensure you will maximize your exit value. ​ Most business owners do not have the time, experience or resources to professionally market their business. We do. Our mission is to make sure you sell to the right buyer at the right time, and knowing all the information that will help your business to achieve its maximum value. Our core values are the guiding principles by which our team works everyday. Service Integrity Accountability Growth Teamwork