By Stephen Tweed
I received a call last week from the President of one of the largest home care companies in our Top 5% CEO Mastermind Group. He wanted to let me know that he and his partner had decided to sell their home care company. They had received an offer they could not refuse.
This is one of the major trends in our industry. Large home care companies backed by Private Equity Groups are consolidating the industry by acquiring smaller companies. Since July of 2020, we have had six members of our Home Care CEO Forum who have sold their businesses. We have two more members with a letter of intent to sell, and are doing their due diligence right now. Those deals should close in the next few weeks.
Honor Buys Home Instead
In our last newsletter we reported on the news that Honor, the venture capital backed home care technology company, has acquired Home Instead, the largest home care franchise company. We’ve talked with a dozen industry thought leaders to get their perspective on what this means to our industry. While no one has a crystal ball to see clearly what this means, there are several factors for you to consider:
- How will this acquisition affect the franchisees of Home Instead?
- How will this deal affect those companies that have previously joined the Honor Care Network?
- How will this acquisition impact the future of technology in home care?
- How will this deal impact the strategies of other home care franchise companies?
- How will this deal affect you in your local marketplace if you have a strong home instead franchise as a competitors?
Thinking about Buying or Selling
As this wave of buying and selling washes through the industry, how will it affect you? Have you been giving thought to buying another company to expand your business? Have you been considering your own exit strategy and when is the right time to sell?
We are discussing this in detail in our Home Care Mastermind Groups. Later in September, in our Mastermind Town Hall, we’ll have one of the leading home care Merger and Acquisition advisors talk with all of the members of our five groups about the surge of acquisitions, what that means to them, and how they can get ready.
Through research conducted by the Home Care CEO Forum, we have identified seven specific factors that affect the value of a home care company:
- Revenue Diversification
- Systems for client acquisition
- Systems for caregiver recruiting and retention
- Potential office team disruption
- Potential threats to profitability
If you are the owner of a profitable, growing home care company, and you would like to develop strategies to increase the value of your company before it is time to exit, you may want to have more in-depth discussions with other owners who are acquiring smaller companies, or owners who are preparing their companies for sale. You can do this be becoming a member of a Home Care CEO Mastermind Group, and meeting with owners and CEOs of similar sized home care companies who don’t compete with you. In this setting, you can share ideas, solve problems, and get ready for the future without your competitors knowing what you are considering.
We have openings in two of our four Mastermind Groups.
If you are an independent home care company generating between $2 million and $50 million in annual revenue, you may want to explore becoming a member of one of our four mastermind groups. We have openings.
- Strategic Growth Mastermind – 15 companies between $1.5million and $3 million. We will be splitting this into two groups in the fall so we have room for several new members.
- Top 10% Mastermind Group – 9 companies between $3 million and $6 million in annual revenue. We have room for four new members in this group.
- Top 7% Mastermind Group – 10 companies between $5 million and $12 million in annual revenue.
- Top 5% Mastermind Group – 11 companies between $8 million and $50 million in annual revenue.
If you would like to explore membership, go to our website and fill out the inquiry form. We’ll set up a time to talk so we can learn more about you and your company and you can learn more about our Mastermind Groups. If you are still interested, we’ll invite you to visit one of our online mastermind meetings to meet the group and experience their discussions. If you feel like it is a good fit for you, we’ll invite you to become a member.
Each group meets twice a year in-person, and once a month by video. September is Mastermind Month, and all four of our CEO Mastermind groups have their in-person meetings in a six week period.
- Strategic Growth is meeting in Orlando, FL
- The Top 10% Group is meeting, as I write this, in Spokane WA visiting a member of our Top 5% Group.
- The Top 7% Group is meeting in St. Louis, MO, visit a member of the group.
- The top 5% Group is meeting in South Bend, IN and Notre Dame University.
To set up a conversation, and visit a CEO Mastermind Group, visit:
Explore the Caregiver Quality Mastermind Group
In February of this year, we organized our fifth mastermind group, the Caregiver Quality Mastermind. This groups meets every month to discuss in detail strategies and insights to improve caregiver recruiting and retention. We have learned that the companies that grow their revenue in 2020 over 2019 were able to put systems in place to attract net new caregivers so they could take more clients and provide more hours of service.
We are at a point right not, where every nearly member of our CEO and CQA Mastermind Groups are having to turn away new clients because of the caregiver shortage. The faster growing companies have created systems that work so they can find and keep caregivers and accept new clients.
To explore membership in the CQA Mastermind Group, visit: