Southern New Jersey Home Health Care Business, Marlton NJ

$3.3M

Revenue

$883K

SDE

4.0x

Multiple

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Full Editorial Writeup

This is an established home health care agency serving southern New Jersey out of Marlton in Burlington County. The business delivers skilled nursing care, personal assistance, companionship services, and post-operative recovery support to families who want an alternative to institutional care. It has built a referral engine off hospital discharge planners and physicians in a region dense with major medical centers and affluent communities, which is the lifeblood of a home care operation.

The agency runs on roughly $3.3M in annual revenue with $883k in reported cash flow (SDE) and $896k in EBITDA, a healthy ~27% margin that is strong for a labor-intensive care business. The listing points to consistent revenue and EBITDA growth and a management team already in place, which matters because the caregiver recruiting, training, and scheduling function is where these businesses live or die. The real estate is leased, so this is a clean going-concern sale of the operating business.

The owner is retiring, and the pitch is squarely aimed at a healthcare operator or investor who wants entry into a demographically tailwinded, recession-resistant category. The aging-in-place trend and expanding senior population give this a durable demand curve, and there is stated upside in geographic expansion and new service lines. The buyer inherits established referral relationships and a trained workforce, which are the two hardest things to build from scratch in this space.

Why we like it

Earnings quality is solid for the category, with $883k SDE and $896k EBITDA on $3.3M revenue, a ~27% margin that beats most labor-heavy care agencies. The near-identical SDE and EBITDA figures suggest the owner is not carrying massive add-backs, which usually means cleaner, more transferable earnings.
The moat here is the referral network, hospital discharge planners and physicians who default to this agency for skilled nursing and post-op recovery. Those relationships take years to earn and are sticky as long as care quality holds, which insulates against a new competitor simply undercutting on price.
Demographics do the heavy lifting on the tailwind. The 65+ population is growing for the next two decades and families increasingly choose home-based care over facilities, so demand for this exact service compounds without the operator needing to manufacture growth.
There is an experienced management team already leading the caregiver workforce, which lowers the operator burden and de-risks the retiring-owner transition. A buyer inherits trained staff and established scheduling rather than rebuilding the single hardest part of a home care operation.

How to improve it

Audit the payer mix in the first 30 days and shift toward higher-margin private-pay and long-term-care insurance clients where possible. Private-pay hours carry better margins than Medicaid-reimbursed work and reduce exposure to state reimbursement rate risk.
Systematize the referral engine by building a formal outreach program with the surrounding medical centers rather than relying on informal relationships tied to the departing owner. Assign a dedicated liaison to discharge planners so the pipeline survives the ownership change.
Attack caregiver retention directly, since turnover is the number one cost and quality driver in home care. Introduce structured pay progression, referral bonuses, and scheduling tech to cut recruiting spend and protect the service reputation that drives referrals.
Expand service lines into higher-value offerings like specialized dementia care, chronic disease management, and remote monitoring. These command premium rates and deepen wallet share with existing clients without proportional new customer acquisition cost.
Pursue the stated geographic expansion into adjacent affluent southern New Jersey counties using the existing back office and brand. A second service territory leverages fixed overhead and is the clearest path to growing EBITDA beyond the current base.
Implement scheduling and billing software if not already in place to cut administrative labor and shorten the cash conversion cycle. Faster, cleaner billing improves working capital and gives clearer visibility into per-client profitability.

Diligence notes

Break down the revenue by payer source, private-pay versus Medicaid versus insurance, because reimbursement rate risk and collection timing vary dramatically. A book heavily weighted to state-reimbursed hours is worth less and more fragile than the margin suggests.
Verify licensing, accreditation, and state compliance status for the agency, since home health is heavily regulated in New Jersey. Confirm there are no open surveys, deficiencies, or licensing issues that could disrupt operations post-close.
Quantify caregiver turnover and current staffing levels versus open shifts, because unfilled hours are lost revenue and a churning workforce erodes referral quality fast. Confirm the referenced management team is contractually staying on after the retiring owner exits.
Test the durability of referral sources by pulling the client acquisition data and confirming how much volume is tied to the owner personally versus institutional relationships. Concentration in a few discharge planners or one medical center is a material risk.
Scrutinize the SDE add-backs and confirm the $883k cash flow reflects normalized owner compensation and a realistic replacement management cost. If the owner was working full time, subtract a market salary for a replacement administrator before pricing the multiple.

Source

Originally listed on BizBuySell. View original listing →