Yes. This type of agency is considered a Registry. We have been unsuccessful in selling agencies who have a majority of contracted staff given the costs by the buyer to convert your employees into W-2. However, if you are considering a sale, we recommend that you convert your staff to W-2 employees prior to engaging [...]
In our experience, franchises can only be sold if there is a clear opt out provision in your franchisor agreement. If you are interested in selling and would like to know your options, please have your franchisor agreement available when speaking with us.
Due Diligence is can be very onerous. A buyer will want a clear picture of your company and services during the diligence process which will consist of Organizational, Regulatory, Clinical, Financial, and Legal diligence requests. We establish a secure data room to house the transfer of this data as well as act as deal managers, [...]
There are variety of factors that can influence the valuation of a company. One of the primary ways in which the market values Home Health companies is on a multiple of their adjusted EBITDA (insert link to EBITDA), or true cash flow. The additional factors that can influence a valuation are geography, payor mix, demographics, [...]
In general, PDGM has delayed reimbursement and decreased profitability. A year-over-year analysis of you profit and loss (income statement) should accentuate where PDGM has reduced revenue and profit. The value of a company is usually tied to profitability. If this drops so will the value of you company.
I own a private pay home care (private duty) business and the majority of my staff are 1099 contractors. Will this affect my value.Greg Banig2020-08-26T11:49:34+00:00
Yes. This is a registry and we have not heard of any successful transactions of these types of agencies. They do cash flow well, but in order to sell you will need to convert caregiver staff to employees (W-2). Or accept a discounted price from the buyer who will need to make the conversion.