Hello community,

I am in the process of doing due diligence on a home health business and wanted to seek any guidance if anyone has done any deals in the industry. Lucrative certifications and contracts with the government and Military. However, there was a 1M Medicaid expansion plan the state government passed that gives $1M yearly to such businesses in elderly care to entice them to support the elderly with Medicaid. This yearly grant will continue till 2024.

The owner is asking for multiple that falls within the industry range. However, it is a bit on the higher end. I really would not consider this "Other Income" in the valuation. But I am curious if anyone has dealt with such a thing. I would love to have a chat. Thank you.