Home-care agencies sell on client hours, caregivers, and licensing, whether non-medical or skilled. Here is what drives value.
A home-care agency's value is its recurring client hours and caregiver workforce, billable hours per week, client retention, payor mix, and a reliable, retained roster of caregivers in a tight labor market. Recurring, well-staffed hours are the asset.
License type and payor mix define the business. Non-medical agencies (Home Care Organization licensing) differ sharply from skilled home health (Medicare-certified and far more regulated) in value and diligence, and private-pay revenue is generally valued more richly than government-payor hours.
Most buyers value a home care agency on a multiple of Seller's Discretionary Earnings (SDE), your profit plus the owner's salary and the personal expenses run through the business.
Home-care agencies are typically valued on a multiple of SDE or adjusted EBITDA, commonly around 2 to 4 times, with recurring hours, strong caregiver retention, private-pay concentration, and (for skilled agencies) Medicare certification driving the number. I present hours, payor mix, and staffing and coordinate with your advisors on any licensing transfer.
A broker's job is to rebuild your SDE with the right add-backs so your true earning power, not just the tax-return bottom line, sets the price. Get a free, confidential valuation →
Selling a home care agency works best when no one finds out until the right moment. Employees, competitors, customers, and suppliers learning early is the number-one fear owners have, and for good reason, it can cost you staff and revenue mid-sale. I market every business with a blind profile: a teaser that describes the opportunity, the numbers, and the area only in general terms, and never names your business. Every buyer is screened and signs a non-disclosure agreement before they learn which business is for sale. Your team keeps working, your customers keep coming, and your sale stays private until it closes.
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Request My ValuationYes. Non-medical personal-care agencies and Medicare-certified skilled home health are different businesses with different licensing, diligence, and multiples. Skilled agencies are more regulated and their certification is a significant, carefully transferred asset. We approach each accordingly.
A lot. Private-pay hours are generally valued more richly than government-payor hours, and diversified, well-documented revenue supports a stronger price. We present your payor mix and billable hours clearly.
Home-care licensing and any Medicare certification do not simply transfer, the buyer must qualify. We coordinate the timeline and work with your licensing consultant so operations and billing continue.
Martin Navarro is a California business broker, DRE #02372118, and a U.S. Marine Corps veteran. He is bilingual in English and Spanish and a member of the California Association of Business Brokers (CABB), the International Business Brokers Association (IBBA), ACG Los Angeles (Association for Corporate Growth), and the Santa Clarita Valley Chamber of Commerce. Gas stations, car washes, self-storage, and other businesses with real estate are a specialty within his full-service brokerage practice. Martin serves business owners across Los Angeles, the Inland Empire, Ventura, and Orange County, and throughout Southern California.
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