Private equity firms are buying home care agencies right now, and more of their deals are first purchases, where a firm buys one agency to build a whole new company around it. In the second quarter of 2026, six of the eight non medical home care deals that closed went to private equity, either as a new platform or as an add on to a company a firm already owns, according to Mertz Taggart's quarterly home based care report.
If you own an agency, it helps to know who is on the other side of the table. It changes what a buyer will ask for, what they will pay for, and how much time you need to get ready.
What the latest deals show
The report covered deals that closed from April through June 2026. Non medical home care tied hospice for the most closed transactions in all of home based care, with eight each.
Here is who bought those eight home care agencies. Three were platform investments, meaning a private equity firm bought a first agency to build a new company around. Three were add ons, where a company already backed by a private equity firm bought another agency to grow. One went to a public company, and one went to an independent buyer.
What stood out to me was the bigger picture. Across all of home based care that quarter, new platform investments outnumbered add ons. The report called it a reversal of the add on heavy pattern of recent years.
Why a first purchase changes what a buyer wants
A buyer starting from scratch is not plugging your agency into an office they already run. Your agency becomes the foundation they build on, so they want one that is already established, with good systems and a strong reputation in the community.
In practice, that means a buyer will look hard at how scheduling works, how you recruit and keep caregivers, where your clients and referrals come from, and whether the office can run without you on the phone all day. If those pieces live in your head instead of in a process, the buyer has to rebuild them, and that shows up in the price and the terms.
Not every buyer is a fund, either. When I sold my own senior care business, the buyer was a neighboring franchise owner who already knew the market. Strategic and independent buyers are still part of this market, and they ask many of the same questions.
Buyers are active, but selective
Here is the catch. Total deals across home based care fell from 27 in the first quarter of 2026 to 16 in the second. Buyers are out there, but with fewer deals getting done, they can afford to be picky.
The agencies that sell are the ones that were ready before a buyer ever called. That usually means clean financials and tax returns that tell the same story, a clear picture of caregiver retention and payer mix, and a team that handles the day to day without the owner in the middle of everything. If you want a deeper look at how buyers view agencies like yours, my home care business page covers what I see in the market.
Start before anyone calls
Getting ready takes longer than most owners expect. It took me longer than I expected when I sold. The good news is that the work that makes an agency attractive to a private equity firm also makes it easier to run today, whether you sell next year or ten years from now.
So save this for when you start planning your exit, and if you know an agency owner who keeps getting calls from buyers, send it their way.
Ready to talk it through? Talk with me about selling. No cost, no obligation.
Read the transcript
Private equity is buying home care agencies. Here's what they're looking for. If you own an agency, it helps to know who's on the other side of the table. It changes the way you get ready.
A recent industry report looked at deals from April through June. Non medical home care sales were at the top of that list. Of the eight home care deals, most buyers were from private equity firms. Three bought an agency to add to a company they already own. Three bought a first agency to build a new company around, and the last two went to a public company and an independent buyer.
But here's what stood out. Across all care at home, more of these deals were first purchases than add ons for the first time in years.
A buyer starting from scratch wants an agency that's already established with a good system and strong reputation. Now here's the catch. Buyers are active, but they're selective. Total deals across care at home fell from 27 the quarter before to just 16. The agencies that sell are the ones that were ready before a buyer even called. So save this for when you start planning your next exit.
