Home health and hospice M&A activity soars

BVWireIssue #194-1
November 7, 2018

healthcare, healthcare appraisal, healthcare multiples, multiple

For three quarters in a row, there have been at least 20 publicly announced acquisitions of home health or hospice companies, a much higher quarterly volume than during most of 2017, according to new data from HealthCareMandA.com (Irving Levin Associates). Private equity-backed home health companies were the most prolific buyers in the third quarter. During a recent BVR webinar, healthcare valuation experts Darcy Devine (Buckhead FMV) and Will Hamilton (Veralon) explained that hospice firms (that also often include home health) enjoy operating margins of 8% to 9% compared to the smaller margins of most other healthcare entities, which makes them attractive M&A targets.
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