Agenda Health, a healthcare-focused M&A advisory firm based in Austin, Texas, played a key role in the recent acquisition of Angel Senior Home Care, a Virginia-based home health provider, by an undisclosed buyer. The deal marks a strategic move for the buyer, enabling it to expand its footprint into Virginia, a new state for its operations.
Agenda Health’s involvement began by initiating contact with Angel Senior Home Care. Ryan Lafferty, an M&A advisor at Agenda Health, shared insights into the deal process.
“I connected with the sellers last summer and went through a process of helping them figure out their value and connect with buyers. It took about a year to complete the transaction,” Lafferty explained. The outreach to the sellers by Agenda Health underscores its proactive approach in M&A activities.
According to Lafferty, this acquisition not only expands the buyer’s geographic presence but also enhances its portfolio in the home health sector.
“[The buyer] invests in other healthcare verticals as well, and this was a strategic place for it to get into Virginia, filling in the map in this particular vertical,” Lafferty added.
The year-long acquisition process was not without its challenges. “There are always hurdles in such processes, from questions arising during due diligence to multiple buyers showing interest and then pivoting,” Lafferty said. Despite these challenges, the deal progressed smoothly once the right buyer was identified.
Specific financial details of the deal remain undisclosed, as confidentiality agreements often prevent the release of such details.
Lafferty highlighted the constant presence of opportunities, regardless of economic conditions. “There’s always opportunity. Buyers and sellers remain opportunistic, and we’ve always been able to match motivated sellers with buyers,” he said. This adaptability is crucial in a market that sees fluctuations in deal activity and economic conditions.
Looking ahead, Lafferty seems optimistic. “It feels like the wind is shifting to behind our backs. Despite the challenges in 2023, we grew as a company and anticipate continued growth,” he expressed.
According to data captured in the LevinPro HC database, there have been 53 Home Health & Hospice (HH&H) transactions announced YTD. Out of the total deals announced YTD, 25 specifically focus on the home health sector, indicating strong interest in this area. During Q2:24, there were 30 deals announced in the HH&H space, representing a 50% increase over the 20 deals announced during the previous quarter, and a 7% increase from Q2:23. These numbers suggest that the HH&A M&A market is heating up, with a particular focus on the home health sector. This could be due to a number of factors, such as the growing demand for home-based care services, an aging population and favorable regulatory changes.
If what Lafferty said is true (and considering the M&A data, it appears to be), then the home health space will continue to present lucrative opportunities for both buyers and sellers, regardless of economic fluctuations. This resilience suggests that strategic acquisitions like this one will remain a key driver of growth and expansion in the industry.
Check out our other interviews conducted with the Agenda Health team:
