Not much. From a transactional standpoint, the market remains very consistent and active. I/DD service businesses continue to sell at a steady pace and the segment has become a major focus for our firm. We have an extremely robust network of national I/DD providers, who regularly look at our deal flow. Additionally, interest from Private [...]
Given the number of transactions, the inventory for coveted I/DD assets has shrunk, which makes it a great time to sell. Strategic companies like ResCare (now BrightSpring), the Mentor Network (Civitas), and others alike are increasingly looking for viable businesses to acquire. I mentioned in my last response that Private Equity interest is strong, especially [...]
For companies we’ve sold, multiples range anywhere from 3x-6x adjusted net income/adjusted EBITDA. This includes I/DD Group Home, Foster Care, Adoption, Respite, Autism, Day Programs, and other I/DD specialty businesses. Valuations of I/DD service companies are based on a multiple of adjusted EBITDA and in some instances, as a percentage of revenue. Strategic companies usually [...]
With any business, growing top line and controlling costs is a sure way to drive valuation. This could mean expanding your provider services, growing beyond your current geography, or cutting costs as to where it won’t affect the consumer being cared for. Specific state programs and select contracts can also bring additional value to a [...]
The process of selling a business is a massive undertaking, especially when trying to maintain the day-to-day workload that goes into running a company. Whether it’s our firm or another, an experienced M&A advisor is integral to selling a company, especially during due diligence which is often a very complex and stressful time. I’ve come [...]
