Home-based care M&A activity held steady in Q1 2026, with 22 transactions closed during the quarter — continuing the momentum from last year's rebound . Seven additional deals were announced but not yet closed as of quarter-end, signaling a healthy pipeline heading into the second quarter. Hospice led all sub-sectors with 10 closed transactions, followed by home care at 9 and home health at 6. Cory Mertz , managing partner at Mertz Taggart, noted: "Q1 2026 was an encouraging start to the year. We're seeing more sponsors reach the point where they need to transact — some of these platforms have been held for five, six, seven years, and the pressure to return capital to LPs is real. The clock is ticking on a lot of these funds, and buyers are active. We expect deal volume to continue building through Q2 and into the back half of the year." Home-Based Care M&A Note: Total industry transactions do not necessarily equal the sum of the sub-industries, as many transactions include more than one sub-industry. The 22 closed transactions in Q1 2026 were driven by sponsor-backed activity across all three sub-sectors. Home care and hospice each contributed double-digit deal counts on a combined basis, while home health showed modest improvement from the multi-quarter lows seen through much of 2024 and early 2025. Cory Mertz added: "The announced deals this quarter tell the real story. Elara Caring, Enhabit, TEAM Services, Aveanna/Family First — these are meaningful transactions that reflect growing conviction from both buyers and sellers." Home Health M&A   Home health activity improved in Q1 2026, with 6 total transactions — including 1 new platform and 5 sponsor-backed add-ons — up from 3 in Q4 2025 and the best quarter for the sub-sector in over a year. The quarter's headline deal was the announced acquisition of Enhabit Home Health & Hospice  by Kinderhook Industries  for $1.1 billion, representing a 10.2x EBITDA multiple on $108 million of EBITDA and $1.06 billion in revenue. Enhabit had been publicly traded since spinning out of Encompass Health in 2022 and had spent much of its time as a standalone company navigating reimbursement headwinds and investor skepticism about Medicare home health. The Kinderhook deal delivers a 24% premium to Enhabit's share price at announcement and nearly 34% to the 60-day average — the kind of outcome that speaks for itself. Cory Mertz offered this perspective: "The Enhabit deal is a good reminder of why we don't lead with multiples. Shareholders received a 24% premium to market and nearly 34% to the 60-day average — real value by any measure. But if you just read '10.2x EBITDA' in a headline, it sounds unremarkable. The multiple is an output, not the goal. For Enhabit's board, the goal was maximizing value for shareholders and getting the company out from under the quarterly earnings spotlight — both of which this transaction accomplished." Also announced — but not yet closed — was Ares Management's  (alongside DaVita ) strategic investment in Elara Caring , the large national home health, hospice and personal care platform formed in 2018 from the three-way merger of Great Lakes Caring, National Home Health Care and Jordan Health Services. Blue Wolf Capital had held the asset for nearly eight years — an unusually long hold period by private equity standards — navigating a difficult regulatory environment, a $4.2 million DOJ settlement in 2024, and a home health reimbursement landscape that kept many large-platform exits on hold. DaVita disclosed an approximately $200 million minority investment alongside a majority investment from Ares, with Elara continuing to operate as an independent company. The strategic rationale centers on co-developing a kidney-specific in-home care model, leveraging DaVita's clinical expertise to reduce preventable hospitalizations and lower total cost of care for patients with kidney disease. Among closed deals, Choice Health at Home  added Cyfair Healthcare  in Texas and Alliant Home Health  in back-to-back transactions, extending its multi-state footprint. Residential Healthcare Group  acquired Covenant Home Health  to deepen its presence in eastern Pennsylvania, and Superior Health Holdings  closed on Pulse Home Health & Hospice . Also announced was Aveanna Healthcare's  agreement to acquire Family First Homecare  for $175.5 million. Family First is a pediatric home care provider focused on skilled private duty nursing, operating 27 locations across seven states including Florida and Texas. The deal expands Aveanna's specialized pediatric footprint and reinforces its strategy of building scale in medically complex, high-cost patient populations. Hospice M&A Hospice maintained its position as the most active sub-sector in Q1 2026, with 10 closed transactions — including 5 sponsor-backed strategic add-ons. This is consistent with the record activity seen in Q4 2025 and confirms hospice as the preferred target for both strategic and financial buyers in the current environment. Notable transactions include Uplift Hospice's  purchase of Autumn View Hospice  in Georgia, continuing the platform's active acquisition streak. On the not-for-profit side, Chapters Health System  announced another transaction in its acquisition of HouseCall Providers , a Portland, Oregon-based organization offering home health, hospice and palliative care services across the Pacific Northwest. Hospice of Southern Maine  announced the pending acquisition of Andwell Health Partners , and VNA of Texas  completed the acquisition of Faith Presbyterian Hospice . Heart to Heart Hospice  continued its add-on pace with the acquisition of a former Cura-HPC  location in Oklahoma City. Kara Health  launched a joint venture with Loma Linda University Health  to form Loma Linda University Hospice , expanding Kara's health system partnership model into the Inland Empire region of California. Cory Mertz noted: "Hospice M&A has been on a run, and we don't think it's over. The activity we saw in Q4 2025 and Q1 2026 is being driven by real demand from buyers and growing willingness from owners to engage. A few precedent platform transactions were received well in 2025, and that fuels more PE interest in the space — which drives demand for all hospice agencies, large and small. For hospice operators who are thinking about a sale in the next one to three years, the current environment rewards preparation — particularly around billing compliance and documentation." Home Care M&A Non-medical home care contributed 9 closed transactions in Q1 2026, including 5 sponsor-backed strategic add-ons and 1 new platform. While slightly below the elevated levels seen in Q1 and Q2 2025, activity remained healthy and the announced deal pipeline points to continued momentum. The quarter's most notable announced transaction was General Atlantic's  acquisition of TEAM Services Group , one of the largest Medicaid-focused home and community-based services providers in the country, from Alpine Investors , which had built the platform through more than a decade of aggressive add-on activity since forming the company in 2015. The deal, backed by $1.38 billion in financing, closed in early Q2 — but its announcement during the quarter is a meaningful signal of continued large-platform appetite in the home care space. Among closed deals, Care Advantage  acquired the Delaware locations of Neighborly Home Care , HouseWorks HomeCare  added A Caring Experience Nursing Services  in the Northeast, and PurposeCare  added Freedom Home Care  to its expanding portfolio. Choice Health at Home  continued its aggressive add-on pace, closing on Florida-based Senior Nannies Home Care Services  in addition to its home health transactions this quarter. Q1 also saw two home care franchise networks change hands: Main Post Partners  established a new platform with the acquisition of HomeWell Franchising , and Dovida , a global home care provider operating across six international markets, made its U.S. market entry with the acquisition of A Place At Home , a franchise network with approximately 55 locations across 27 states. Cory Mertz noted: "Home care is still very much in play. We have a number of sponsor-backed platforms that have been building for several years and are getting close to exit-ready, and buyers — including some we haven't seen active in a while — are showing renewed interest." If you are interested, you can also download the .PDF version of the Q1 2026 Home-Based Care M&A Report via the following link:

Mertz Taggart follows the publicly traded home-based care companies and reports on their earnings calls each quarter. As a group, public company performance and share price serve as a proxy for industry performance and investor sentiment, respectively. Historically seen as the “ultimate consolidators”, the publicly traded home-based care trading multiples have a downstream effect on lower middle market home-based care M&A. Addus Homecare (Nasdaq: ADUS) Highlights Addus reported revenue of $373.1 million for the quarter, up 26% from Q4 2024. Growth was led by the Personal Care segment, representing 77% of the business, which grew same-store revenue by 6.3% and overall revenue by 30% year-over-year compared to the prior year quarter. The segment benefited from stable hiring trends and favorable rate support in large markets including Texas and Illinois, the company’s two largest markets. The Hospice segment, making up 19% of quarterly revenue, experienced 16% year-over-year same-store growth as a result of operational improvements which saw increases in admissions, average daily census and revenue per patient day. The segment also benefited from a 3.1% increase in the 2026 Medicare hospice reimbursement rate which came into effect on October 1. The company’s Home Health segment, which represents 5% of the business, saw a 7% decline in same-store revenue year- over-year, but still remains a critical piece of Addus’ full continuum of care. 25% of the Hospice segment’s admissions in New Mexico and Tennessee are attributable to the company’s Home Health business. Addus ended full-year 2025 with revenue of $1.4 billion and adjusted EBITDA of $180 million, an increase of 23% and 28%, respectively, from 2024. Key Financial Figures M&A Activity CEO Dirk Ellison commented, “Our development team continues to focus on both clinical and non-clinical acquisition opportunities which would increase both density and geographic coverage. We will continue our disciplined approach to identify strategic personal care service transactions as well as to evaluate smaller clinical transactions. That said, while there is more optimism around home healthcare due to the final health rule for 2026 being more favorable than was originally proposed, questions remain about potential future rate increases and the uncertainty of the retrospective payment adjustments.” Management clarified that they will continue to source and evaluate acquisition opportunities similar to the ones closed so far this year, with a focus on markets where Addus can leverage its strong personal care network. Guidance Management expects a sequential gross margin decline of 120 basis points from normal seasonality, annual merit increases and the annual reset of payroll taxes. A 3.9% rate increase in Illinois that came into effect on Jan 1 is expected to add $17.5 million in annualized revenues in 2026. Aveanna Healthcare (Nasdaq: AVAH) Highlights Aveanna reported Q4 2025 revenue of $662.5 million, up 27% year-over-year, and Q4 2025 adjusted EBITDA of $85 million, representing a 54% increase over the prior year quarter. Management attributed this growth to an improved reimbursement rate and volume environment and the continued success of cost savings initiatives. The Private Duty Services segment, representing 82% of the business, grew 28% year-over-year driven by an 18% year-over-year increase in volume and a 10% increase in revenue per hour as a result of the company’s preferred payor strategy and other Medicaid rate enhancements. The Home Health & Hospice Segment, which represents 10% of the business, grew 27% year-over-year. The business line saw 10,400 admissions and 14,000 total episodes of care during the quarter, up 22% and 25% over the prior year quarter, respectively. Aveanna continues to expand its preferred payor strategy, ending 2025 with 30 preferred payor agreements, up from 22 at the end of 2024. Q4 2025 preferred payor volumes accounted for approximately 57% of total MCO volumes in its Private Duty Services business. Key Financial Figures M&A Activity Aveanna announced the acquisition of Family First Homecare, a multi-state provider of pediatric home care with 27 locations, for $175.5 million or approximately 7.5x post-synergy EBITDA. The transaction is expected to close in late Q2 2026 pending regulatory approvals. CEO Jeff Shaner noted the deal allows Aveanna to expand within Florida, where Family First generates approximately two-thirds of its revenue, enabling the company to service effectively every county in the state. Management signaled continued interest in M&A with plans to pursue tuck-in acquisitions for its Home Health & Hospice segment. Management also identified Ohio, West Virginia, Kentucky and Tennessee as target expansion states for the company’s Private Duty Services business. Guidance Aveanna guided to full-year 2026 revenue between $2.54 to $2.56 billion and adjusted EBITDA of $318 to $322 million, excluding any impact from the Family First acquisition, implying core EBITDA growth of approximately 7%. Management expects six to eight state rate enhancements in its Private Duty Services business in 2026, with increases expected to be between 1% to 5% rather than the larger structural resets of prior years. The Pennant Group, Inc. (Nasdaq: PNTG) Highlights P ennant Group reported Q4 2025 total revenue of $289 million, an increase of 53% over the prior year quarter, driven by growth in all three of its operating segments. Full-year consolidated revenue and adjusted EBITDA came in at $948 and $72 million, up 36% and 20% from 2024, respectively. The Hospice segment, representing 34% quarterly revenue, grew 53% year-over-year driven by a 47% increase in average daily census, reaching an all-time high of 5,060. Same-store ADC and admissions grew 8.4% and 6.6%, respectively. The Home Health segment, inclusive of Home Care revenue, grew 73% year-over-year and saw an 81% surge in quarterly admissions, driven by the company’s recent acquisition of divested assets from UnitedHealth Group and Amedisys. Same-store Medicare admissions and Medicare revenue per episode grew 8.2% and 3.7%, respectively. Throughout 2025, Pennant Group added more than 100 leaders to its CEO in Training program and elevated an additional 39 leaders to C-level status within their local operations, strengthening the company’s talent bench for M&A integration and organic expansion. Key Financial Figures M&A Activity Pennant Group continues to integrate the divested assets it purchased from the UnitedHealth Group and Amedisys transaction, which added significant density in the Southeastern market. Management expects to complete the integration by October 2026. The company closed two Senior Living acquisitions during the quarter, including a 55-bed Idaho-based assisted living community now known as Twin Rivers Senior Living and the real estate of Honey Creek Heights Senior Living, a 135-bed Wisconsin-based assisted living community that previously sold its operations to Pennant Group in January 2025. Commenting on M&A expectations going into 2026, President and COO John Gochnour said, “We are always disciplined in our approach, but we will be even more selective on the Home Health and Hospice front in the first half of 2026, as we focus on ensuring our recently acquired operations are on firm footing.” Guidance Management issued initial full-year 2026 guidance of $1.13 to $1.17 billion in revenue and $88.5 to $94.1 million in adjusted EBITDA. CFO Lynette Walbom characterized the guidance as conservative, as management expects noise from integration in the first three quarters of the year. Enhabit, Inc. (Nasdaq: EHAB) Highlights Enhabit reported quarterly revenue of $270 million, representing a 5% increase from the prior year quarter, and adjusted EBITDA of $28 million. The company’s Home Health segment, which makes up 76% of the business, grew 3% year-over-year driven by admissions growth of 7.3% or 8.1% when normalized for branches closed in 2025 and average daily census growth of 6.4% compared to the prior year. Medicare average daily census continues to stabilize as it fell 1.7% sequentially. The Hospice segment, representing the remaining 24% of the business, grew 10% year-over-year led by a 9.9% increase year-over-year in average daily census. Admissions increased 0.8% year-over-year or 3% when normalized for branches closed in 2025. Enhabit opened four de novo locations during the quarter, bringing the total to 10 de novo locations in 2025. The company continued to de-lever its balance sheet during the quarter with a reduction in bank debt by $15 million, yielding a leverage ratio of 3.7x. The company has reduced total bank debt by $125 million since Q4 2023, resulting in an annualized cash interest savings of $22 million. Key Financial Figures M&A Activity On February 23, 2026, Enhabit announced that it had entered into a definitive agreement to be acquired by Kinderhook Industries, a middle market private equity firm, for $13.80 per share or a total enterprise value of $1.1 billion, representing a premium of approximately 24.4% to the company’s closing share price as of February 20 or a 33.8% premium to Enhabit’s 60-day volume-weighted average share price for the period ending February 20. The transaction is expected to close during the second quarter of 2026, subject to regulatory approvals and other closing conditions. In a press release, President and CEO Barb Jacobsmeyer commented, “Under Kinderhook’s ownership, Enhabit will benefit from additional resources and expertise that will support long-term investments in our people, clinical excellence and innovation without the short-term pressures of the public markets.” Guidance As a result of its pending acquisition by Kinderhook Industries, management has suspended its practice of providing financial guidance. BrightSpring Health Services, Inc. (NASDAQ: BTSG) Highlights BrightSpring delivered total Q4 2025 revenue of $3.6 billion, up 29% from the prior year quarter. Full-year 2025 revenue came in at $12.9 billion, a 28% year-over-year increase, while the company achieved a full-year adjusted EBITDA of $618 million, a 34% increase from 2024. Pharmacy Solutions, which represents 89% of the business, grew revenue 32% year-over-year to $3.2 billion. Within the segment, Infusion and Specialty revenue grew 43% to $2.6 billion while the Home and Community Pharmacy service line’s revenue declined 1% to $593 million, reflecting the unwinding of a bankrupt customer and the exit of uneconomic accounts. Provider Services, representing 11% of the business, reported quarterly revenue of $394 million, up 13% year-over-year, with a segment adjusted EBITDA margin of 16.4%, a 50-basis point expansion driven by economies of scale and efficiency. The Home Health Hospice and Primary Care businesses, which represents 55% of the Provider Services segment, grew revenue 19% year-over-year driven primarily by a 15% increase in average daily census. Key Financial Figures M&A Activity BrightSpring closed its acquisition of 107 Amedisys and LHC branches in a two-part transaction on December 1 and December 31, 2025, at a purchase price of $239 million funded entirely from cash on hand. The assets generated full-year 2025 pro forma revenue of $345 million and are geographically complementary to BrightSpring’s existing Home Health and Hospice footprint. Management expects the acquired assets to contribute approximately $30 million in adjusted EBITDA in 2026. The pending divestiture of the company’s Community Living business received FTC approval and is expected to close by the end of Q1 2026. The transaction will generate approximately $715 million in net after-tax cash proceeds from $835 million in gross consideration, with proceeds earmarked primarily for debt repayment. CEO Jon Rousseau reiterated BrightSpring’s intention to continue pursuing thoughtful tuck-in acquisitions in 2026 commenting, “The hallmarks of the company now for 10 years has been volume and efficiency and then accretive M&A. That story has really never been more intact.” Guidance Management issued initial 2026 guidance of $14.45 to $15.0 billion in total revenue, inclusive of Pharmacy Solutions revenue of $12.6 to $13.1 billion and Provider Services revenue of $1.85 to $1.9 billion. Total adjusted EBITDA is expected to be between $760 and $790 million. Option Care Health, Inc. (NASDAQ: OPCH) Highlights Option Care reported full-year 2025 net revenue of $5.6 billion, up 13% over the prior year, driven by balanced growth across acute and chronic therapies. Acute revenue grew in the mid-teens while chronic therapies saw low double-digit growth. Stelara biosimilar adoption represented a full-year 2025 revenue headwind of 160 basis points, impacting Q4 2025 gross profit negatively by $20 million, consistent with management’s expectations. Full-year adjusted EBITDA came in at $471 million, representing a 6% increase over the prior year, with a margin of 8.3%. Throughout 2025, the company added five new site-of-care programs with regional health plans and two with non-traditional payors. Management noted increasing payor engagement around total cost of care and MLR management, with momentum expected to continue into 2026. Option Care served over 315,000 unique patients in 2025, an all-time high, and completed over 2.5 million infusion events. Over 25 centers now offer advanced practitioner capabilities, up from 24 in Q3 2025. Approximately 40% of claims are now processed without human intervention through AI and automation initiatives. The company is expanding AI use cases into call center agentic capabilities, workforce optimization and inventory management. Key Financial Figures M&A Activity While discussing the company’s M&A strategy, CFO Meenal Sethna commented, “We remain active on identifying complementary tuck-ins and adjacencies. We acquired Intramed Plus earlier in the year, and the business and financial performance beat our initial expectations. We will continue to exercise discipline as we evaluate potential acquisitions, ensuring they are both strategic and financially attractive.” Guidance Management reaffirmed full-year 2026 guidance initially provided in January of $5.8 to $6.0 billion in revenue, adjusted EBITDA of $480 to $505 million and operating cash flow of at least $340 million. Option Care’s revenue guidance incorporates a 400-basis point headwind from biosimilar adoptions such as Stelara. To download the .pdf version of this report, click below. Disclaimer The information contained in this document is provided for informational and marketing purposes only by Mertz Taggart and is not intended as investment, financial, legal, tax, or other professional advice. The content has been compiled using publicly available sources, including but not limited to SEC filings accessed via EDGAR, Seeking Alpha, and Yahoo Finance.  While we strive to ensure the accuracy and reliability of the information presented, Mertz Taggart does not warrant or guarantee the completeness, timeliness, or accuracy of the information, nor shall it be held liable for any errors or omissions.  This document does not constitute a solicitation, recommendation, or offer to buy or sell any securities or other financial instruments. Any views or opinions expressed are those of the author(s) and do not necessarily reflect the views of Mertz Taggart or its affiliates. Recipients should not rely solely on the information herein for making investment or strategic decisions. All readers are encouraged to conduct their own independent research and to consult with their professional advisors before making any financial or business decisions. 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By Cory Mertz, Managing Partner | Mertz Taggart Adapted from a conversation on the Home Care Strategy Lab podcast with Miriam Allred I’ve been doing healthcare M&A since 2006. In that time, I’ve worked with hundreds of home care, home health, and hospice companies. Big ones, small ones, great ones, struggling ones. And one of the things that still surprises people when we sit down together is this: you can have a really nice company that’s not very valuable in the marketplace. That’s not a criticism. It’s just reality. What makes a company great to run and what makes a company attractive to a buyer are two different things. A lot of owners do not realize that until they are much closer to a transition than they should be. That was one of the themes I recently discussed with Miriam Allred on the Home Care Strategy Lab  podcast. We covered valuation, market trends, transition risk, and the blind spots owners often miss until a sale feels real. And if there is one point worth emphasizing, it is this: some of the best transactions do not start when an owner decides to sell. They start years earlier. Every business will transition. Every owner is going to transition out of their business at some point. How that happens could be a lot of different ways. It could be a sale. It could be a family succession. It could be a merger. But it’s going to happen. What tends to drive those decisions is not always strategy. More often, it is life. Burnout. Health issues. A child who was excited about taking over the business five years ago but isn’t anymore. The market peaking and an owner thinking, “maybe now’s the time.” We see all of it. The owners who end up in the best position aren’t the ones who scramble when a life event hits. They’re the ones who’ve been paying attention to what their company is worth in the market long before they’re ready to do anything about it. The most common blind spot I’d say the most common blind spot is owners not understanding how the M&A market would actually look at their company. Not how they see it. How buyers see it. Buyers are evaluating how sustainable the cash flow is, how transferable the business will be after a sale, how it fits into the broader market, and how much risk they believe they are taking on. Take niche businesses as an example. Maybe you serve a very specific patient population and you have built something unique around that. That may be great for your operation. But from a buyer’s perspective, they need to know two things: is it sustainable, and when they eventually exit, is that uniqueness going to be marketable to the next buyer? The biggest acquirers in the market tend to do business in fairly similar ways. Similar margin profiles. Similar technology adoption. Similar structures. If your company is an outlier, even a high-quality outlier, it may not command the value you expect. The Diversification Myth The impact of diversification on company valuation can be uncertain. It may limit the pool of potential buyers. Similarly, when business owners hear about diversification, they often feel compelled to expand their offerings by adding more payers, service lines, and geographic locations. However, if your organization is already providing a range of services such as private duty, Medicaid, VA, and skilled work all under one roof, you may find that there are few buyers who excel in all these areas. Excessive diversification can complicate a company's evaluation process and make it more challenging to sell. You want diversity, but you want it in the right way. Multiples are the most misunderstood concept in M&A People love to talk about multiples. What’s the going rate? What are companies selling for? The problem is, the multiple isn’t an absolute number. It’s subjective. For any given deal, you can calculate a handful of different multiples, and they can vary quite a bit depending on what earnings figure you are using and what time period you are looking at. Here is a simple example. A $20 million company with an average EBITDA of $2 million over the last three years is a 10x multiple. But if the last four months show a $4 million run rate, now that same deal looks like a 5x. Same company. Different lens. That is one reason owners can get misled when they hear that another company sold at a certain number. Without understanding the details behind the deal, the number by itself does not tell you much. At its core, the multiple is about risk. The higher the multiple, the lower the perceived risk that cash flow will hold up after closing. The lower the multiple, the more risk the buyer is absorbing. That risk comes from everywhere: geography, reimbursement exposure, the strength of the management team, whether the company is growing or declining, whether the owner does everything themselves or has a team that can stand on its own, culture, technology, timing. Two companies that look similar on paper can command very different multiples once you drill into the specifics. That’s why comparables only tell you so much. The risk factor buyers fixate on most If there is one risk factor buyers consistently focus on, it is transition risk. How involved is the owner in the day-to-day? If they’re doing everything, the transition risk is high. What does the first layer of management look like? How likely are those key people to stick around after a sale? We recently took a hospice company to market. Great business. Strong management team. We went through six management discussions with buyers, the kind of multi-hour meetings where they really get to know the people, the culture, and how the company operates. Our client did a terrific job. Even so, two buyers dropped out. Why? They saw risk factors the other buyers did not. That is how subjective this process can be. What is a dealbreaker for one buyer may be a non-issue for another. It’s also why you want multiple buyers at the table. It is hard to gauge the market by talking to one buyer, or even a few. In home-based care alone, we track roughly 140 strategic acquirers, and they do not all see the same company the same way. The three things you can actually manage When we sit down with an owner, we break valuation into three manageable pieces: revenue, margin, and the multiple. Revenue  is straightforward — every agency has to grow if they want to command a higher value. We help owners put a plan together and connect them with the right people to get there. Margin  is where it gets more nuanced. If your margin is too thin, you may be leaving money on the table. But if it’s too high, that can also raise concerns. A 30% or 40% adjusted EBITDA margin may look great from the owner’s perspective, but to a buyer, it can signal risk. They may wonder whether the business is underinvesting, whether the margins are sustainable, or whether growth has been sacrificed in the process. Sometimes it makes more sense to reinvest part of that margin into growth. The multiple  is really about de-risking the business. Strengthening your management team. Diversifying your referral base the right way. Putting systems and processes in place. Reducing owner dependence. Making the company more transferable. Once you understand where you are across all three, you can start to see the gap between what your company is worth today and what you’d want to sell for. And you can start closing that gap. Start the conversation early When we look back at our best transactions, the smooth ones, the ones where sellers walked away feeling good about the outcome, there’s usually a pattern. We were talking with those owners three, five, sometimes ten years before they went to market. They’d come to us and ask, “what’s my company worth today?” We’d tell them. Then they’d say, “I wouldn’t sell for less than $10 million.” We then identify the gap and advise on how to close it. That thinking is what led us to formalize our Value Accelerator Program . In truth, we have been doing this kind of work for years. We just recently gave it more structure. The process is simple. We assess where the company stands today. We set a target, both a number and a timeline. Then we break the path forward into revenue, margin, and multiple. From there, we build an action plan and check in periodically, quarterly or annually depending on the situation, to measure progress and adjust course. And candidly, the owners who go through that process tend to be in a much better position when they are ready to exit. Where the market stands right now We’re not at the 2021 peak. That was a frenzy; the publicly traded companies were trading in the high 20s, money was cheap, and everybody was rushing to the exits. But we’re still in a better market than anything we saw from 2007 to 2020. Companies are generally trading for higher multiples today than they were before the pandemic. The publicly traded companies are still in the mid-teens, which sets the benchmark. The broader tailwinds are still there too. When I first got into this business, people were talking about the baby boomers who were about to turn 65. Now many of those same people are turning 80. That is when demand for home-based care really accelerates. So from a market standpoint, the fundamentals remain strong. What that means for owners is this: the market is solid, the long-term demand outlook is favorable, and the opportunity to build value ahead of a future transition is still very much there. But you have to be intentional about it. Want to know where your company stands? If you own a home care, home health, or hospice company and you’re curious about what the market would say about your business today, we’re happy to have that conversation.

A home care M&A case study with Becky Reel, founder of For Papa’s Sake Home Care At a Glance Sector: Home Care  |  Deal Type: Sell-Side M&A   The Situation: Becky Reel built For Papa’s Sake Home Care in honor of her grandfather and grew it by 300% over a decade, earning the #1 agency ranking in North America from Home Care Pulse. She had promised her parents she would build the agency to the point where its sale could fund their retirement. The Challenge: Selling wasn’t just a financial decision. Becky was balancing the demands of running the agency, raising two young children, and navigating the emotional weight of letting go of a business that carried her family’s name and legacy. She needed an advisor who understood both the business and the personal stakes. The Mertz Taggart Approach: Senior advisor Bruce Vanderlaan led a hands-on engagement. He educated Becky through every stage of the process, attended every meeting in person, and evaluated buyers not just on price but on their alignment with the agency’s mission and values. The Outcome: Becky found a buyer who shared her commitment to patient care and staff well-being. Her promise to her parents was fulfilled. The agency’s legacy continues under new ownership. When Becky Reel decided to sell the home care agency she’d built in honor of her grandfather, she needed more than a broker. She needed a partner who understood what was at stake, for her family, her employees, and the patients who depended on her team. Becky chose Mertz Taggart. Below, she shares the story of selling For Papa’s Sake Home Care, from the promise that started it all to the moment she found the right buyer to carry it forward. Honoring a Promise and a Legacy For Papa’s Sake Home Care was born from a promise and a mission close to my heart. Named in honor of my grandfather, who I called Papa, who endured a tragic experience in a nursing home, the agency represented our commitment to create a better option for seniors—one rooted in dignity, safety, and genuine care. My promise to my parents was equally important: to build and grow the agency to a point where its sale could fund their fulfilling retirement.  Over my 10 years, we grew by 300%, was ranked the number 1 agency in North America by Home Care Pulse (now Activated Insights), and received the Leader of Excellence award for seven consecutive years. Selling this agency was not just about a transaction; it was about finding someone who would continue this legacy of care.   Balancing Family, Legacy, and the Demands of the Sale  The journey to sell was a long and intensive process. As a mother to two young children and a wife, I still had my day-to-day responsibilities: running the agency, being present with my family, and somehow balancing all this with the intense demands of the sale process. The emotional weight of parting with something so personal was heavy, compounded by the need to maintain the agency’s standards and focus on my family’s needs. Bruce , my advisor from Mertz Taggart, recognized this balancing act and stepped in as more than a business guide; he became my greatest advocate and support system. Empathy and Strategic Expertise  Bruce and the Mertz Taggart team brought a unique blend of empathy and strategic acumen to every aspect of the process. Bruce understood that selling our agency was not just about numbers—it was about preserving a legacy. His focus was not only on maximizing the agency’s value but also on finding a buyer who respected the values that built it. He guided me with skill and precision, making complex decisions easier and ensuring I felt confident at each step. Ongoing Support During Critical Moments One of the most telling moments was when a potential buyer arranged a meeting that could determine the future of the agency. The stakes felt high, and I was nervous about facing such a pivotal moment alone. Without hesitation, Bruce booked a flight the very next day to be by my side, offering both his strategic insights and his steadfast support. His presence turned what could have been an overwhelming experience into one where I felt empowered and reassured. Client-Centered for Every Step of the Journey Throughout the process, Bruce and Mertz Taggart never made me question their commitment to me and my goals. In moments of doubt and exhaustion—when the balance of family, agency responsibilities, and the emotional toll of the sale felt like too much—Bruce reminded me of the impact we had made and the legacy it would leave behind. His encouragement and compassion kept me grounded and helped me see the journey through to the end. A Partner Who Truly Cares Selling For Papa’s Sake Home Care was one of the most significant and emotional decisions of my life. Bruce’s empathy, dedication, and strategic guidance made it possible to honor my promise to my parents while ensuring the agency’s legacy would continue. For anyone considering the sale of a home care agency they’ve poured heart and soul into, Mertz Taggart is more than an M&A firm—they are partners who truly care about their clients’ well-being and success. We are delighted to have received this incredibly in-depth testimonial from our client, Becky Reel . Becky’s story reflects what drives our work at Mertz Taggart: helping healthcare owners navigate the most consequential decision of their professional lives with the guidance, honesty, and advocacy they deserve. Every engagement is personal. Every outcome matters. Considering a Sale of Your Home Care Agency? Whether you’re years away or actively exploring your options, every conversation with Mertz Taggart is confidential. We’re here when you’re ready. Contact us: info@mertztaggart.com | 770.888.1171 Read more stories from our clients on our Testimonials page › Learn about our approach to home care M&A › Follow us on LinkedIn for daily insights ›

By Cory Mertz, Managing Partner — Mertz Taggart   |  Updated March 2026 Executive Summary:  Home-based care agency owners who may sell in the future can learn a lot from private equity firms. Three of the most useful lessons are to plan your exit early, track the right KPIs, and run a competitive sale process with professional guidance. These steps can help owners improve value, prepare more intentionally, and increase the likelihood of a stronger outcome when it is time to sell. If you own a home-based care agency and think you may sell your business someday, there is value in studying the people who do this for a living: private equity firms . Private equity firms (PE firms) acquire, grow, and exit businesses with one goal in mind: maximizing value. They are experienced at identifying what makes a company more attractive to buyers, improving performance over time, and preparing for a successful exit. That does not mean home-based care agency owners should operate like private equity investors. But it does mean there are a few practical habits worth borrowing. Here are three strategies agency owners can take from private equity firms when preparing for an eventual sale. 1. Plan your exit early One of the clearest lessons from private equity is this: they do not wait until the last minute to think about an exit. PE firms usually plan their exit strategy before they even close on purchasing a platform company, or as soon as possible after acquiring it. They think early about likely buyers, key value drivers, timing, and what the business will need to show in order to be attractive in the market. They also align business strategy and performance improvement efforts with that exit plan. As one private equity executive said at a recent conference, “We make our money when we sell, not when we buy.” In some cases, private equity firms will even overpay for an initial platform acquisition just to establish a foothold in the industry. What this means for agency owners: The best exits aren’t rushed, they’re the result of intentional preparation. Early exit planning can help you make better decisions long before you go to market. Your exit plan doesn’t need to be a 50-page document. Start with three things: your target sale price,  your ideal buyer type (strategic acquirer or PE firm),  and a realistic timeline. Then revisit it quarterly. Adjust as your business grows, as the market shifts, and as your personal goals evolve. Planning early gives you time to address the things that could otherwise reduce your value at closing, things like owner-dependence, client concentration, or financials that need organizing. It also gives you the freedom to sell on your own timeline, when you’re ready, on your terms. → Mertz Taggart’s Value Accelerator Program  helps agency owners build a roadmap to maximize value before going to market. 2. Be serious about KPIs PE firms are meticulous about metrics. They track KPIs not just to manage performance, but to build a compelling story for the next buyer. If you want to sell your agency at top-of-market value, understanding which numbers matter most gives you a real advantage. What this means for agency owners: Buyers are looking for agencies with predictable, recurring cash flow and low owner-dependence. The right KPIs can help you improve current performance while also making your business more attractive when the time comes to sell. Don’t just track these numbers; trend them over time . Clean financials and clear KPI dashboards signal operational maturity. They also give confidence in negotiations because we can show exactly what the business is worth and why. If you’re not sure which metrics matter most for your specific agency type, that’s worth a conversation with an advisor who specializes in healthcare M&A. The KPIs that drive valuation in home health may be different from hospice, or from behavioral health. 3. Run a banker-led competitive auction process when you sell We’ll be upfront: as M&A advisors, we have a perspective here. But we’ve also seen firsthand how much the process matters to the outcome. Private equity firms usually do not sell their businesses quietly to a single buyer without competition. Instead, they usually hire investment bankers to run a structured, competitive auction process. The reason is straightforward: when multiple qualified buyers are at the table, the seller gets better pricing, better terms, and more control over the process. A competitive auction process involves: preparing professional marketing materials,  identifying and qualifying the right buyers,  managing confidentiality,  soliciting multiple offers,  and negotiating not just price but the full deal structure including working capital targets, representations, and post-close transition terms. What this means for agency owners: Healthcare M&A has unique dynamics, and sector experience matters. An advisor who knows what buyers in this market look for, how they value agencies, and where issues tend to surface can position the business more credibly, anticipate concerns early, and run a process that is built to drive the strongest outcome. A well-run process with multiple qualified buyers also creates healthy momentum. Buyers who know others are interested tend to move more decisively, put forward stronger offers, and stay committed through due diligence. → See how Mertz Taggart has helped agency owners achieve successful exits on our Transactions  page. The Bottom Line: Your Agency Deserves a Thoughtful Exit Selling your home care agency is about more than a number. It’s about protecting the team you’ve built, the patients you serve, and the legacy you’ve created. It can also be one of the most financially rewarding decisions of your career, if you approach it with the same discipline that the professionals use. Plan early. Know your numbers. Surround yourself with the right people. These are the same principles PE firms rely on, and they’re at the heart of every successful exit we’ve had the privilege of being part of. Considering an exit? Mertz Taggart offers confidential, no-obligation consultations for home care, home health, hospice, and behavioral health agency owners. Start a conversation →

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:  the time commitment of the M&A process, the emotional weight of letting go, the critical role of trust between buyers and sellers, the impact of clean financials on valuation, working capital disputes, labor and compliance risks, and the importance of choosing advisors who specialize in healthcare transactions 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

By Cory Mertz, Managing Partner — Mertz Taggart   |  Updated March 2026 Executive Summary:  Insights from a recent webinar with Maxwell Healthcare Associates and Mertz Taggart. A buyer is not just valuing what a home health or hospice agency has earned. A buyer is valuing how durable those earnings look, how transferable the business feels, and how much risk comes with the transition. At a glance: Revenue matters , but buyers also evaluate the quality of earnings and the reliability of the reporting behind them Accrual-basis financials  help buyers assess performance more accurately Operations matter , especially intake, scheduling, productivity, revenue cycle, and payer workflows Technology matters  when it improves reporting, efficiency, and transition readiness Cultural fit matters  because disruption after closing can affect retention, service delivery, and performance In a recent webinar hosted with Maxwell Healthcare Associates, Mertz Taggart managing partner, Cory Mertz, and Maxwell’s COO, Jay Duty, walked through the key factors that drive how home health and hospice agencies are valued in an M&A transaction. What Financial Metrics Do Buyers Look at When Valuing a Home Health or Hospice Agency? When we assess a company on behalf of a seller, we focus on three high-level financial metrics: revenue, gross margin, and adjusted EBITDA margin. Revenue is where it starts. Generally, larger agencies with higher revenue tend to command stronger multiples, all else being equal. Gross margin tells you how much is left after your cost of providing care, things like: clinician compensation, burden costs, travel, and supplies.  Healthy ranges often look like this: Home health:  45% to 55% Hospice:  50% to 55% Home health can be more variable depending on revenue mix, including episodic revenue, Medicare Advantage, Medicaid, VA reimbursement, and geography. Adjusted EBITDA margin is what’s left after subtracting overhead from your gross profit, with certain adjustments factored in.  Ranges often viewed as attractive include: Home health:  15% to 25% Hospice:  18% to 25% But adjusted EBITDA is rarely simple. Different buyers may evaluate the same agency differently depending on: owner involvement replacement cost retention cost growth trajectory time period under review what the buyer believes is sustainable after closing That is why a multiple means very little without a credible view of adjusted EBITDA. One important detail: buyers evaluate these numbers on an accrual basis, not cash basis. That means revenue is recognized when it’s earned, and payroll is matched to the month the work was performed. The goal is to line everything up so that margins are consistent from month to month. If your books are on a cash basis, having them converted to accrual before going to market gives buyers, and you, a much clearer picture. Why Is Adjusted EBITDA So Important, and So Variable? Adjusted EBITDA is the number that multiples are applied to, which is why it matters so much. But it’s also one of the most variable parts of a valuation. Two buyers can look at the same company and arrive at different adjusted EBITDA figures, and both can be reasonable. The adjustments depend on factors like: the time period being evaluated (pro-rata, trailing twelve months, or another period),  whether the company is growing,  and how the buyer models replacement or retention costs for the owner after closing. This is worth keeping in mind if someone approaches you with a high multiple. A multiple doesn’t mean much without understanding what it’s being applied to. An advisor or broker who leads with a lofty multiple before doing a thorough analysis of your financials may not be giving you the full picture.  The more valuable conversation is one that starts with what your adjusted EBITDA actually looks like, on an accrual basis, with honest adjustments, so you can make a sound decision about whether and when to go to market. How Do Operational Efficiencies Affect an Agency’s Value? Beyond the financials, buyers look closely at how well an agency runs day to day.  The areas that come up most often include: clinical quality, intake and scheduling,  revenue cycle management,  and workforce productivity.  How efficiently you convert referrals into admissions, process eligibility and authorizations, and collect on claims all contribute to the picture a buyer forms of your agency. If those back-office processes are running smoothly, it signals lower risk. If they’re not, buyers may see it as margin they can improve, which can work in their favor during negotiations, not yours. Workforce management is especially important because labor is the largest cost in this business. Buyers want to understand how you staff your branches, how productive your clinicians are, and what systems you use to manage scheduling and capacity. The more visibility you have into your own workforce data, the stronger your position. Clinical quality matters too.   Strong documentation, solid patient outcomes, and a clean regulatory track record reduce risk for a buyer. And in a market that’s moving more toward managed care and Medicare Advantage, the ability to manage authorizations and payer-specific requirements efficiently has become a significant factor. How Does Technology, Especially EMR Compatibility, Factor Into Valuation? Technology has moved from a “nice to have” to a real factor in how agencies are evaluated.   The EMR system is the starting point. From a buyer’s perspective, if the seller is on the same EMR, that’s a bonus as it reduces transition risk, and some buyers may be willing to pay a bit more for that smoother integration path. Even when the EMR platforms match, the way each organization uses the system can vary significantly. How you define terms, how you structure reporting, and whether you close out months consistently all affect how useful the data is to a buyer during due diligence. Beyond the EMR, buyers are paying attention to the broader technology stack. Speech recognition tools that cut documentation time for nurses, referral management platforms, predictive analytics, workforce scheduling tools, patient satisfaction surveying — these are all areas where technology investments can show a buyer that your agency is operating efficiently and making data-driven decisions. The key question a buyer asks about technology isn’t just “what do they have?” It’s “how are they using it?”   An agency that has strong tools and is leveraging them to improve productivity, manage care quality, and make strategic decisions is a more attractive acquisition than one with the same tools collecting dust. What Kinds of Risk Are Buyers Most Focused On? For strategic buyers (companies already in the space looking to grow), the primary concern is transition risk.   What happens to the business if the owner steps away? Buyers want to understand: what systems are in place,  what the leadership bench looks like,  and whether key referral relationships are tied to the owner personally or distributed across the team. If a buyer feels that the cash flow could deteriorate once the owner disengages, that’s a risk they’ll price into their offer. Building a management or executive team that can operate independently, and referral relationships that aren’t concentrated in one person, are two of the most valuable things a seller can do before going to market. For financial buyers (private equity groups or family offices looking for a platform to enter the space) risk is still important, but they’re also evaluating opportunity. They’re looking at: whether the platform can scale, whether the leadership team can support growth,  and whether there’s overhead capacity to expand.  In those situations, a financial buyer may be willing to pay a premium to get into the industry, especially if they see a path to meaningful returns over a four- to five-year horizon. Why Does Cultural Alignment Matter in a Home Health or Hospice Transaction? This is one of the areas that surprises people. Culture isn’t just a soft consideration, it can directly influence which offer a seller accepts and how the transition goes. When we run a competitive process and present a seller with multiple strong offers, it’s not unusual for the seller to choose an offer that isn’t the highest in terms of dollars.  They choose the buyer they feel most confident will get the deal to closing without trying to renegotiate, who will treat their employees well, and who will take care of the legacy they’ve built. For many owners, this is their life’s work. The buyer who respects that often wins. From the employee perspective, a change in ownership can be unsettling. People worry about what it means for them, whether their roles will change, whether the culture they’ve been part of will survive.  A thoughtful buyer plans for that.  They work collaboratively with the seller on an employee communication strategy, helping ensure the right people are brought in at the right time and in the right way, without compromising confidentiality. There’s also a practical reason culture matters:  every transaction involves a holdback for potential indemnification claims. If the relationship between buyer and seller is strong, the post-closing period tends to go smoothly. If it’s not, even minor disagreements can escalate. We’ve seen situations where buyers who felt things weren’t going well tried to place blame on the seller, even when the seller had done nothing wrong. It took time, energy, and legal costs to resolve.  Choosing a buyer whose values align with yours isn’t just about feeling good. It’s about protecting yourself after the deal is done. When Should You Start Preparing for a Sale? Earlier than most owners expect. Some of our clients have engaged us years before they planned to go to market. In one case, a client first reached out with a six-year timeline. We started by understanding their objectives and running what we call a gap analysis:  here’s where your valuation is today,  here’s where you want it to be,  and here’s what needs to happen to close that gap. Over time, month over month, quarter over quarter, we check in, update the analysis, and make recommendations. When both the value and the timing align, that’s when you go to market .  Even if a sale is years away, getting a clear, honest picture of what your agency looks like through a buyer’s eyes is one of the best investments you can make. It gives you a roadmap for the improvements that will matter most when the time comes. If you’re thinking about  a future sale of your home health, home care, or hospice agency, we’re happy to have a confidential conversation about how your agency would be received in the M&A marketplace. Reach out to us at info@mertztaggart.com or visit our Value Accelerator Program to learn how we help owners prepare. About the Author Cory Mertz , M&AMI, is a managing partner at Mertz Taggart, where he advises home health, home care, and hospice owners on selling their businesses. With nearly two decades in healthcare M&A and more than 160 completed transactions across the firm, Cory brings firsthand experience to every conversation.

By Cory Mertz, Managing Partner — Mertz Taggart   |  Updated March 2026 Executive Summary: Owners of home health, hospice, and home care agencies are often approached by buyers before they are actively planning a sale. While those inquiries can be useful, they should be handled carefully.  A buyer-led conversation rarely produces the best possible outcome for the seller. Agency owners should prepare before responding, understand how professional buyers approach acquisitions, and consider working with an experienced healthcare M&A advisory firm if they are seriously considering a sale now or in the future. If you own a home health, home care, or hospice agency, you already know the feeling. The emails. The LinkedIn messages. The phone calls from people you’ve never met, saying they want to buy your company. It’s flattering. It’s a little overwhelming. And if you’re at a point in your career where you’ve thought about what’s next, it can be tempting to engage. But here’s what most agency owners don’t realize: an unsolicited offer isn’t really an offer.  It’s an opening move.  The buyer doesn’t know your financials, your payer mix, your retention numbers, or what makes your agency special. If they’re quoting a “multiple of X” or telling you they paid “Y for a company just like yours,” they’re working with assumptions, not information. When a buyer contacts you about purchasing your home care agency, don’t ignore the inquiry, but don’t rush into it either. Take time to research the buyer, understand your agency’s true value, and consider engaging a healthcare M&A advisor who can help you evaluate whether it’s the right time and the right opportunity. That doesn’t mean you should ignore these inquiries. They can actually be useful. But how you respond matters a great deal. Here’s how to approach it thoughtfully. How Should You Respond to an Unsolicited Offer for Your Agency? The most important thing is not to rush.   You don’t need to respond the same day, and you certainly don’t need to share any confidential information in an initial conversation. Before you reply, take a few steps to understand who you’re dealing with.   Look at their LinkedIn profile and company website. If it’s a buyer (not a broker), check whether they’ve completed previous acquisitions in home care, hospice, or home health. If the identity of the buyer is vague or hard to verify, that’s a reason to proceed carefully. If someone claims to be a broker representing a buyer, a credible one will share the buyer’s name early in the conversation and be clear about who’s paying their fee. Be cautious of brokers who initially claim to have a buyer, then pivot to pitching themselves as your sell-side representative. When you do respond, keep it simple.   Ask how they plan to finance the acquisition and what drew them to your agency specifically. A serious buyer will have clear answers. Then let them know you’ll want to consult with an advisor before moving forward. Any credible buyer or investor will respect that, and in fact, most of them appreciate having a professional intermediary in the process because it sets clear expectations on both sides. Should You Sell Your Home Care Agency to the First Buyer Who Reaches Out? We understand the appeal. When someone puts a number on the table, especially if it sounds reasonable, it’s natural to want to explore it.  But in our experience, negotiating with a single buyer almost always results in a lower price and less favorable terms than a structured process with multiple qualified parties. Think about it from the buyer’s perspective. If they know they’re the only one at the table, there’s no urgency to put forward their strongest offer. They can take their time, ask for more concessions, and renegotiate after due diligence. When there are multiple interested parties, the dynamic changes. Buyers who know others are interested tend to move more decisively and submit more competitive terms. This is exactly how private equity firms handle every one of their exits. They hire an investment bank or M&A advisory firm to run a competitive process with a curated group of qualified buyers and investors. They believe, and we’ve seen it confirmed over and over, that this is the most reliable path to the best possible outcome for the seller. → Related: How to Sell Your Home Care Agency: 3 Exit Strategies from Private Equity What Makes a Buyer “Qualified” to Acquire a Home Care Agency? Not every buyer who reaches out is the ideal buyer for your agency.  Whether you’re working with an advisor or evaluating interest on your own, it helps to understand what separates serious acquirers from casual shoppers. A qualified buyer generally meets three criteria: They have the financial resources to complete the transaction, including access to sufficient cash or a committed fund. A professional buyer won’t hesitate to share this information with you or your advisor.  They understand the home-based care industry. Strategic buyers will naturally have this knowledge, but if you’re speaking with a financial buyer or PE firm, you want to make sure they’re well-educated on the sector before you invest time in the process.  They have meaningful transaction experience. Most serious strategic acquirers have dedicated M&A teams. Smaller or newer buyers may struggle to execute efficiently, which can extend timelines and introduce risk. Building an “A-list” of buyers who meet all three of these criteria is one of the most valuable things an M&A advisor does. It’s also one of the hardest to do on your own, because it requires knowing who’s actively acquiring, what they’re looking for, and how to approach them confidentially. Why Does Confidentiality Matter When Selling a Home Care Agency? This is something that weighs heavily on owners, and rightly so. If word gets out that you’re exploring a sale, it can unsettle your employees, your referral sources, and even your patients. In some cases, it can disrupt the sale itself. An experienced healthcare M&A firm protects confidentiality by controlling what is shared, with whom, and when. The right information is shared with the right buyer at the right time, so you can create interest without exposing details too early or disrupting the business. This is one of the key reasons we encourage owners not  to engage deeply with unsolicited buyers on their own. One conversation with the wrong person, at the wrong time, can create problems that are difficult to walk back. What Does a Healthcare M&A Advisor Actually Do? One of the main benefits of working with a healthcare M&A advisory firm is that it lets you stay focused on what you do best, running your agency, while your representatives handle the details of the transaction. A good advisor takes the time-intensive work off your plate:  preparing and updating the financial data book and Confidential Information Memorandum,  curating the buyer list,  running the competitive bid process,  coordinating with attorneys and accountants,  and addressing potential roadblocks before they become deal-breakers.  They also bring perspective on what’s considered “market” for both value and terms, so you can negotiate from a position of knowledge rather than guesswork. For home health, home care, and hospice owners, working with an advisor who specializes in healthcare M&A is especially important. A healthcare-focused advisor understands how buyers in this space evaluate agencies, what they are willing to pay for, and how to position the business credibly in the market. They can also spot issues early, help resolve them before going to market, and bring added credibility with buyers because they understand the industry and can speak their language. → See how Mertz Taggart has guided agency owners through successful transactions on our Transactions  page. It’s Never Too Early to Understand Your Options Receiving an inquiry about your agency can be the start of an important conversation, even if you’re not ready to sell today.  The best way to respond from a position of strength is to understand what your agency is worth, what the current market looks like, and what a well-run process can deliver. For most home care owners, 80–95% of their net worth is tied up in their business. That’s reason enough to treat the sale like the significant financial event it is, with the right preparation, the right team, and the right process behind you. Curious about what your agency is worth? Mertz Taggart provides confidential, complimentary valuations for home health, home care, and hospice agency owners. Whether you’re considering a sale now or just want to understand your options, we’re happy to have the conversation. Request a confidential valuation → About the Author Cory Mertz , M&AMI, is a managing partner at Mertz Taggart, where he advises home health, home care, and hospice owners on selling their businesses. With nearly two decades in healthcare M&A and more than 160 completed transactions across the firm, Cory brings firsthand experience to every conversation.

By Cory Mertz, Managing Partner — Mertz Taggart   |  Updated March 2026 If you’ve decided to explore selling your home health, home care, or hospice agency, one of the first, and most important, decisions you’ll make is who to work with. There are a lot of firms reaching out to agency owners right now. Some are well-established advisory firms with deep healthcare experience. Others are generalist brokers. Some are newer entrants still building their track records. And increasingly, buyers themselves are reaching out directly, hoping to start a conversation before you’ve engaged any representation at all. Here's something we believe strongly: finding a  buyer for your agency is the relatively easy part. There's no shortage of active buyers in home-based care right now, and most of them are personable, credible operators. But here's the question that matters more: how do you know which buyer is the ideal  buyer for you and your agency? That's where the process makes the difference. What separates a good outcome from a great one is having an advisor who can run a confidential, competitive process that surfaces the right buyers, maximizes your value, navigates diligence, and gets you to a closing with few surprises. That takes a particular kind of firm. Executive Summary: When choosing an M&A advisor to sell your home care agency, evaluate six things:  their credibility with active buyers, their ability to run a confidential competitive process, their track record in healthcare transactions, their willingness to be candid about valuation, their communication and negotiation skills, and their depth of knowledge in the home-based care industry. 1. Does the Firm Have Credibility with the Buyer Community? This is one of the most overlooked factors, and one of the most important. The firm representing you needs to have earned the respect of the buyers and investors who are active in home-based care M&A. That credibility directly affects how buyers respond to the marketing materials, how they view the financial adjustments your advisor presents, and how negotiations unfold. Buyers respond well to firms they know, firms that have a reputation for thorough preparation and honest advocacy. When a respected advisory firm brings a deal to market, buyers take it seriously from the start. They know the process will be well-run, the information will be credible, and the advisor will hold them accountable throughout.  You can get a feel for this by asking about the firm’s experience with active buyers in the space, the kinds of transactions they’ve recently brought to market, and how they position clients with sophisticated buyers. A strong advisor should be able to answer those questions clearly and confidently. 2. How Will the Firm Protect Confidentiality? Confidentiality is one of the biggest concerns owners have when considering a sale, and for good reason. If word gets out prematurely, it can unsettle your employees, your referral sources, and your patients. Ask your prospective advisor how they handle confidentiality at each stage:  How do you curate your target buyer or investor list? Will your agency be listed publicly, or is the outreach targeted and discreet? Some firms rely on online listings or broad-market blasts that can give competitors and local agencies clues about your intentions. A thoughtful advisor tailors the process to your situation, reaching the right buyers without exposing your business to unnecessary risk. Every transaction is different, and a good advisor will customize their approach based on your specific goals, your local market, and your timeline. 3. What Is the Firm’s Track Record in Healthcare M&A? Experience matters, but the kind of experience matters even more. You want a firm that has completed meaningful transactions in the home-based care space specifically, not just healthcare broadly, and not just a handful of deals. Ask about the number and types of transactions they’ve closed. Look for evidence that they’ve worked with agencies similar to yours. Client testimonials and case studies can give you a sense of how the firm handled the complexities that come with healthcare deals. A firm with a strong track record in your sector will also know the active buyer landscape well, including who’s acquiring, what they’re looking for, and what terms are realistic in the current market. → See examples of completed transactions on our Transactions  page. 4. Will the Firm Be Candid with You About Valuation? This one is worth paying close attention to. When you’re evaluating advisors, you’ll likely get a sense of what they think your agency is worth. Be cautious of any firm that leads with an unusually high valuation, especially before they’ve done any real analysis. An inflated number can feel good in the moment, but it’s often a tactic to win the engagement rather than an honest assessment of what the market will bear. Most advisory engagements include a one-year term, plus a tail period of 18–24 months covering any buyers the firm introduced during the engagement. That’s a meaningful commitment. You want to make sure you’re entering it with a firm that’s being straight with you, not one that overpromised to get your signature. The right advisor will let the market determine value through a well-run competitive process, and they’ll help you understand the range of likely outcomes based on real data and current M&A marketplace. 5. How Will the Firm Communicate and Negotiate on Your Behalf? Selling a home care agency is a complex process with a lot of moving parts: attorneys, accountants, due diligence teams, and multiple buyer conversations happening simultaneously. Your advisor is the person managing all of it on your behalf. Their ability to communicate clearly, keep you informed without overwhelming you, and advocate for your interests in negotiations is what separates a good experience from a stressful one. During your initial conversations with an advisor, pay attention to how they communicate with you:  Are they responsive?  Do they explain things in plain language?  Do they listen to what matters to you, or do they default to a one-size-fits-all pitch?  The way a firm treats you before they have the engagement is usually a good indicator of how they’ll treat you after. On the negotiation side, look for a firm that’s comfortable holding firm when it matters, on price, on deal terms, on timeline, while maintaining constructive relationships with the other side. The best outcomes happen when your advisor earns both your confidence and the buyer’s respect. 6. Does the Firm Truly Understand the Home-Based Care Industry? Healthcare M&A is not the same as selling any other business. Home health, home care, and hospice agencies operate in a world of state licensing, Medicare certification, Medicaid reimbursement, and clinical compliance requirements that directly affect valuation and deal structure. An advisor who doesn’t understand these dynamics can miss things that cost you real value. Industry expertise also means knowing how buyers in this space think and operate. Strategic acquirers (larger home care companies building regional scale) evaluate deals differently than PE firms assembling healthcare platforms. A knowledgeable advisor can position your agency in a way that resonates with both buyer types and highlights the specific value drivers that matter in your sector. Ask your prospective advisor about the subsectors they’ve worked in and how they stay current on market trends. An advisor who publishes original research, speaks at industry conferences, and engages with the home-based care community is more likely to bring the depth of insight you need. Choosing Well Is Worth the Time Deciding to sell your agency is often the biggest decision of an owner’s career. For most home care owners, the business represents not only their livelihood but also their life’s work, their team, and their reputation in the community. The firm you choose to represent you will shape every part of the experience, from the initial valuation guidance through closing and beyond. Take the time to ask the right questions. Talk to more than one firm. Pay attention to how they make you feel, not just what they promise. And remember: the goal isn’t just to find someone who can sell your agency. It’s to find someone who will protect your interests, maximize your value, and help you feel confident through every step of the process. Want to learn more about how we work? We’re happy to walk you through our process, answer your questions, and help you understand your options — with no pressure and no obligation. Start a confidential conversation →   About the Author Cory Mertz, M&AMI, is a managing partner at Mertz Taggart, where he advises home health, home care, and hospice owners on selling their businesses. With nearly two decades in healthcare M&A and more than 160 completed transactions across the firm, Cory brings firsthand experience to every conversation.

Mertz Taggart Home Health, Home Care & Hospice M&A Update for Q3 2021 With both the height of the COVID-19 pandemic and the start of the Patient-Driven Groupings Model (PDGM) now in the rearview mirror, in-home care buyers and motivated sellers are finding it easier to come together on deals. There were 44 total home health, hospice and home care transactions completed in the third quarter of 2021, up from the 41 deals that took place in the previous quarter. Over the past three years, the only quarter with more transactions was 2020 Q4. “All three sub-industries remain strong, but the increased activity has little to do with increased demand,” Mertz Taggart Managing Partner Cory Mertz says. “Demand has been strong for several quarters and continues. This is a supply-driven market.” Note: Total industry transactions does not necessarily equal the sum of the sub-industries, as many transactions include more than one sub-industry. There are a few main factors helping drive supply in the back half of 2021. For starters, there’s the likely increase in the capital gains tax rate. When put in effect, it will diminish a prospective seller’s return or force them to place a bigger price tag on their business, in turn limiting buyer interest. What remains unknown is when this hike will go into effect, and its severity. “The Biden administration came out of the gate with some pretty draconian targets,” Mertz says. “The current “Build Back Better” reconciliation package is still in negotiations, but it appears to be much less severe than the original targets.” However, he adds, it’s quite possible that the effective date is already in the rearview mirror, with the current package delayed in congress. In addition to a capital-gains tax increase , the COVID-19 pandemic is nearly entering its second year, bringing sustained operational difficulties. “We’ve heard from many owners who are feeling a sense of burnout,” Mertz says. “Maybe they were already thinking about a sale in the next couple of years, but then the ongoing pandemic just accelerated their timelines.” Looking ahead, home health supply may be bolstered even further by the proposed Home Health Value-Based Purchasing (HHVBP) Model expansion as well. Franchise deals headline home care M&A activity There were at least 18 home care-related transactions in Q3 2021, according to Mertz Taggart data. That was on par with the previous quarter, which registered 19 home care deals. One of the splashiest home care transactions in the third quarter was Honor’s acquisition of Home Instead Senior Care . Combined, the Honor-Home Instead enterprise represents more than $2.1 billion in home care services revenue, according to the companies. Private equity group Searchlight Capital Partners also acquired a majority stake in Care Advantage in the third quarter. Care Advantage offers a variety of in-home care services to patients across Virginia, Maryland, Washington, D.C., and Delaware. ModivCare Inc . (NYSE: MODV) closed on a $340 million purchase of CareFinders Total Care early on in Q3, advancing the publicly traded company’s plan to become one of the largest personal care services providers in the country. ModivCare purchased Simplura Health Group in September 2020. A key theme to the home care M&A landscape throughout this year has been lots of activity around franchisors. “The third quarter saw another franchisor acquired in Home Instead” Mertz says. “That brings the total number of franchisors who have sold in 2021 to three, compared to just three in the previous five years. Franchisors give financial buyers both immediate scale, which can be leveraged, and the ability to quickly grow EBITDA via acquisition of both existing franchisees and independents. This is a model that has been proven by other PE groups.” Home health transactions up The home health sub-sector saw a noticeable spike in dealmaking. Mertz Taggart tracked at least 16 home health-related deals in Q3 2021, on par with Q2. Home health M&A activity is likely to remain robust moving into 2022, especially if the U.S. Centers for Medicare & Medicaid Services (CMS) finalizes its plan to expand HHVBP to all 50 states. “As part of its basic framework, the HHVBP proposal exposes home health agencies to a 5% upward or downward payment adjustment,” Mertz says. “Agencies that perform well can take any bonus payments and reinvest in the business or in M&A. Those who don't perform well effectively pay a penalty to those who do." LHC Group Inc. (Nasdaq: LHCG) made a flurry of deals in August, including the purchase of Alexandria, Virginia-based Cavalier Healthcare Services . Strategically, the acquisition opens up a new service area for LHC Group, allowing it to better leverage its operations in the Washington, D.C., and Maryland markets. Mertz Taggart provided exclusive transaction advisory services in this transaction, representing the seller. In July, the Visiting Nurse Association (VNA) — a nonprofit provider in Omaha, Nebraska, and Council Bluffs, Iowa — sold its home health and hospice operations to Amedisys Inc. (Nasdaq; AMED). Under the terms of the transaction, VNA’s home health and hospice services rebranded to “Amedisys Home Health” and “AseraCare Hospice, an Amedisys Company,” respectively. Mertz Taggart provided buyside advisory services to Amedisys in this transaction. The biggest home health-related deal in Q3 2021 also came from LHC Group. In September, the company announced it was acquiring 23 home health locations, 11 hospice agencies and 13 therapy businesses from Brookdale Senior Living Inc . (NYSE: BKD) and HCA Healthcare (NYSE: HCA). The transaction represented annualized revenue of about $146 million, according to the company. Hospice dealmaking takes another leap There were at least 23 hospice-related deals in Q3 2021, up from 17 transactions in Q2. Since the start of 2018, no quarter has seen more hospice M&A activity apart from the fourth quarter of last year, which tallied 29 hospice-related transactions. The pure-play hospice transactions in Q3 included Agape Care’s purchase of Integrity Hospice-Dubin , in addition to Charter Healthcare Group’s acquisition of Generations Hospice Care. “Humana Inc. (NYSE: HUM) additionally completed its $8.1 billion acquisition of Kindred at Home in this previous quarter,” Mertz says. “That’s a deal to keep an eye on from a hospice perspective, as Humana has discussed plans to separate Kindred’s hospice operations.” Entering the final stretch Of the 44 home health, hospice and home care transactions in Q3 2021, private equity buyers and their portfolio companies led the way with 25 deals. Public companies like LHC Group, Amedisys and others took part in at least 16 transactions. “We predicted a very strong finish to an already-strong year,” Mertz says. “The third quarter did not disappoint.”

A steady second half of 2020 bodes well for 2021. Behavioral health M&A remained steadily active in the fourth quarter of 2020, with a total of 27 transactions, according to the latest data from M&A advisory firm Mertz Taggart. Announcements in addiction treatment led the segment in Q4 with some large groups moving forward on multiple acquisition deals. The year finished with 97 transactions overall. 2020’s total number of deals were comparable to those in the previous two years, despite a global pandemic. In 2019, the segment witnessed 97 announcements, and in 2018 an even 100. “The second half of 2020 was as strong as we’ve seen ,” said Mertz Taggart Managing Partner Kevin Taggart. “ Combine that with the threat of a near-term capital gains tax hike, and we expect an active 2021.” He said new partnerships and access to capital will become especially important in the months to come as healthcare providers emerge from the coronavirus pandemic with a more competitive landscape than before. “We know that financial mechanisms have been shifting,” Taggart said. “While loans and operating income remain the primary sources of capital, private equity investment could be the important variable that contributes to a more optimistic outlook for many behavioral health providers.” Taggart believes the continued infusion of private equity assets combined with a clear forecast of pent-up demand for services will offer a boost to revenue by mid-year. Yet, providers that are able to build capacity quickly will also need to be resourceful in how they approach the imbalance of supply and demand, leveraging technology and strong operational sophistication. “We see additional evidence of a positive outlook in behavioral health based on the number of new center openings across the country,” Taggart continued. “And these are brick-and-mortar locations, banking on an increase in in-person services, even as they continue to rely on telehealth visits.” With an anticipated surge in demand, new center openings and private equity interest, Taggart believes M&A activity could reach a new peak in mid-to-late 2021. The last three years have demonstrated that there’s still plenty of room for strategic acquisitions in behavioral health. Note: The sum of sub-industries (broken down above) does not always equal total sector deal volume, as some transactions include more than one sub-industry. Addiction Treatment In Q4, the deal activity continued for several growing PE-backed portfolio companies. As they add new locations, many are also launching rebranding efforts to unite their networks in name as well as in operations. A recent survey from the National Association of Addiction Treatment Providers noted that providers are making significant investments in technology, which will likely set them up for more objective quality-of-care measurement, which also leads to improved reimbursement from payers. “Buyers are definitely not looking to add scale for the sake of scale,” said Taggart. “Proven clinical quality and the ability to increase census has to be part of the growth strategy.” It was a busy quarter for BayMark Health Services with a number of significant deals. The addiction treatment organization acquired Liberty Bay Recovery Center , a residential treatment center in Portland, Maine, making it the second residential offering in the BayMark network of more than 250 facilities across the United States and Canada. Mertz Taggart represented Liberty Bay in the transaction . BayMark also announced the acquisition of Limestone Health , an opioid treatment program with three locations in Indiana, formerly owned by Springstone, Inc. The transaction represents BayMark’s first entry into the state. In December, it acquired Choices of Louisiana , which offers opioid treatment programs in three locations, and additionally in a separate transaction, it added Recovery Pathways , an office-based opioid treatment provider with three locations in Pennsylvania, to its roster. Also in December, BayMark acquired Echo Treatment Center in Pennsylvania, which will fall under the MedMark Treatment Centers brand. BayMark is a portfolio company of Webster Equity Partners. Summit BHC has acquired Seabrook in New Jersey, adding a 153-bed inpatient center and three outpatient centers to its portfolio. The deal marks Summit’s first entry into New Jersey and brings the company’s total number of locations to 22. Mertz Taggart provided sell-side services for Seabrook in the transaction. Landmark Recovery acquired Las Vegas Recovery Centers in December . Mertz Taggart provided sell-side services for Las Vegas Recovery Centers in the transaction. Landmark now operates in four states and plans to open 10 new locations in 2021. Arisa Health announced the acquisition of the Wilbur D. Mills Treatment Center in Arkansas, which includes a residential and outpatient center as well as an apartment complex for those in recovery. It will be rebranded as Arisa Health Recovery at Mills. Behavioral Health Group announced several deals in Q4. It expanded into Rhode Island with the acquisition of the Center for Treatment & Recovery, LLC , which will be rebranded as BHG Pawtucket Treatment Center. It also announced it had expanded its footprint in Alabama with the acquisition of Huntsville Recovery, Inc. and Stevenson Recovery, Inc. in October. The two locations will be rebranded with the BHG name. In November, BHG acquired Wellness Ambulatory Care in Tennessee. In all, the company operates across 15 states. Discovery Behavioral Health acquired Prosperity Wellness Center , a 40-bed residential treatment center in Washington, representing the 10th brand added to the Discovery portfolio. The organization operates four existing outpatient centers in the state as well. Center For Discovery and Cliffside Malibu merged in 2018 to form Discovery Behavioral Health as a newly created parent company, backed by Webster Equity Partners . Autism Services & Intellectual/Developmental Disabilities Individuals with autism spectrum disorder and intellectual/developmental disabilities were among those experiencing added distress in 2020 attributed to reduced access to services because of the pandemic, according to a report from the National Institutes of Health. As a result, more individuals will likely need a higher level of care in 2021, including involvement from family and loved ones. “Care that extends to the family will be a sought-after service offering,” Taggart says. “We should expect to see buyers looking for acquisitions to enhance comprehensive services and whole-person care.” SPG in October announced two deals. It acquired applied behavioral analysis (ABA) provider Family Support Center as well as Go2Consult , a speech and language services provider. The transactions broaden the geographic coverage for SPG, a portfolio company of Ridgemont Equity Partners . Blue Sprig Pediatrics, Inc. announced a deal to acquire the assets of the Michigan-based Momentum Autism Therapy Services , a center- and home-based provider of ABA services. Pharos Capital Group, LLC in December acquired Catalyst Behavioral Solutions , a Utah-based mental and behavioral health services provider, marking its seventh acquisition. Catalyst offers Catalyst Academy, a program for children. In a platform deal , New Capital Partners and OSF Ventures , part of the OSF Health System, acquired DotCom Therapy, Inc , provider of virtual counseling and therapy for autism spectrum disorder. Caravel Autism Health announced the acquisition of Behavior Therapy Solutions of Minnesota . The combined organization will serve children with autism and their families through a network of six autism therapy centers in the state. Apara Autism Centers in December acquired Behavior Pioneers , a provider of ABA services with four locations in Texas. Mental Health Even now, providers are still wrestling with parity issues, Taggart said. Therefore, mental health organizations that have beneficial in-network contracts with payers will be attractive to strategic buyers. And consolidation will help providers gain the scale they need to bring much-needed leverage to the negotiating table. And any organization that can demonstrate comparable quality of care and reasonable profitability through the use of virtual appointments will be an attractive target. Pathways Health and Community Support, LLC completed the acqu here isition of Access Family Services, Family Behavioral Resources , and Autism Education and Research Institute —three intervention service organizations which will be combined into one entity. Pathways operates in 18 states and the District of Columbia. Previously, Atar Capital acquired Pathways from Molina Healthcare in 2018. Monte Nido & Affiliates , a portfolio company of Levine Leichtman Capital Partners , acquired Rosewood Ranch, L.P. , a network of three eating disorder treatment facilities in Arizona. With the transaction, Monte Nido now operates 29 residential and outpatient facilities in 11 states. The Stepping Stones Group , announced the acquisition of Ardor School Solutions , a provider of school-based therapeutic and behavioral health services. Stepping Stones is a portfolio company of Five Arrows Capital Partners . The deal expands the organization’s geographic footprint into New Mexico and Arizona. ProtoCall Services , a 24/7 telephonic crisis intervention provider acquired The Shrink Space , a referral management software platform that is used in higher education with a national network of more than 4,000 licensed clinicians, prescribers and treatment centers. Private equity firm Kelso has acquired a majority interest in Refresh Mental Health , an outpatient mental health network with 200 locations nationwide. Kelso’s stake in Refresh was acquired from affiliates of investment firm Lindsay Goldberg, which helped found Refresh in 2017. Locations acquired in this platform deal include outpatient substance use disorder, eating disorder and mental health treatment centers. Summit Behavioral Healthcare LLC purchased the shuttered 92-bed Clear View Behavioral Center in Colorado for $29.2 million in a deal that closed in December. Summit intends to apply for a new license and begin operations within the first six months of 2021. In a platform deal, Revelstoke Capital Partners acquired Family Care Center , which provides outpatient psychiatry services to the U.S. Armed Forces and veterans in Colorado. The organization plans to expand services in the state and in new geographic areas. Latticework Capital Management in December acquired Beacon Behavioral Hospital, which operates seven intensive outpatient locations and four inpatient hospitals in Louisiana. Now with this platform deal, leaders plan to expand into new states and add new service offerings. Magellan Health, Inc. in December completed a transaction to acquire a 70% interest in Bayless Integrated Healthcare , an outpatient behavioral health and primary care provider in Arizona. Magellan’s core competency has been in managed care, however, the organization has the option to buy the remaining equity in Bayless within the next 36 months. Bayless brings additional integrated health, telehealth and other provider capabilities to the Magellan portfolio. View the Q3 2020 Behavioral Health Report . Trackbacks/Pingbacks Behavioral Health M&A Report: Q1 2021 – Mertz Taggart - […] a busy quarter to close out 2020, BayMark Health Services stayed busy in the new year, announcing the acquisition of Partners in […]

BATON ROUGE, La., June 01, 2020 (GLOBE NEWSWIRE) — Amedisys, Inc. (NASDAQ:AMED), a leading provider of home health, hospice and personal care, announced today that, through one of its wholly owned subsidiaries, it has closed on its acquisition of Homecare Preferred Choice, Inc., doing business as AseraCare Hospice (“AseraCare Hospice” or “AseraCare”), a national hospice care provider with an executive office in Plano, Texas and administrative support center in Fort Smith, Arkansas. Under the terms of the agreement, Amedisys acquired 100 percent of the ownership interests in AseraCare Hospice for a cash purchase price of $235 million, which is inclusive of a $32 million tax asset bringing the net purchase price to $203 million. The Company did not use any of the funds received by the Company from the Public Health and Social Services Emergency Fund that was appropriated by Congress to the Department of Health and Human Services in the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act to fund the acquisition. “AseraCare has been on our radar for a long time. We have long admired their strong culture, focus on patients and employees and commitment to always providing high-quality care,” stated Paul Kusserow, Amedisys’ president and chief executive officer. “We are excited about the opportunity, as one company, to bring the gift of hospice to more communities.” Founded in 1994, AseraCare Hospice cares for more than 2,100 patients daily and employs more than 1,200 hospice professionals in 44 locations across 14 states, generating approximately $117 million in annual revenues. This acquisition adds greater scale to Amedisys’ high-quality, nationwide network. Combined, our new hospice operations will include 190 care centers in 35 states, with an average daily census of approximately 14,000 patients and approximately 7,000 hospice employees. “We feel privileged to welcome AseraCare Hospice into the Amedisys family. We share our commitment to delivering compassionate, patient-centered care to patients and their families, and a culture of engagement and support to our colleagues and caregivers,” said Anthony Mollica, Amedisys’ president of hospice. “We are all in the hospice business because we care. For us, this is not our job; caregiving is our calling.” This acquisition is the fourth hospice acquisition for Amedisys since 2019. The Company acquired and integrated Compassionate Care Hospice in February 2019, RoseRock Healthcare in April 2019 and Asana Hospice in January 2020.   “AseraCare and Amedisys have always shared an absolute and sacred commitment to help our patients live each day to its fullest, one person, one family and one community at a time,” stated AseraCare President Larry Deans. “I am fully confident that Amedisys will continue and build upon our mission-driven purpose and high-quality care for our patients and families for years to come.” Read more here… GlobeNewswire Click to read Amedisys to Acquire AseraCare Hospice for $235 Million