Contemplating the Future Sale of Your Home Care Business

To help prepare for the sale of your home care business and to achieve maximum value, we’re come up with five key considerations:

1.  Keep and maintain important financial records.  They will provide a valuable and visible first impression to potential buyers or home care brokers.  Allow access to adequate documentation to alleviate their concerns.  Audited financial statements are also important.

2.  Reduce owner dependence.  An employment agreement including calculated incentives can “handcuff” a key manager or equivalent to run the business in your absence.  Buyers will be concerned that when the owner goes the business will go, too.  Do your best to become irrelevant.

3.  Resolve outstanding legal matters.  The last thing a new owner wants is potential legal exposure or liability.

4.  Create quality budgets and forecasts.  “Quality” means realistic and achievable forecasts that will help potential buyers visualize their future profit.

5.  Secure and diversify your customer base.  Buyers and home health mergers and acquisitions brokers love long-term customers and solid revenue streams.  However, always be mindful of diversification and be sure all your eggs are not kept in one basket.

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About Risa Baker

Risa is Managing Director of PARTNERS 31. Her natural enthusiasm and years of industry experience will successfully guide your business, whatever its size or specialty, through every aspect of exit planning, from strategy to sale.

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