$3.7 Million Hospice And Home Health Agency

This 15-year-old agency maintained Medicare certification and provided Home Health and Hospice services to the Northern Utah area.

In 2020, the owner, Lee V., approached Mike Moran with the intent to transition his agency to new ownership, enabling him to retire and focus on other business endeavors.

Client

Very lucrative payor contract, however, high concentration risk. Virtually no adjustments to EBITDA and fully detailed books and records
Developed systems and automation to mitigate employment liability and increase efficiency
Husband (CEO)-and-wife (DPCS) ownership team that were involved in all aspects of the day-to-day operations
Entrepreneurial when it came to identifying areas in need of improvement and implementation of value-add initiatives

Objective

Ensure the continuation of the payor contract and above-market average profitability
Full exit for ownership to a seasoned operator who would continue the positive culture of performance with the caregiving staff
Highest valuation with minimal carry-on liability

Result

Assisted with the strategic development of the business into an operation which could sell under high standards of the sellers.
Based on a strong collaboration with the seller, we left no stone unturned in the production of diligence materials and development of the information memorandum prior to going to market.
Generated 6 offers with above-average multiples, allowing us to focus on the buyer who represented the best fit—a private equity sponsor with a strategic portfolio company, representing a perfect synergy.
Worked closely with all parties, including transactional attorneys and CPAs, to arrive at an outcome that exceeded our clients’ expectations.

“Mike was a consummate pro. He exceeded my expectations and remained diligent from start to finish.”

Lee V.
Former Owner and Operator

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