Anonymous from Booth - BVR DEAL STATS has 1887 transactions for the higher level NAICS code (NAICS: 62) which includes Home Health Care (NAICS: [redacted]You can find BVR DEAL STATS under the VALUATIONS tab at the top of this page. Here is the direct link: https://www.searchfunder.com/bvr/sector/104

We're currently discussing a deeper integration with BVR that will allow Searchfunder to display more granular data. Right now, we can only display the higher level multiples under our license agreement, but each of the 1887 transactions are available with a day pass or annual subscription to BVR DEAL STATS. ^[redacted]‌ & ^[redacted]‌ at BVR can help you out if needed.

Please note that Searchfunder is entirely independent from BVR & receives no compensation of any kind if you choose to buy their data.

Also tagging a few Searchfunders that have commented on Home Health Care in the past and might be able to offer helpful anecdotal information here

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With Best Wishes, ^[redacted]‌

I've seen independent HHC businesses in the 500k-1M EBITDA range consistently go for 4-5x multiples. I don't have any experience with acquiring franchises though, so I don't know if there are any dynamics that would make their valuation different from an independent.

It always gets down the the debt coverage ratio, how much you put down and bank loan metrics. If you are using an SBA, I always use 10% down, 10 yr. amort. SBA legal limit is 1.2 but never had a buy client pay more than 1.5X in debt coverage ratio. That is what I use for the highest that can be paid (and that is what the banks will look at as he who holds the Gold makes the rules). Then you have to look at all the soft factors as there is always a standard deviation of 25%+/-. Generally all businesses in almost every industry, the average SDE is 2.78 and EBTIDA is 3.81X (true EBITDA not what you see listed as most confuse SDE and EBITDA). Its all about cash flow. And as the business is bigger, then the multiples increase at a 45 degree angle. I have helped Buyers buy a few franchises as well as independents. It is a lot easier for someone not in the business to buy a franchise. Many independents are small, no marketing, owner is big part of the equation, etc. Negatives of Franchise is geographical growth, restrictions on doing skilled care and Medicare clients. But you look at the Cash Flow after franchise fees.

Some states are crazy in the approval process, in one deal in NY, because they accepted Medicaid, had to go through state approval and took 13 months AFTER the Purchase Agreement (not the LOI) to get approval. The old owner even had a heart attack during this time and thank god he didn't die. This was a franchise, and the new owner double sales and profitability in 24 months.

Hi! I did some searches in the DealStats database for home health comps between 500SDE and 1M SDE and came up with a average MVIC/EBITDA multiple of 4. I'm happy to discuss the database with you further if you have any questions.