“When considering whether your agency is ready to sell, try taking yourself out of the equation. When looking at agencies to buy, it’s not just hands-on leadership that catches the eye of buyers, but hands-off leadership, as well,” says Mike Moran, co-founder of M&A Healthcare Advisors of Calabasas, Calif.
Home Health Line August 15, 2022
Proposed cuts to Medicare payments next year, with more cuts possible in the near future, may impact the M&A market down the road. But, for now, demand for home health agencies remains high.
"The market continues to thrive," says Jack Eskenazi Jr., managing partner of Healthcare Advisory Partners, based in Soquel, Calif. "Agency owners I speak with are being bombarded with sales calls, so they know it’s a sellers’ market," he says.
"CMS’ plan for a 4.2% cut in payments for 2023 could impact sales in the future," says Cory Mertz, managing partner with Mertz Taggart of Fort Myers, Fla.
"It will impact deals and deal volume as some would-be sellers will be in a wait-and-see mode,” Mertz says. “For deals in the works, it can certainly create a valuation gap between the buyer and seller that will need to be worked through. Anytime there is uncertainty in the marketplace, valuation gaps occur."
Take yourself out of the equation
When considering whether your agency is ready to sell, try taking yourself out of the equation.
"When looking at agencies to buy, it’s not just hands-on leadership that catches the eye of buyers, but hands-off leadership, as well," says Mike Moran, co-founder of M&A Healthcare Advisors of Calabasas, Calif.