Home Health Agency Valuation Multiples (2026)
Medicare-certified home health agencies trade well above non-certified peers. Strong star ratings + payer diversification + caregiver retention compound to 1.6× revenue and 7× EBITDA in deals with PE roll-ups.
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Pick your industry and enter revenue + EBITDA / SDE. We'll triangulate three valuation methods and show what buyers typically pay for businesses like yours.
Premium drivers
- ↑Medicare certification with strong star ratings
- ↑Diverse payer mix
- ↑Caregiver retention > 70% YoY
- ↑Geographic density / multiple territories
Discount drivers
- ↓Single-payer concentration
- ↓Caregiver turnover > 50%
- ↓Pending CMS audit findings
- ↓License-only buyer pool
Who buys home health agency?
Regional home health platform, PE-backed roll-up (Compassus, Aveanna), or a Medicare-licensed strategic
Typical timeline + revenue band
- Days to close: 120–240
- Revenue band these multiples apply to: $1.00M–$5.00M
- NAICS: 621610 (Healthcare)
5 levers that lift your Home Health Agency multiple by 30-50%
- 1Lock in recurring revenueConvert the top of your home health agency revenue stack into multi-year contracts, retainers, or auto-renewing subscriptions. Buyers pay 25-40% more for revenue they don't have to re-win every quarter.
- 2De-risk customer concentrationAim for no single customer above 15% of revenue. If you have a > 25% client, get them on a multi-year master services agreement before going to market.
- 3Document the business out of the ownerRegional home health platform, PE-backed roll-up (Compassus, Aveanna), or a Medicare-licensed strategic will discount aggressively for any function that lives in the owner's head — sales, key vendor relationships, pricing, hiring. Run the next 90 days like the owner is on a 6-week vacation.
- 4Clean up the financialsGet a Quality of Earnings-ready trailing 12 months: GAAP-aligned, owner add-backs documented, no commingled personal expenses. This alone moves the multiple 0.5-1.0× upward in this category.
- 5Match the deal to the right buyer poolPE-backed roll-ups, strategic acquirers, and ETA buyers compete on different terms. List with someone who has run a process for home health agency acquisitions — generic SMB brokers will leave 20%+ on the table.
FAQ — Home Health Agency valuations
What's a typical home health agency valuation multiple?▾
Typical home health agency valuations land near 3× SDE, 5.5× EBITDA, or 1.2× revenue. Strong operators reach 3.8× SDE / 7× EBITDA / 1.6× revenue, while weaker operators stay closer to 2.4× SDE / 4.5× EBITDA / 0.9× revenue.
How long does it take to sell a home health agency?▾
Most home health agency deals close in 120–240 days from listing. Strong operators with clean financials and a documented buyer pool close on the lower end.
Who buys a home health agency business?▾
Regional home health platform, PE-backed roll-up (Compassus, Aveanna), or a Medicare-licensed strategic
What pushes a home health agency valuation to the high end?▾
Medicare certification with strong star ratings. Diverse payer mix. Caregiver retention > 70% YoY. Geographic density / multiple territories.
What forces a discount when selling a home health agency?▾
Single-payer concentration. Caregiver turnover > 50%. Pending CMS audit findings. License-only buyer pool.