You’ve dedicated years to building your homecare agency. Now that it’s time to move on—whether for retirement or a new chapter—you want to ensure you get the maximum value for your hard work.

The great news is you don’t need a decade to make a difference. Many of the most impactful value-enhancing changes can be implemented within 6 to 18 months. The key is knowing which levers to pull. Buyers focus on risk, scalability, and sustainability. The less risk, the higher the price.

Here are five proven strategies to significantly increase your homecare agency's valuation before listing it, ranked by impact.

Wondering what your homecare agency is worth? Try our homecare agency valuation calculator.

1. Reduce Owner Dependency (The Single Biggest Factor)

Buyers are purchasing a business, not a job for you to manage. If the agency cannot thrive without your daily involvement, buyers will heavily discount the price.

• The Impact: Owner-dependent agencies often sell for 2–4x Seller's Discretionary Earnings (SDE), while agencies with strong management teams can command 6–12x+ EBITDA. This difference can mean millions on the sale price.

• What to Do:

  • Build an Empowered Management Team: Hire or promote capable managers to handle day-to-day operations, HR, and client relations.

  • Document Everything: Create clear, repeatable procedures, policies, and systems that act as a comprehensive operational playbook.

  • Step Back Gradually: Delegate key responsibilities and take extended vacations to prove, with data, that the business runs smoothly in your absence.

  • Transition Key Relationships: If you are the primary relationship holder with top referral sources or clients, systematically transition those relationships to your management team.

Timeline: 12–24 months for complete transformation, but significant results can appear in 6–12 months.

2. Improve Your Payer Mix (High Impact, Moderate Effort)

The source of your revenue directly influences your valuation. Buyers look for stability, higher margins, and less political risk.

• The Impact: Heavy reliance on Medicaid typically reduces value. Medicare and Private Pay command premiums because they generally offer better margins and reduced regulatory risk. Agencies with a favorable mix (e.g., >60% Medicare + Private Pay) can receive a 15–30% multiple premium.

• What to Do:

  • Shift Towards Favorable Payers: If certified, focus marketing efforts on Medicare-eligible clients. Prioritize developing and expanding your Private Pay client base, as it offers the highest margins and lowest risk.

  • Optimize Existing Mix: Even a small shift of 10–20% in your mix can make a difference in buyer perception.

  • Document Payer Relationships: Clearly demonstrate strong, established relationships with favorable payers to buyers.

Timeline: 6–18 months to see meaningful shifts, depending on your market and current contracts.

3. Build Scalable Client Acquisition Channels (High Impact, Moderate-High Effort)

A business where 80% of clients come from the owner's personal network is a major red flag—that revenue source disappears when the owner leaves. Buyers want transferable, sustainable growth engines.

• The Impact: Shifting from owner-dependent sales to scalable channels can increase your multiple by 10–20%, and, critically, makes the difference between a saleable business and one that’s too risky.

• What to Do:

  • Develop MCO Contracts: Establish and maintain strong relationships and contracts with Medicare Advantage plans and Managed Care Organizations.

  • Invest in Digital/Organic Acquisition: Build a robust website and content strategy to generate leads organically through Search Engine Optimization (SEO).

  • Formalize Referral Networks: Create structured, professional referral relationships with hospitals, skilled nursing facilities, discharge planners, and other healthcare providers.

Timeline: 12–24 months for foundational results, with tangible progress visible in 6–12 months.

4. Clean Up Your Financials and Operations (Moderate Impact, Low-Moderate Effort)

Messy books and operational disorganization create buyer uncertainty, and uncertainty always results in a discount. Buyers pay a premium for clarity and peace of mind.

• The Impact: While this may only add 5–10% to your multiple, it significantly reduces the risk of the deal falling apart during due diligence. It also speeds up the sales process and increases buyer confidence, leading to better offers.

• What to Do:

  • Get Your Books in Order: Work with an experienced accountant to ensure financial records are clean, accurate, and ready for scrutiny.

  • Standardize Operations: Document all processes, procedures, and systems clearly.

  • Preemptively Address Issues: Resolve any pending litigation, regulatory issues, or compliance concerns before you list the business.

  • Organize Documentation: Consolidate and ensure all client contracts, vendor agreements, and leases are current and easy to access.

Timeline: 3–12 months, depending on the current state of your documentation.

5. Build Quality Metrics and Positive Modifiers (Moderate Impact, Low-Moderate Effort)

Buyers pay premiums for agencies that can demonstrate a commitment to quality, efficiency, and operational sophistication.

• The Impact: These "positive modifiers"—like strong quality scores or modern technology—can add 5–15% to your multiple and position you as a market leader.

• What to Do:

  • Improve Quality Scores: Focus on maximizing HHA CAHPS scores and Medicare Star Ratings (aim for 4+ stars).

  • Implement Digital Systems: Ensure you have fully digital records and scheduling via a modern Electronic Medical Record (EMR) system.

  • Obtain Clean Audits: Regular, clean financial audits signal low risk to prospective buyers.

  • Document Strengths: Proactively showcase your operational advantages and quality performance in your offering materials.

Timeline: 6–18 months for most quality-related improvements to fully register.

The Power of the Compound Effect

The true power of these strategies is when they work together. An agency that successfully reduces owner dependency, improves its payer mix, builds scalable client acquisition, and cleans up its financials could see its valuation increase by 2x to 3x or more.

If you're planning to sell in the next 12–24 months, start with the highest-impact and most feasible changes for your agency. The sooner you begin, the greater the value you will ultimately create.