TL;DR
Executives at Home Health Care News’ FUTURE conference said home-based care buyers are looking beyond EBITDA to sustained organic growth, clinical quality and cohesive leadership. They also described deal structures that keep sellers involved as executives, operating partners or minority owners after closing.
Home-based care acquisitions are increasingly being treated as ongoing partnerships, with buyers weighing a company’s sustained growth, clinical quality and leadership alongside its earnings, executives said at Home Health Care News’ FUTURE conference. Some buyers also keep former owners involved after closing, including as leaders or equity partners, changing what a sale can mean for sellers and their operations.
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Adjusted earnings alone may not capture a company’s prospects, the panelists said. Dustin Distefano, chief operating officer of franchise operations at A Place At Home, said sellers can support their valuation by showing organic growth, infrastructure and a team capable of sustaining expansion. EBITDA can appear strong without showing whether growth is continuing, he said, urging operators not to settle into a plateau.
Distefano said he has used what he called an organic-growth model to tell operators that signs of stagnation could reduce how he views their value. His comments describe his approach; the conference report did not provide a standard valuation formula or data on how widely buyers use one. A Place At Home provides non-medical in-home care and related services across 22 states.
Clinical outcomes and leadership also shape buyer assessments, according to Aveanna Healthcare CEO Jeff Shaner and Waud Capital executive partner Bill Mixon. Shaner said he would favor a slower-growing business with stronger quality over faster growth that lacks the same commitment to care. Mixon said a management team that appears divided or lacks a clear culture can make it difficult to move into discussions about the rest of a deal.
The panel also described arrangements that preserve seller involvement after a transaction. Shaner said Aveanna seeks to make sellers equity owners and leaders in acquired operations. Distefano, an A Place At Home co-founder, became the company’s COO after its February acquisition by Dovida. The report also said A Place At Home’s joint-venture approach can allow franchise owners to retain minority stakes and serve as general managers.
What Buyers Value Beyond Earnings
The shift broadens the evidence sellers may need to present when seeking a buyer. A company’s financial performance remains part of a deal, but panelists emphasized that buyers may also examine whether growth can continue, whether care quality is strong and whether the leadership team can carry out a business plan. Those factors can affect both a buyer’s assessment and the responsibilities an owner retains after a sale.
Continued seller involvement can link the seller’s interests to the company’s later performance, particularly where former owners retain equity or operational roles. It can also mean a transaction is not a clean break: sellers may remain accountable for leadership and growth after receiving proceeds. The conference discussion offered examples and executive perspectives, not evidence that every buyer is adopting this model or that it produces better outcomes.
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Recent Deals Show Seller Continuity
Aveanna’s acquisition of Family First Homecare provides a recent example of the scale of activity in the sector. Aveanna closed its $175.5 million purchase in June, adding 27 locations across seven states, according to the source report. The company provides home health care, hospice, private duty nursing and other medical services in 39 states.
A Place At Home’s February sale to Dovida illustrates how founders can remain in operating roles after a transaction: co-founder Distefano was named COO following the deal’s close. The two examples do not establish a sector-wide rule, but they help explain the panel’s focus on post-close relationships as well as purchase price and valuation.
““If you’re showing organic growth and infrastructure, and that you’re building your team, your value’s going with it.””
— Dustin Distefano, chief operating officer of franchise operations at A Place At Home
How Widely Will Deals Change?
The conference account does not quantify how common these practices are or show whether buyers across the sector are changing their valuation methods. It also does not specify how organic growth, clinical quality or leadership are weighted against earnings in individual transactions.
Post-sale terms will vary by deal, and the report does not detail the equity stakes, governance rights, time commitments or performance conditions available to former owners. The examples establish that some companies use continuing roles and ownership arrangements; they do not confirm that such terms are typical or suitable for every seller.
What Sellers May Need to Show
For prospective sellers, the panelists’ guidance points to preparing evidence beyond financial statements: sustained organic growth, operating infrastructure, care quality and a cohesive management team. Owners considering a deal may also need to clarify what role they want after closing and what ownership or leadership arrangements they would accept.
The next test will be how buyers apply these priorities in actual transactions. The source report did not announce new deal terms, a sector-wide standard or a scheduled follow-up. Future transactions and disclosures may show whether sellers are increasingly retained and how much weight buyers give to quality, leadership and growth relative to earnings.
Key Questions
What is changing in home-based care deals?
Executives at the FUTURE conference said buyers are looking beyond EBITDA to consider sustained organic growth, clinical quality and leadership. Some buyers also keep former owners involved after closing.
Does EBITDA still matter to buyers?
The panel did not say earnings no longer matter. Its point was that EBITDA alone may not show whether growth is sustainable or whether the company has the leadership and care quality buyers seek.
Can a seller remain involved after selling a company?
Yes, some arrangements keep sellers in roles such as executives, operating partners or minority owners. The available terms depend on the transaction; the report does not say these arrangements are standard.
What examples did the conference report describe?
Aveanna said it seeks to make sellers equity owners and leaders in acquired operations. A Place At Home co-founder Dustin Distefano became COO after the company’s February acquisition by Dovida.
What remains unknown about the trend?
The report does not establish how widespread the approach is, how buyers weigh each factor in valuations or what equity and leadership terms sellers typically receive after closing.
Source: rss
