Gobble, gobble. No, that’s not the whimper of your former Thanksgiving turkey. That’s the voice of a large home healthcare firm wanting to take a bite out of you, smaller home care player.
Increasingly, it seems, we are hearing from all corners that it’s a seller’s market and that smaller companies that want to exit stage left are in a prime position to do so right now.
Just Thursday, a story said that private equity deal-making is on track to surpass $1 trillion this year.
Larger home care companies, meanwhile, are not shy about saying they want you and are waiting for the final blow — be it the resumption of Medicare sequestration or the loss of coronavirus unemployment funding — for you to say uncle.
You know what I say? Don’t just go with the market tide. If you are contemplating giving up your business, make sure you are in a position to know what selling entails. One way to do this is to consult lawyers like Alan E. Schabes, who recently presented on this topic before an audience of the National Association for Home Care & Hospice.
His message? Get informed. When you are selling a home care business, it’s not just a question of turning over the keys. You need to know what you are embarking on, as far as why you want to sell, the financial entities involved and the due diligence required.
Is it a good time to sell? Absolutely. Is it the right decision for you? That depends.
The bottom line: Tread lightly. When you are dealing with an extremely personal business — and what could be more personal than home care? — the decision must be completely, wholly and unequivocally your own.
Liza Berger is editor of McKnight’s Home Care. Email her at [email protected]. Follow her @LizaBerger19.
