Business Summary

M&A Healthcare Advisors is pleased to present a CHAP accredited, Medicare and Medicaid (Medi-Cal) certified Home Health agency based in one of the most densely populated and affluent regions of California. The Company was founded in 2015 and received their Medicare license in 2016. They provide a variety of services including Skilled Nursing, Home Health Aide, Social Work, Physical, Occupational, and Speech Therapy, as well as the full range of assistance with Activities of Daily Living (ADL).

In 2019, the company generated gross revenues of $6.25 million and in 2020, they grew to approximately $9.2 million of annualized revenue. In 2021, for the 8 months of January - August, the company generated $7.5 million of revenue. By year end, they are estimated to generate approximately $11.217 million in revenue with an adjusted EBITDA margin of $3.765 million (33.6%), which does not include an allocation for add-backs. Over the 3-year period from 2018 - 2021 (YE Estimate), the company’s compound annual growth rate (CAGR) is over 55%. In each of the last 4 years, the Company’s adjusted EBITDA margin has been at or above 30%. Their higher-than-average margins are attributed to their well-established hiring practices, operational efficiencies, and contracts with a Managed Care Organization (MCO) payor. The MCO contract is with one of largest HMOs in the country, who consistently utilizes third-party home health partners to adequately manage their large and growing population of home-based patients receiving all forms of clinical care.

Over 95% of the company’s reimbursement derives from this MCO contract and approximately 5% comes from traditional Medicare. It is estimated by year end 2021, the company will service over 2,500 patients and conduct over 50,000 patient visits. The Company expects that new ownership will continue to consistently grow its MCO patient base and will see substantial growth with Medicare patients, if focus on servicing these patients is applied.

All employees are expected to remain, including key management personnel. The sellers are not involved in the day-to-day clinical operations. They are willing to assist during a transition period but desire a full exit from the operations shortly after completing the sale.