Home care agency owners often ask what their business is worth. The honest answer is that it depends on what kind of agency you own. In this short video, Moses Shmueli, Managing Partner of Northeastern Advisors, walks through the typical valuation ladder for home care agencies.
Typical valuation multiples for home care agencies
- Owner-operated agencies: about 3x to 4x seller’s discretionary earnings (SDE), meaning the profit plus what the owner pays themselves.
- Larger agencies with a real management team: about 4x to 6x EBITDA.
- Platforms with more than $5 million of EBITDA: can reach double-digit multiples.
These are indicative ranges from NEA’s 2026 Home Health and Personal Care Industry Report, not an appraisal of any specific business.
What moves an agency up the ladder
Four factors do most of the work in moving an agency toward the higher end of the range: payer mix, caregiver stability, growth, and clean compliance. Size matters too, because larger agencies with management in place are less dependent on the owner and carry less risk for a buyer.
For a deeper look at how buyers set a price, read our guide How Much Is My Business Worth?
Video transcript
What’s a home care agency actually worth? The answer depends on which kind of agency you own. Smaller, owner-operated agencies typically trade at about three to four times seller’s discretionary earnings: the profit plus what the owner pays themselves. Larger agencies with a real management team move into four to six times EBITDA. And platforms with more than five million dollars of EBITDA can reach double-digit multiples. What moves you up the ladder? Payer mix, caregiver stability, growth, and clean compliance.
Get a range for your agency
Run your own numbers with our free business valuation calculator, or contact Northeastern Advisors for a confidential valuation conversation. You can also call us at (646) 461-6630.
