The home health care and hospice industry is expected to continue its fast growth rate resulting in business owners reviewing when it may be the best time to sell.
The hospice and home health care industry is expected to grow strongly over the foreseeable future, driven by powerful demographic trends, including a rising elderly population, longer life spans and more chronic and age-related illnesses.
A must read for Home Healthcare and Hospice Agency Owners. We examine the key factors that have come together like a perfect storm to create the major industry consolidation currently underway. A unique window of opportunity now exists where eager buyers and motivated sellers can complete win/win deals.
Private equity firms and strategic investors are interested in acquiring agencies to expand their home healthcare and hospice businesses at the same time sellers are dealing with the operational challenges created by the recent shift to the Patient Driven Grouping Model. This has led to a record level of deal activity during the first eight months of 2021.
All types of medical practices have been consolidating over the past 10+ years. While transaction volume declined in 2020 activity accelerated. 2021 will be a record year for completed transactions.
2021 projects that private equity investment in behavioral health will reach an all-time high as investors seek to cash in on the growing demand for therapeutic services.
The behavioral health market is highly fragmented which is always a catalyst for consolidation. COVID-19 added to that and created an increased opportunity in M&A activity.
We think about private equity-backed consolidations as part of a lifecycle. Like most business cycles, it starts out with pioneering that accelerates through further adoption.
