Selling a home care agency? Work with an advisor who has run one.
In 2018 I bought a Comfort Keepers agency in Los Angeles. I grew it through the pandemic to nearly 1,000 caregivers serving more than 300 seniors, and sold it at a 274% increase in value. Now I help agency owners prepare for and run their own exit.
Home care is a people business. So is selling one.
I have recruited caregivers on a Friday night, covered a shift when someone called out, kept referral sources loyal and made payroll while waiting on a VA payment. I know which numbers a buyer trusts and which ones make them nervous.
That operator view shapes how I prepare an agency for sale: we clean up the P&L, document the caregiver engine, map licensing and contracts, and tell your story the way a buyer who knows home care will read it.
I focus on non medical home care: private duty agencies and franchise territories, from single location owners to multi territory groups.
The numbers every home care buyer will ask for.
Billable hours trend
Weekly billable hours over 12 to 24 months is the first chart a buyer asks for. Steady growth beats a single strong quarter.
Caregiver turnover
Buyers compare your 30, 60, 90 day and annual turnover to an industry median near 75%. Lower turnover means hours you can actually staff.
Bill rate to pay rate spread
Your hourly bill rate minus caregiver wages, payroll taxes and workers' comp. It drives gross margin and shows pricing power.
Payer mix
Private pay, long term care insurance, VA and Medicaid each carry different margins, payment speed and transfer risk.
Referral sources
Hospitals, case managers, senior living communities, VA and online leads. Diversified sources that do not depend on you are worth more.
Client retention
Average length of stay and hours per client per week show how sticky your revenue is.
Who runs the day
An administrator or care manager who handles scheduling and families means the business does not walk out the door with you.
Clean data
Scheduling and billing reports from WellSky, AxisCare or a similar system that tie to your P&L and tax returns.
Compliance file
Background checks, aide registration, training records, TB clearances and client care plans ready for diligence.
Turnover benchmark: Activated Insights data via Home Health Care News.
Where home care deals fall apart, and how I prevent it.
Each of these can delay or kill a closing. I map them before we go to market, not after a buyer finds them.
License timing
A buyer without an approved license cannot close, and the SBA lender will not fund until it is approved.
Franchisor approval
Transfer fees, buyer qualification, training and the remaining term all sit on the critical path.
Payer contracts
VA and other contracts that cannot be assigned can force a stock sale and change the whole structure.
Lender rules
SBA seller notes on full standby, equity injection and debt service coverage shape what a buyer can pay.
Margin that looks wrong
Fees and insurance booked as cost of services make a healthy agency look thin.
Wage and hour exposure
Overtime, travel time and caregiver classification are checked closely in diligence, especially in California.
How home care agencies are valued.
Small agencies are priced as a multiple of seller's discretionary earnings (SDE). Larger agencies with a management team are priced on adjusted EBITDA. The multiple moves with payer mix, turnover, growth and how much the business depends on you.
- Small home care sales from 2021 to 2025: median about 3.0x SDE and 0.63x revenue (BizBuySell)
- Single territory franchise, $300K to $700K SDE: published range 3x to 5x SDE (CT Acquisitions)
- Strong private pay agency, $500K to $1.5M SDE: published range 4x to 6x SDE (CT Acquisitions)
- Regional and scaled personal care platforms: published ranges of 5x to 10x EBITDA (FOCUS Investment Banking)
Sources: BizBuySell, CT Acquisitions, FOCUS. Ranges are published by third parties and are not a valuation of your business.
Today's buyers in home care.
First time owners using SBA financing, existing agency owners adding territory, franchise groups, regional add on acquirers and private equity backed platforms. Iconic's reach lets us bring several of these to the table at once, so you are not negotiating against yourself.
Free saleability assessment
See your likely value range, how buyers will read your numbers and what to fix first. Confidential and free.
Questions home care owners ask me.
General information, not legal or tax advice. Your licensing and contract questions should also go to your attorney and CPA.
What multiple will my home care agency sell for?
It depends on size, payer mix and how well the business runs without you. Small agencies sold through business brokers from 2021 to 2025 went for a median of about 3.0 times SDE. Advisors publish ranges of roughly 3 to 5 times SDE for a single territory franchise and 4 to 6 times SDE for strong private pay agencies, while larger platforms are priced on EBITDA. A free assessment gives you a range based on your own numbers.
Should my agency be valued on SDE or EBITDA?
Most owner operated agencies are valued on seller's discretionary earnings (SDE), which adds back the owner's salary and personal expenses. Once an agency has a management team and earnings above roughly $1 million, buyers usually switch to adjusted EBITDA, which assumes a paid general manager.
Can my home care license transfer to a buyer?
Often not automatically. Many home care licenses and some payer contracts are issued to the licensee and may require a new application, a change of ownership filing or a stock sale instead of an asset sale. In California, buyers typically apply for their own Home Care Organization license through the Department of Social Services, and SBA lenders generally will not fund until it is approved, so the application should start as soon as the letter of intent is signed.
I own a franchise. Does that change the sale?
Yes. The franchisor usually has to approve the buyer, charges a transfer fee, may require training, and the remaining term of your franchise agreement and territory matter to value. I plan the franchisor's role into the timeline from day one.
What happens to my VA, Medicaid or insurance contracts?
Some payer contracts cannot be assigned to a new owner, and some payers are no longer issuing new contracts. If a contract is a meaningful share of revenue, a stock sale may be the only way to keep it, and that changes taxes, liability and how the buyer finances the deal. We review every contract before going to market.
Why does my gross margin look low to buyers?
Often it is classification, not performance. Royalties, marketing fees, workers' compensation and background check costs are sometimes booked as cost of services. Buyers compare your margin to industry benchmarks, so we restate the P&L consistently with your tax return before anyone sees it.
Will my caregivers and clients stay after the sale?
They usually do when the transition is planned. Buyers look for an office manager or care coordinator who keeps daily relationships steady, and for a communication plan that tells caregivers and clients what changes and what does not.
How long does selling a home care agency take?
Iconic's published median time to close is 5.2 months. Home care can take longer when licensing, franchisor approval or payer contracts are involved, which is why I map those steps before we list.
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