Home Care Agency Business Interest

by a searcher from Clarkson University - School of Business

4 weeks ago

Hey Everyone,

I am a self funded searcher working on a few thesis. Looking for an asset light service business and I came across the home care agency model. I have fund quite a few deals in the space and I am wondering if anyone in here is who knows this business that wants to talk shop and give an overview of what all goes into that business, things to consider, etc? 
I'm assuming its an insurance heavy business. 
I'm assuming its not the easiest to find workers. 
But don't want to make too many assumptions so looking to talk to anyone willing.
Thanks!

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4 comments

searcher from New York University - Leonard N. Stern School of Business

It's a great industry but as others have mentioned be careful of the payor mix (private, Medicare, Medicaid, long-term care) and yes labor is not easy but it depends on the market. Some franchise territories have excellent demographics for clients (meaning high net worth / disposable income to spend on care) but those same areas may have tight labor due to high cost of living.

2 weeks ago | like reply | 0 likes

searcher from Northwestern University - Kellogg School of Management

think the agency space is hard - you need scale. however, franchise models can work. PE owners of these businesses have###-###-#### % margin, so if you can build the talent pool there's a decent business. You just need to know what you're getting into....

2 weeks ago | like reply | 0 likes

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