How much is my home care agency worth?
Home care agencies typically sell for 2 to 6 times earnings. Size matters, but caregiver retention, payer mix, and how much of the agency runs without the owner usually matter more.
Typical ranges by size
These are current market ranges, not a quote for your agency.
- Under 1,000 billable hours a week: about 2.0x to 3.0x SDE. Usually owner-operated, often sold to an individual buyer.
- 1,000 to 3,000 hours a week: about 3.0x to 4.5x adjusted EBITDA. Regional operators start to compete.
- Above 3,000 hours a week: about 4.5x to 6.0x adjusted EBITDA, especially with a stable Medicaid waiver or managed care book.
Why two agencies with the same revenue sell for different prices
- Caregiver turnover: above-market turnover means the buyer budgets for recruiting they did not plan on.
- Payer mix: private pay carries a higher margin. Medicaid waiver hours carry stability. A blend tends to price best.
- Margin per hour: revenue tells a buyer little until wages and payroll taxes come out.
- Client concentration: a handful of high-hour clients holding a third of revenue is a risk buyers price.
- Owner involvement: an agency where office staff run scheduling, billing, and payroll is worth more than one where the owner does it all.
Licensed agencies with no clients
A licensed home care agency that has never operated is priced on what it saves a buyer: the entity, license, NPI, and setup work. These usually sell for a modest flat price rather than a multiple, and the value depends heavily on the state and how hard the license is to get.
Get a number for your agency
A free, confidential valuation from Riverbluff uses your hours, payer mix, and three years of financials, normalized the way a buyer will. It takes about one business day and does not commit you to selling.