Financial Tools

What’s Your Home Health Agency’s Value?

04/28/2022

What do you think your agency is worth?
Most over-estimate their agency’s value.
Your valuation depends on several factors.

Use the formula below to estimate your agency’s value.

Steps:

1. Please enter numbers to the dollar amount.
2. Enter your Gross Margin % (enter 0 if you don’t know it). Learn more here. 
3. Enter your EBITDA (see below) 
4. Ensure you are only entering whole numbers (no decimals)

• Gross Margin is your Profit after Direct Visit Expenses as a percentage of revenue. This is usually is in the 30% to 50% of Revenues.
• EBITDA is your Earnings Before Interest, Tax Depreciation and Amortization. This is your “bottom line” before these expenses and without extraordinary expenses.

VALUE MODEL

Want a dialed-in picture that takes into full account your agency’s operational, financial, and clinical situation? Need help getting your agency ready for purchase, sale, or merger?

Give us a call at (203) 691-1319 or email info@corcoranconsultants.com for a confidential, no-obligation chat.

 *This calculator is designed to be informational only and does not constitute sales or purchase advice. The estimated value shown is hypothetical and is provided for illustration purposes only. There are many factors which affect the market value of your home care business including, among other considerations, geographic area, overall size, quality of earnings and timing. You should consider the counsel of a certified valuation professional before making any type of sales or financial decision.