Considering Selling Your Home Care Agency? 5 Big Questions to Consider as an Owner
Owning a home care agency in 2022 isn’t what it was even 5 years ago. The landscape has changed with new tech innovations popping up every day and an ever-evolving relationship with medicare and Medicaid. As home care agencies continue to adjust through the evolving industry, we wanted to utilize this blog to help agency owners around the country better understand the world of mergers and acquisitions.
Owning and operating a home care agency has changed, but so has the reality of selling an agency. It’s not as complicated as it seems, and when you partner with a trusted management service organization, you can know you’re making decisions with industry leaders’ input in mind. Whether selling is something you’ve thought about since the beginning, or you’ve never considered it before, It’s always best to be prepared, so today we wanted to touch on a few high-level things to consider before selling.
Here are 5 things to think about if you are considering selling your home care agency in 2022.
What is Your Clinical Reputation?
This factor is clearly vital in the eyes of a buyer. How has your agency performed its clinical duties? Where are your outcomes currently? Are your clients satisfied? Are your clinical processes smooth? How is your clinical management? How are your service frequencies determined? How is the care coordination? What is your agency’s reputation in your region?
Anyone who is interested in purchasing your agency will need to know that your clinical process works, and works well.
How is Your Financial Wellness?
Financial stability and a keen understanding of your financial well-being are obviously other important factor to an agency buyer. What is your current accounts receivable? How far out are you on collections? Is all billing up-to-date? Has reimbursement been lost due to timely billing? How much? How often do you bill? These are all potential reasons why an individual may want to exit their agency, but also important factors that could increase the value of your agency.
Before selling, you will want to present the best financial snapshot possible to ensure your worth is accurate in the eyes of a buyer.
How is New Business?
How are your admissions? Is your current marketing plan working? How has your marketing strategy evolved over the years? What is your marketing budget? Where do you focus your targeted marketing strategy for new clients? Are your admissions trending up or down? With a growing industry comes competition.
Demonstrating that your client retention and recruiting strategy have a solid hold on your region can be a huge help in selling your agency, or partnering with a management service organization.
How Loyal is Your Team?
This is another important factor in your organization’s reputation. Beyond how well you take care of your patients, and how you grow your client base, how does your staff retention look? Do your clinicians stick around with your agency? What does turnover look like? Across the country, staffing has been a huge challenge for agency owners. Is your staffing stable?
Demonstrating a loyal team of dedicated employees could be extremely valuable but also intimidating to an owner when considering turning the agency over to new ownership.
Who is Your Leadership & What is Your Future Role if You Sell?
How involved in day-to-day operations are you as an owner of your agency? How would you leaving the company impact the way the agency is run? Do you feel you want to step away completely or continue working for the agency in some capacity?
How can your agency improve with the help of a management service organization?
Owning and operating a home care agency isn’t easy, and it isn’t getting any easier. It takes a lot of compassion and care to create a successful agency, and it may be intimidating to consider selling or relinquishing your duty. That’s why we work directly with owners to ensure that what they created and built over years is not only continued but enhanced. Whether you sell your agency and walk away, or stay on with the organization, we seek to partner with agencies that hold symmetry with our intrinsic values. If you or someone you know is interested in talking to one of our M/A specialists about the future of your agency, please don’t hesitate to reach out or email us. We are always available to help you better understand the landscape of home care mergers and acquisitions. Stay tuned on LinkedIn for more tips for agency owners!
Owners with any questions can speak directly with our team by visiting this link to get in touch!