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Executives at Home Health Care News’ FUTURE conference described a shift in home-based care M&A: buyers are looking beyond EBITDA to sustained growth, clinical quality and leadership. Some are also keeping former owners involved after deals, including through operating roles or continued equity stakes.
Home-based care buyers are looking beyond EBITDA when evaluating acquisitions and, in some cases, keeping sellers involved after closing, executives said at Home Health Care News’ FUTURE conference. Their comments point to a dealmaking approach that places more weight on sustained organic growth, clinical quality and leadership, while making some sales an ongoing partnership rather than a complete exit.
Dustin Distefano, chief operating officer of franchise operations at A Place At Home, said sellers can support their company’s value by showing growth that is backed by infrastructure and a developing team. Earnings alone may not reveal whether a business is expanding sustainably, he said. Distefano said he encourages operators to keep growing rather than settle into a plateau, which he described as a sign of “staleness.”
Aveanna Healthcare Holdings CEO Jeff Shaner said he would favor a slower-growing business with stronger clinical quality over a faster-growing company whose commitment to quality was less clear. Shaner said he sees a relationship between financial outcomes and clinical results, and looks for businesses focused on long-term clinical excellence.
Bill Mixon, an executive partner at private equity firm Waud Capital, said buyer interest also depends on whether a company has cohesive leadership and a culture suited to its next stage. If a management team appears divided, he said, a buyer may have to address leadership before discussing other plans for the business. The speakers’ comments describe their own investment and operating perspectives; they do not establish a universal valuation formula or prove that all buyers are changing their criteria.
Growth Quality Shapes Deal Value
The shift described by the executives could affect both how owners prepare a company for sale and what buyers seek after acquiring it. Sellers may need to show not only current earnings, but also evidence of sustained organic growth, capable management and operating systems that can support further expansion. For buyers, those factors may help distinguish durable performance from results that look strong in a single financial snapshot.
Clinical quality also carries particular weight in home-based care, where services depend on delivering care in patients’ homes and maintaining capable teams. Shaner’s comments indicate that, for Aveanna, growth is not the sole measure of an attractive business. That approach may shape acquisition decisions, but the conference remarks do not provide figures showing how widely this view is shared or how much it changes sale prices.
Post-close arrangements matter to owners deciding whether to sell. If buyers retain founders or offer continuing leadership roles and equity, a transaction may preserve a seller’s connection to the business and its future performance. Such arrangements can also leave former owners with ongoing responsibilities and exposure to the company’s results, rather than ending their involvement at closing.
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Recent Deals Show Continuing Roles
The panel discussion comes amid deals in which the named executives’ organizations have expanded their home-based care operations. Aveanna, an Atlanta-based provider of home healthcare, hospice, private duty nursing and medical services, closed a $175.5 million acquisition of Family First Homecare in June. The transaction added 27 locations across seven states, according to the source report.
A Place At Home, an Omaha-based provider of non-medical in-home care and related services, was acquired by Dovida in February. Distefano, a co-founder, became chief operating officer after the deal. The report also says A Place At Home’s joint venture approach can let franchise owners retain minority ownership and continue as general managers. These examples illustrate arrangements described by the companies and panelists; they do not establish that every home care acquisition includes seller participation.
“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 Broad Is the Shift?
The conference discussion offers executives’ views, not market-wide data. The source report does not quantify how many home-based care buyers now prioritize organic growth, clinical quality or management culture over other measures, nor does it specify how those factors affect valuations. It is also unclear how often sellers remain as leaders or equity owners, and what terms govern those roles. The remarks do not establish whether the described practices apply equally across non-medical home care, skilled home health, hospice and other segments.
Deal Terms Will Show the Pattern
Further acquisitions and their disclosed terms will show whether the approaches described by the panelists continue to appear in the sector. For sellers considering a transaction, the panel’s guidance was to prepare evidence of sustainable growth, strong operations and effective leadership, not rely on EBITDA alone. Buyers and sellers will also need to clarify post-close roles, ownership and performance expectations when they agree on a deal. No specific next transaction, policy change or timetable was announced at the conference.
Key Questions
What are home-based care buyers said to be evaluating beyond EBITDA?
The panelists cited sustained organic growth, clinical quality, operating infrastructure, leadership and company culture. Their comments reflect individual perspectives, not a formal standard shared by all buyers.
Do sellers now always stay with a company after closing?
No. The report describes buyers keeping some former owners or executives involved, but it does not say this is standard for every acquisition. Roles and ownership depend on the deal.
What happened in Aveanna’s Family First Homecare acquisition?
Aveanna closed the $175.5 million acquisition in June. The deal added 27 locations across seven states, according to the source report.
What role did A Place At Home co-founder Dustin Distefano take after its sale?
After A Place At Home was acquired by Dovida in February, Distefano became chief operating officer of franchise operations, according to the report.
Source: rss
