Most home care agency owners have a number in their head. What they think their business is worth. But that number is almost always wrong.
Some overestimate, using revenue multiples they heard at a conference. Others underestimate, not realizing the value of their client relationships, caregiver retention rates, and recurring revenue streams.
The gap between perceived value and actual market value is where owners lose the most money. This guide closes that gap.
Based on a $500K EBITDA agency. Actual results vary.
2025–2026 multiples are at multi-year highs driven by PE consolidation. These conditions will not last indefinitely.
Under $1M revenue. Limited buyer pool, owner-dependent operations.
$1M–$5M revenue. Strong management team, diversified payer mix, documented SOPs.
$5M+ revenue. Multi-location, Medicaid/Medicare certified, strong growth trajectory.
Sources: S&P Global, Capstone Partners, Home Health Care News M&A Reports.
This guide will teach you how valuations work, what drives multiples, and how to prepare. But it can't tell you what your specific agency is worth today, or which improvements would have the biggest impact on your sale price.
Buyers evaluate these six categories when determining what they'll pay. Weakness in any one area can reduce your multiple by 0.5x–1.5x.
Adjusted EBITDA, revenue trends, margin stability, and payer mix diversification.
Caregiver retention rates, management depth, and owner dependency level.
Written processes, compliance records, training manuals, and operational playbooks.
Client concentration, referral relationships, contract terms, and retention rates.
Revenue growth rate, market opportunity, expansion capability, and scalability.
Licensing status, insurance coverage, regulatory compliance, and litigation history.
Revenue tells buyers how big you are. EBITDA tells them what they're actually buying. Owners who don't recast their financials leave the biggest dollars on the table.
If the business can't run without you, buyers see risk, and they price that risk into the deal. Building a management team is the single highest-ROI exit prep activity.
A single buyer has no incentive to pay top dollar. Creating competitive tension between multiple qualified buyers is how you maximize price.
Deals fall apart in due diligence more often than in negotiation. Missing documents, compliance gaps, and disorganized records kill deals or crater prices.
A $3M offer with 60% in earnouts is not the same as a $2.5M all-cash offer. Understanding seller notes, earnouts, and working capital adjustments is critical.
"I thought I knew what my agency was worth. The scanner showed me I was undervaluing it by almost $400K, and more importantly, it showed me exactly what to fix to get even more."
- Billy Baumann, Founder, Exit Lab
60+ Advisory Network Deals