By Stephen Tweed
Have you been thinking about selling your home care company?
Have you considered growing your company by acquiring another home care company?
Merger and Acquisition activity in home care was up last year compared to 2022. According to
the recent Q4 2023 Home-Based Care M&A Report from Mertz-Taggart, there were 61 home
care transactions in 2023, compared to 52 transactions in 2022.
This data supports a trend we have been tracking over the past few years where we see the
home care industry moving into consolidation. Larger home care companies are growing by
acquiring smaller companies. We are tracking about a dozen very large home care companies
that are backed by Private Equity Groups that are growing through acquisition. We have also
seen a number of smaller privately held home care companies who have expanded their
geographic territory and grown their annual revenue by acquiring other companies.
Home Care CEO Forum Affected by Acquisitions
The Home Care CEO Forum has been heavily affected by the M&A process over the past three
years. During a 24-month period, we saw ten of our member companies acquired by larger
companies. We also saw four of our member companies make acquisitions that enabled them
to grow into new markets. We had three of the members of our Top 5% Group who had to leave
the group because they acquired companies in the marketplace of other members. (A core
principle of our mastermind groups is that no member of the group can compete with any other
member of the same group.) We have had two more of our members sell their businesses in
Home Care Leaders Stay on Top of M&A Activity
We’ve observed that owners and CEOs of home care companies in the top tier of our industry
are taking time to study the M&A environment across the country and in their local markets.
Our members want to know what their company is worth if they should want to sell, and they
pay attention to M&A activity in their local market. Our member regularly inquire about home
care company valuations so they can consider both sales and acquisitions when the timing is
Get a FREE Valuation of Your Home Care Company
Our friends and Resource Partners at Mertz-Taggart have a process where they will provide
you with a free estimate of the value of your home care company. If you are considering a sale
of your company at some time in the next five years, now is the time to know what your
company is worth, and the things you can do to increase the value.
Reach out to Mertz-Taggart and talk with Cory Mertz or Bruce Vanderlaan at Mertz-Taggart.com