We are living in a time of persistent uncertainty. Headlines warn of tariffs, the risk of a global trade war and the rising costs of everything. Homecare businesses are grappling with obstacles including a labor market that makes finding and keeping qualified, hard-working employees more difficult. On top of all of this, changes in regulations—and more under consideration—are adding layers of complexity to an already challenging operating environment.
This may feel like a lot to deal with. But if you own a home health agency, hospice or a home medical equipment (HME) company, none of this should feel entirely new. The COVID-19 pandemic shook the industry just five years ago. Before that, we weathered waves of Medicare and Medicaid reform, Medicare bidding and countless other regulatory twists and turns. The truth is that uncertainty is certain. It has become the norm, not the anomaly. If you’re considering selling your business, the question isn’t whether there will be turbulence—it’s how you can plan for it.
So, how do you navigate a sale or prepare your company for a future transaction when factors that impact operations keep shifting? And perhaps more importantly, how do you know when the timing is right to sell?
Focus on Your Timing, Not the Market’s
First, let’s address the temptation to “time the market” when selling your homecare business. Remember that even professional investors struggle to do this well, and it’s really no different when it comes to selling a company. Trying to predict the perfect moment based on external factors—including mergers and acquisitions (M&A) trends, changing regulations and interest rates—can lead to overthinking, stress and missed opportunities.
A far more important consideration is your own timing. What’s right for you, your family and your long-term professional and personal goals? Are you ready to move on to your next venture or transition into retirement? Whether your exit horizon is one year or five years away, this needs to be an internal conversation. You should be asking yourself: What do I want from the next phase, and when do I want it to begin? This is a conversation you may also want to have with family members and your company’s senior leadership.
It’s also critical to recognize that transactions today take longer than they did in the past. A sale that once took six months might now take eight months, 10 months, or even a year or more—and that’s before you factor in a transition period to new ownership, which can add another three to six months. In other words, if you’re hoping to be fully out of your business within a year, you needed to start the transaction yesterday.
Preparing Your Business for Transaction Success
Whether you’re planning to sell in the next year or are keeping your options open for the next five, there’s important work you should be doing now to strengthen your company and improve its marketability for prospective buyers. Here are four things you can do now to bolster your business.
1. Conduct an honest self-assessment
Look at your business as if you were a buyer. What are its biggest strengths? Where are its weakest areas? Which service lines are profitable, and which are draining resources? Too often, owners avoid asking these and other tough questions about their business, choosing instead to stay in cruise control because the business is profitable. But could it be more profitable? More efficient? Better positioned for long-term success? In addition to asking yourself these questions and doing the work needed to clearly answer them, consider getting objective input from a qualified third-party expert: someone with the knowledge and experience to conduct a deep, unbiased assessment of your business as it stands today and identify areas for improvement.
2.Focus on your competencies
It’s easy to fall into the trap of trying to be all things to all people, especially during uncertain times when diversification can essentially feel like a safety net. The reality is that businesses that stick to what they do best tend to perform better and attract more buyers willing to pay higher prices.
Whether you specialize in respiratory care, hospice or skilled nursing, it’s never a bad idea to double down on your core strengths. Look for opportunities to deepen your expertise, expand geographically or enhance billing and referral networks. Meanwhile, you should also resist the urge to jump into unfamiliar territory that could stretch your team too thin and undermine your core competencies. The risk is often not worth the potential—and unknowable—reward.
3.Assess & move on from unprofitable segments
Now is the time to review all your accounts, contracts and service lines. If something is consistently unprofitable, whether it’s a payer, a patient population or a particular line of service, don’t be afraid to wind it down or move on from it. Buyers are generally looking for highly efficient and productive businesses with strong margins over overextended operations chasing every possible dollar.
4.Consider growth opportunities—but be strategic
Growth can still be part of a good business plan, even in volatile times, but it should be intentional and aligned with your core business. Expanding within your niche, entering adjacent markets where you already have expertise or improving operational efficiencies can all add value without introducing excessive risk or resource drain.
Partnering With Experts
Perhaps the most important piece of advice is this: You don’t have to—and shouldn’t—do this alone. That’s why building your “transaction team” is so crucial. Alongside an attorney and accountant, engaging an experienced health care M&A advisor can make all the difference, whether your timeline to a transaction is measured in months or years. A qualified advisor can help you assess the current state of your business, understand its true market value, identify overlooked opportunities and align your strategy with both your short- and long-term personal and professional goals. The key takeaway here—don’t wait for perfect conditions because they rarely come and you cannot control them. Instead, focus on making your business the best version of itself, so when the right time comes, you’re ready to maximize its value and move toward a transaction with confidence