Hospice acquisitions saw a gentle rebound in Q1 2025. Deal volume is up relative to 2024’s slump, but activity has not reached the boom levels of 2020 and 2021. The M&A market’s rejuvenation extends across a range of home-based care industries, according to a new report from the M&A advisory firm Mertz Taggart. The “tides […]
Mertz Taggart
Hospices that have palliative care service lines may be better poised for growth in the merger and acquisition landscape compared to others. But the ability to demonstrate sustainability and scalability of these services will be crucial to manifesting a return on investment. Investors’ interest in palliative care has slowly mounted in recent years, with these […]
A clear trend has emerged in the health care industry: Mergers and acquisitions of health care firms have slowed year over year. Though home-based care M&A showed “signs of life” in Q3 2024 in what has otherwise been a relatively quiet year thus far, transaction volume was still down last year, according to a report […]
Quality, compliance and financial stability are top of mind in hospice merger and acquisitions (M&A) as this year comes to an end. Stakeholders are projecting a more frothy market in 2025, though regulatory concerns could sway buying decisions. Growing demand is among the constants driving investor interest in the hospice space, according to Tom Lillis, […]
The Federal Reserve cut interest rates by 0.5% on Wednesday, which will likely have an impact on hospice M&A. Interest rates have widespread implications for the hospice mergers and acquisitions market, particularly when it comes to private equity investments. PE firms, and some publicly traded companies, tend to finance their acquisitions by taking on debt. […]
Hospice merger and acquisition (M&A) activity tapered off in 2023 and early 2024 compared to the flurry of prior years, due in part to regulatory and economic pressures. Hospice deal volume and valuations have trended down from record-high levels during 2019 through 2022. The cool down began last year as hospice transaction activity lulled. This […]
Though many expect a hospice M&A rebound in 2024, the scales are tipping in favor of home health companies among buyers. Generally, signs point to heightened buyer activity this year, particularly among private equity as interest rates start to come down. After 2023’s slump, PE firms have been sitting on more than $800 million in […]
After a rocky year for M&A, two of the publicly traded hospice providers are poised to pursue more deals in 2024. Based on 2023 earnings trends, The Pennant Group (NASDAQ: PNTG) and Addus HomeCare Cop. (NASDAQ: ADUS) are well-positioned to buy, according to an analysis by the M&A advisory firm Mertz Taggart. While the majority […]
The hospice and home health M&A landscape has become marked with uncertain terrain. Deal volume thus far in 2023 is down 50% to 60% from the previous two years, Cory Mertz, managing partner at M&A advisory firm Mertz Taggart, said at the HI2 Conference in Chicago. While companies that have a positive cash flow and […]
Some hospice owners have been selling their businesses soon after securing a license. This has prompted federal agencies to pursue new regulations to address the problem. The practice appears to stem from a rash of newly licensed hospices that have emerged in California, Nevada, Texas and Arizona. Some of these providers have secured licenses, as […]