$6.3 Million Home Health And Hospice Agency

This Medicare-certified, CHAP and state-accredited Home Health and Hospice provider was licensed to serve the Texas State Department of Health and Human Services Region 6 in the Greater Houston Area.

In 2019, Owner and Operator, Gary S., contacted Mike Moran regarding a valuation of his quickly growing agency.

Client

  • $6.35 Million revenue Hospice and Home Health agency with an adj. EBITDA margin of 15%.
  • Average daily census of 160 home health patients and 65 hospice patients with an ALOS of 82 days.
  • Owner lived out of state and desired to focus his attention on business ventures closer to home, resulting in the sale of a turn-key operation with management in place.

Objective

  • Ensure the value of the company did not lessen despite the economic effects of COVID-19.
  • Help navigate through the nuances of multiple PPP loans and other ancillary challenges potentially hindering the sale.
  • Find an experienced strategic buyer that would carry out the legacy of the business post acquisition and conduct due diligence efficiently despite the pandemic.

Result

  • The company sold to an emerging multi state Hospice and Home Health provider for terms solidified in the LOI and at a premium valuation.

  • With the support of good legal counsel, we were able to navigate through various challenges uncommon in most deals.

  • After a short transitional period, our client was able to pursue business endeavors closer to home.

“Mike was very engaging, knowledgeable, and continued by my side through the entire process. His depth of experience provided me with a level of comfort as we navigated through each step of the acquisition process. I highly recommend Mike to others considering divesting.”

Gary S.
Former Owner

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