Southern California Home Health & Home Care, 12-Year Licensed Agency

$1.7M

Revenue

$512K

SDE

4.7x

Multiple

Subscribe Free

Read the full deal writeup

Get Free Access

Already a member? Sign in

Full Editorial Writeup

This is a 12-year-old skilled home health and non-medical home care agency operating out of a single leased office in Irvine, California. It serves Orange, Los Angeles, San Bernardino, and Riverside counties, with state licensing that permits operation anywhere in California. The clinical team is lean: 4 LVNs, 5 registered nurses, plus part-time admin and billing support, running on established clinical, scheduling, and operating software.

The business combines the reimbursement stability of skilled home health with the private-pay flexibility of non-medical home care, giving it two revenue streams inside one licensed shell. It carries 10 payer/charge relationships (seven contracted, three call-as-needed) plus three additional signed contracts that are not yet marketed, suggesting untapped volume already sitting under contract. Patient growth has been strong, moving from 133 patients in 2023 to 284 in 2024 to 312 in 2025.

At $1.69M revenue and $512K EBITDA, this is a roughly 30% margin services business in one of the strongest structural demographic tailwinds in the country. It is SBA pre-approved and relocatable, and the statewide license is a real asset that would cost significant time and money to replicate from scratch. Priced at $2.4M, or 4.69x EBITDA, it sits at the higher end of home health comps, which puts pressure on diligence around margin durability and payer concentration.

Why we like it

Earnings quality is solid for a services business, with $512K EBITDA on $1.69M revenue implying roughly a 30% margin, well above typical home care operators. The seven contracted payer relationships plus three call-as-needed accounts suggest recurring, repeat-billing revenue rather than one-off project work.
The moat here is the license and payer contracts. A statewide California home health license takes years and meaningful capital to secure independently, and the seven signed contracts plus three unmarketed additional contracts represent switching costs and referral relationships a new entrant cannot buy off the shelf.
Demographics are the tailwind. Home health and home care ride the aging Baby Boomer wave, and Southern California is one of the densest senior markets in the country, which is exactly why patients served more than doubled from 133 in 2023 to 312 in 2025.
This is genuinely recession-resistant. Skilled nursing and non-medical care for the elderly and homebound do not get cut in a downturn, and a large share is reimbursed through insurance and government payers rather than discretionary household spending.
The three signed but unmarketed contracts plus statewide licensing mean growth is baked in and does not require inventing new demand. A buyer can activate existing contractual capacity and expand beyond the current four counties without new regulatory approval.

How to improve it

Activate the three signed contracts that are currently unmarketed within the first 90 days. These are executed relationships already sitting idle, so staffing up to serve them converts paper capacity into billed revenue faster than any new business development effort.
Map and de-risk payer concentration immediately. With only 10 charging relationships, identify what percentage of revenue comes from the top two or three payers and build a plan to diversify before that concentration caps your exit multiple or threatens cash flow.
Expand geographically using the statewide license. The agency currently serves only four counties despite being licensed for all of California, so opening satellite coverage in adjacent metros like San Diego or the Central Valley uses an asset you already paid for.
Build a formal referral engine with hospitals, discharge planners, and physician groups. Consistent inbound referrals drive patient volume in home health, and systematizing these relationships would smooth the growth curve beyond the current organic ramp.
Tighten clinician scheduling and utilization on the existing software platform. With 9 nurses on staff, small improvements in visits-per-nurse and drive-time routing flow straight to margin, especially given the reimbursement-per-visit ceiling in this model.
Address the single-office, near-term lease risk. The lease expires September 2027, so a buyer should either renegotiate a long-term extension or use the relocatable nature of the business to lock in better terms and eliminate a diligence overhang.
Layer in higher-margin private-pay non-medical care. The business already holds a non-medical home care license, and private-pay hourly care carries better economics than insurance-reimbursed skilled visits, so marketing this line harder lifts blended margin.

Diligence notes

Verify the $512K figure. The listing labels it EBITDA in one place and SDE in the title, and these are very different numbers. Confirm whether it includes or excludes a market-rate owner replacement salary, because a working owner running an 11-person clinical shop needs to be normalized out.
Scrutinize payer mix and reimbursement rates. Determine what share of revenue is Medicare, Medi-Cal, commercial insurance, or private pay, and check for any pending reimbursement rate changes or audits that could compress margins post-close.
Confirm the licensing and compliance status is clean and transferable. Home health licenses, Medicare certification, and survey history are critical, so review the last state survey results, any deficiency citations, and exactly how the license transfers in an SBA-financed sale.
Test the durability of the top contracts. Seven contracted relationships driving a $1.69M business means concentration risk, so read the contracts for term length, termination clauses, and volume commitments, and understand renewal timing on the three signed unmarketed contracts.
Validate the patient growth and revenue trend. Confirm that 133 to 284 to 312 patients tracks with billed revenue growth, and check whether revenue per patient is stable or declining as volume scales, since more patients at lower reimbursement can flatten earnings.
Assess staffing stability and clinician retention. In home health, nurses are the product, so review turnover, wage rates, whether the 9 nurses are W-2 or contractors, and whether any key clinician relationships walk with the departing owner.

Source

Originally listed on BizBuySell. View original listing →