On My Care Home Health

The ownership team, consisting of a husband (CEO) and wife (DPCS), contacted us out of a desire to understand their options for a full exit to focus on their family and young children.

CHAP-accredited, Medicare and Medicaid (Medi-Cal) certified Home Health agency located in the San Francisco Bay Area with 2,500 total patients, 51,000 total visits, and over 80 total caregivers.

Client

  • Very lucrative payor contract, however, high concentration risk. Virtually no adjustments to EBITDA and fully detailed books and records.
  • Developed systems and automations 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 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.

“We started our company with just the two of us, husband and wife, and grew it into a mid-sized Home Health agency. We love our company and everyone that works here like no other, but we were also raising two small children. Our company has grown into a well-recognized firm and with growth came challenges of commitment between family and business. We realized we were unable to truly focus on our family, which needed to be a priority for us at this stage in our lives. We also wanted to maximize the value of our company with a buyer who would share values of excellent patient care with the ideal culture for our legacy caregiving staff. The team at M&A Healthcare Advisors [MAHA] was the perfect complement for us as a seller. They matched our work ethic and quick responsiveness. They were supportive, taking on all sales process tasks which did not require my involvement, allowing me to focus on my operations. Although the tangible work product was excellent, what was most impressive to me was their technical consistency and emotional fortitude through a very arduous due diligence process. There were many evenings we would spend on the phone assessing that day’s events and adjusting our approach for the days to come. MAHA introduced me to our transactional attorneys as well, all while working side-by-side with the legal team to ensure that every aspect of the purchase agreement was as good as it could be. In the end, after an eight-month process, all parties walked away with a mutually beneficial deal. I thank that, in large part, to the efforts of MAHA.”

Hans Gill, CEO
On My Care Home Health

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