Insights
Why Home Healthcare and Hospice is Getting Investor Attention
January 17, 2022
Investors are currently seeking opportunities that will allow them to invest their funds in safe-havens.
Prior to the pandemic, the market saw investors being more active in the home healthcare and hospice industry. Private equity investment within the space was at an all-time high in 2019. Private equity has been interested in the space because the industry has favorable reimbursement policies in the United States, and patients are becoming less reliant on visiting hospitals.
The pandemic has allowed for remote monitoring and has made virtual visits more mainstream. This new level of normalcy has opened more opportunities within the sector. If an investor is seeking to diversify their traditional practices, many investors feel that home health businesses are ideal to integrate with traditional providers. The attractiveness of the sector has trade, synergistic, and new investors seeking opportunities within space.
You may ask what is driving the interest in this market. According to the U.S. Census Bureau, by 2030, approximately 12% of the world population will be 65 or older. Baby Boomers that currently own many companies within the space are also aging and looking to retire. The pandemic has also accelerated some business owners’ exit strategies, which has allowed more quality businesses to be available for sale.
Grata, a private company intelligence engine, estimates that there are 305 home healthcare companies in North America. Of these 305 home healthcare companies, it is estimated that 90% remain independently owned. Florida, California, and New York—in that order—have the highest concentration of home healthcare companies, and around 50% of the companies within the space have 51-5,000 employees. With only roughly 7% of the sector receiving funding to date, there are still plenty of opportunities for investment and consolidation within the space.
Whether you are a first-time acquirer or a seasoned professional, if you haven’t considered home healthcare acquisitions in the past, 2022 might be the year to reconsider your search parameters.
Author
Kendall Stafford
Managing Partner
Benchmark International
Share This Post
Categories
Get These Insights Delivered Directly To Your Email
Explore our curated collection today and stay ahead of the curve in M&A.
Publicaciones relacionadas
Benchmark International Rolls Out New Interactive Publication of the MarkBenchmark International has released a new publication, The Mark, which is an award-winning publication that offers exclusive insights into the world of mergers and acquisitions and specialized guidance for business owners on a wide range of important topics.Kendall Stafford Recognized as Investment Banker of the Year and Benchmark International Earns Cross Border Deal of the Year at M&A Advisor AwardsAt the 23rd Annual M&A Advisor Awards, Kendall Stafford, Managing Partner at Benchmark International, was named Investment Banker of the Year.