An Illinois hospice agency sold for $5M at 5x EBITDA. Hospice buyers pay for predictable census, clean compliance and a clinical team that stays through the transition, and they check all three before they talk price.
Census trend and length of stay drive revenue quality. Buyers look for steady admissions and length of stay patterns that are consistent with clinical eligibility.
Buyers review the aggregate cap position for recent years. Agencies with no cap liability, or a clear plan for it, avoid price adjustments late in the deal.
Recent survey results and any payer audits are reviewed early. Hospice is closely watched by regulators, so a clean record carries real value.
Relationships with hospitals, physicians, skilled nursing and assisted living facilities that belong to the agency, not only to the owner.
We start with a valuation grounded in closed deals, then recast the financials and build the confidential information memorandum buyers will review.
The business is presented anonymously to qualified buyers from our network of 7,950+ and on major marketplaces. Buyers sign an NDA before they learn the name.
We run several buyers through the process at the same time, so letters of intent arrive close together and price is set by competition.
We manage diligence requests, keep the deal on schedule and work with the owner's attorney and CPA through closing.
Hospice agencies are usually valued on a multiple of EBITDA. This Illinois hospice sold at 5x EBITDA, and healthcare deals on our record range from 4x to 6x. Census trend, cap exposure, compliance history and staffing depth move the multiple most.
Private equity backed hospice and home health platforms, regional operators adding markets, and healthcare operators moving into hospice. Buyers with existing hospice operations often pay more because they can absorb back-office costs.
Most of our transactions close in 6 to 9 months, and most clients receive a letter of intent within 60 days. Hospice sales can run longer because Medicare change of ownership filings and state licensing steps add time, and some states require approval before closing.
Unresolved cap liability, open survey findings, missing documentation for long-stay patients and referral relationships that sit with the owner. Each one is easier to fix before going to market than during diligence.
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