What is the average sale price of a home health agency?

There is no single 'average' price for a home health agency because size, payer mix, and licensure vary widely; the right way to estimate value is earnings times a market multiple. Established, professionally managed agencies are valued on EBITDA at about 4.5x-8.5x, while smaller owner-operated agencies are valued on SDE at roughly 2.5x-5.5x. A small private-pay agency and a larger Medicare-certified one can sell for very different absolute prices.

Payer mix and licensure are the biggest swing factors. Medicare/Medicaid certification, accreditation (such as CHAP or ACHC), a clean survey and compliance history, and, in certificate-of-need states, a transferable license can add meaningful value. Beyond that, a stable patient census, diversified and durable referral sources, low caregiver turnover, and management depth so the agency does not depend on the owner all push toward the high end.

Buyer type matters: an individual buyer typically pays an SDE multiple with SBA financing, while PE-backed platforms and strategic home-care operators pay on EBITDA and may structure 60%-80% cash at close with the balance as equity rollover or an earnout tied to census retention. DealSeam is not a traditional business broker; where there's a fit, it introduces owners to qualified buyers, with the buyer paying the success fee.