Home-Based Care Deals No Longer End at the Closing Table
Industry leaders say home-based care M&A is shifting toward valuing sustainable organic growth over EBITDA and structuring sellers as ongoing operating partners and equity owners.
Key Facts
- Affected providers
- Home Health
Home-based care mergers and acquisitions are changing both in how buyers value companies and in how buyers and sellers work together after a deal closes, according to executives on a Home Health Care News FUTURE conference panel.
Industry leaders said EBITDA alone no longer defines a home-based care company's worth, with sustainable organic growth increasingly the key metric. A Place At Home COO Dustin Distefano said operators that show organic growth, infrastructure, and team building hold value, while Aveanna Healthcare CEO Jeff Shaner said he would favor a slightly lower-growing but higher-quality business over a faster-growing one.
Buyers are also more selective and factor leadership cohesion and culture into valuation. Bill Mixon, executive partner at Waud Capital, said investors prioritize alignment with their investment thesis and evaluate team cohesion early in the process.
The buyer-seller relationship is also shifting: rather than collecting proceeds and stepping away, sellers are increasingly retained as operating partners and equity owners. Aveanna said it makes sellers equity owners and leaders in acquired operations, while A Place At Home structures joint ventures that let franchise owners retain minority ownership and continue as general managers.
Distefano, co-founder of A Place At Home, was named COO of franchise operations at Dovida North America following the company's acquisition, cited as a live example of sellers remaining involved after a deal.
Sources & References
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