Home Care EBITDA Multiples:
2026 Valuation Data
What buyers are actually paying for home care, home health, and hospice agencies, broken down by size, segment, and buyer type.
Last updated: February 2026 · Sources: Capstone Partners, Mertz Taggart, Scope Research, FOCUS Investment Banking
3x - 12x
EBITDA Range
~7x
Median Multiple
+22.4%
YoY Deal Volume
43
PE Deals in 2025
This page compiles EBITDA and SDE multiple data from actual home care, home health, and hospice transactions closed in 2024-2025, supplemented by market intelligence from leading healthcare M&A advisory firms. The data is organized by agency size, service segment, and buyer type to help you understand where your agency likely falls in the current market.
Home-based care M&A saw a significant rebound in 2025, with 105 transactions closed (Mertz Taggart) and a 22.4% increase in deal flow (Pitchbook). Private equity activity expanded 53.6% year-over-year, with 11 new platform investments and 32 add-on acquisitions (Capstone Partners). This increased buyer competition is supporting stable to expanding multiples for well-positioned agencies.
The Real Question These Tables Can't Answer
The gap between a 3x and a 12x multiple on a $1M EBITDA agency is $9 million. That's not a rounding error. It's the difference between a comfortable retirement and generational wealth.
Tables give you ranges. What they can't tell you is which end of the range your agency sits on. That depends on factors no spreadsheet captures: how your payer contracts are structured, whether your DON would stay through a transition, how your clinical documentation holds up under a quality of earnings review, and whether the right buyer is active in your market right now.
The data below is a starting point. Use it to calibrate your expectations, then get a real estimate based on your specific situation.
EBITDA Multiples by Agency Size
| EBITDA Range | SDE Multiple | EBITDA Multiple |
|---|---|---|
| Under $500K | 2.0x - 3.0x | N/A (SDE used) |
| $500K - $1M | 2.5x - 3.5x | 3.5x - 4.5x |
| $1M - $2M | 3.0x - 4.0x | 4.0x - 5.5x |
| $2M - $5M | - | 5.0x - 7.0x |
| $5M - $10M | - | 6.0x - 8.5x |
| $10M+ | - | 7.0x - 12.0x+ |
Sources: Scope Research (2025), Stoneridge Partners Home Health Index, Capstone Partners Home Care Sector Update (Feb 2026), FOCUS Investment Banking Healthcare Dashboard (2026). Ranges reflect observed transaction data and may vary by geography and deal structure.
EBITDA Multiples by Service Segment
The payer mix and service type are the single largest drivers of your multiple. Medicare-certified and hospice agencies command significantly higher multiples than private duty.
| Service Segment | EBITDA Range | Median |
|---|---|---|
| Private Duty (Non-Medical) | 3.0x - 5.0x | 4.0x |
| Medicare Home Health | 5.0x - 8.0x | 6.5x |
| Medicaid Waiver / HCBS | 3.5x - 6.0x | 4.5x |
| Hospice & Palliative | 8.0x - 12.5x | 9.5x |
| Pediatric Home Health | 5.0x - 8.0x | 6.0x |
| Behavioral Health / ABA | 7.0x - 10.0x | 8.0x |
Sources: Home Care Business Broker 2026 Healthcare M&A Report, HealthFMV Home Health Valuation Guide (2025), Mertz Taggart Q4 2025 Home-Based Care M&A Report. Hospice multiples reflect CON-state premiums where applicable.
What Moves Your Multiple Up or Down
Two agencies with identical EBITDA can sell at dramatically different multiples. These are the factors that separate a 4x from an 8x.
Premium Factors
Discount Factors
SDE vs. EBITDA: Which Applies to Your Agency?
The valuation metric used depends on your agency's size and operational maturity. Using the wrong metric can dramatically misrepresent your agency's value.
| SDE | EBITDA | |
|---|---|---|
| Best for | Owner-operated agencies | Agencies with management team |
| Revenue threshold | Under $3M | $3M+ |
| Includes owner salary? | Yes (added back) | No (management salary is expense) |
| Typical multiple range | 2.5x - 4.5x | 4.0x - 12.0x |
| Typical buyer | Individual operators, search funds | PE firms, strategic acquirers |
| Key transition trigger | When the agency can pass a state survey or audit without the owner being the primary contact | |
Who's Buying Home Care Agencies in 2026
PE activity in home care expanded 53.6% year-over-year in 2025, with 43 total deals. Understanding buyer types helps you position your agency for the right acquirer.
Private Equity Platforms
5x - 8x EBITDAPE firms building home care platforms through acquisition. They pay premium multiples for agencies that can serve as a foundation for regional consolidation.
PE Add-On Acquisitions
4x - 6x EBITDAExisting PE-backed platforms acquiring smaller agencies to expand geography, add service lines, or increase census. Lower multiples but faster closes.
Public Strategic Acquirers
6x - 10x EBITDAPublicly traded home health companies acquiring to grow market share and demonstrate growth to investors. Pay competitive multiples for quality assets.
Hospital Systems & Health Plans
5x - 8x EBITDAHealth systems vertically integrating post-acute care to reduce readmissions and capture value-based care savings. Increasingly active in 2025-2026.
Individual / Search Fund Buyers
3x - 5x EBITDAEntrepreneurs and search fund operators acquiring single agencies as owner-operators. Typically target smaller agencies with SDE-based valuations.
Regional Variations: State-by-State Guides
Multiples vary significantly by state due to Medicaid reimbursement rates, Certificate of Need laws, competitive density, and regulatory environment. Explore your state's specific market conditions.
Sources
- Capstone Partners, "Home Care Sector Update," February 2026. capstonepartners.com
- Mertz Taggart, "Q4 2025 Home-Based Care M&A Report," January 2026. mertztaggart.com
- Home Care Business Broker, "2026 Healthcare M&A Report: Valuation Multiples," January 2026. homecarebusinessbroker.com
- Scope Research, "Home Health Valuation Multiples and M&A Trends 2025." scoperesearch.co
- FOCUS Investment Banking, "Healthcare EBITDA Multiples: 2026 Dashboard." focusbankers.com
- Stoneridge Partners, "Home Health Index: 2026 January Update." stoneridgepartners.com
- Pitchbook, Home-Based Care Deal Flow Data, 2025.
- PESP (Private Equity Stakeholder Project), "PE Healthcare Deals: 2025 in Review," February 2026. pestakeholder.org