Key Value Drivers for Home Health Care Business Owners - Partners31: Specializing in Health and Human Services

Key Value Drivers for Home Health Care Business Owners

Do you ever wonder why one business commands top dollar from multiple buyers while another sits on the market for months–or even years? Do you wonder what characteristics buyers look for in a prospective target for home care merger and acquisition? Before the sales process even begins, you must build value within your business to meet their demands.

Value Drivers are those characteristics, common among industries, that reduce risk or enhance business value. Proprietary technology, market position, brand name, diverse product lines, and patented products are among the many items that create business value.

Some of the key Value Drivers that are common to most businesses include:

* stable, motivated management teams
* operating systems that improve cash flow sustainability
* loyal and diverse customer bases
* facilities and equipment consistent with asking price
* realistic growth strategies
* effective financial controls
* solid–and improving–cash flows

Your adoption and implementation of these Value Drivers will determine whether potential home health brokers or buyers will pay a premium price for your business. These were not dreamed up by business school professors; Value Drivers are aggressively sought by professional, sophisticated buyers looking to acquire closely-help businesses. Concentrate on developing and enhancing each to command top dollar for your business.


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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