$29.5 Million Primary Home Care, Hospice, And Home Health Agency

These Home Health and Hospice agencies held Medicaid and Medicare certifications across a total of 12 locations, serving 73 counties in and around the Greater San Antonio area.

In 2019, the Interim CFO, Judd H., contacted Mike Moran about identifying a buyer that could solidify and expand the company’s footprint in the Texas market while providing a premium offer for the owner to transition to new endeavors.

Client

$29 Million revenue agency with an adj. EBITDA margin of 17%.
Service type breakdown of 89% Primary Home Care, 10% Home Health, and 1% Hospice.
The Companies had a combined average daily census of 1750 Primary Home Care patients, 159 Home Health patients, and 9 Hospice patients.

Objective

Identify a private equity group that could acquire the business for a premium.
Ensure $4 million of PPP Loans and other related COVID stimulus had favorable terms laid out in the purchase agreement.
Enable our client to retire shortly after the company was acquired and ensure the incumbent staff remained intact post acquisition.

Result

The company was sold for over 6x adj. EBITDA with a seamless transition thatmaintained all vital management and referral sources.
After ample negotiation, our client was content with how the PPP loan and other stimulus monies were treated.
The company was acquired by a private equity group looking for a platform within the state of Texas.

“Mike and Mark went above and beyond for our needs. They identified the ideal buyer for the agency and were patient, responsive, and timely with their diligence process management. This transaction would not have happened without their involvement.”

Judd H., Interim CFO
Greater San Antonio area Primary Home Care, Hospice, and Home Health Agency

Questions about the sale process or current multiples within your unique healthcare segment?