One of the most common questions from home care agency owners considering a sale is deceptively simple: “How long will this take?”
The honest answer: from the moment you engage an M&A advisor to the moment funds clear your bank account, a home care agency sale typically takes 6 to 12 months. Some transactions close faster — particularly smaller agencies with clean financials and motivated buyers. Others take longer — especially if due diligence uncovers issues, regulatory approvals are required, or buyer financing is complex.
Understanding the timeline is critical for planning purposes. If you are planning to sell in 2026, you need to start the process now. Decisions made in the next 30 days will determine whether you close in Q4 2026 or push into 2027.
This guide walks you through every stage, how long each takes, and what you can do to accelerate without sacrificing outcome.
The process begins when you sign an engagement letter with your M&A advisor. This phase is not visible to buyers — it is entirely internal — but it is the foundation of everything that follows.
What happens:
Why it takes this long: The CIM is a 40–80 page document that tells your agency’s story in the most compelling, accurate way possible. A week’s work on the CIM often translates to hundreds of thousands of dollars in additional offer price, because it shapes how buyers model your business before they ever speak to you.
Common issue at this stage: Disorganized financials. If your last three years of P&Ls and tax returns are not clean and readily available, your advisor will need additional time to reconstruct them. This is the #1 cause of delayed launch.
Once materials are finalized, your advisor contacts all pre-qualified buyers — simultaneously and confidentially. Buyers sign NDAs to receive the CIM.
What happens:
Typical response rates: In a well-run process with a relevant buyer list, 30–50% of contacted buyers will execute an NDA and review the CIM. Of those, 10–25 will express meaningful interest and advance to the next stage.
Buyers who reviewed the CIM and want to learn more are invited to a management presentation — typically a 60–90 minute video call where you and your leadership team present the business and answer buyer questions directly.
What happens:
Seller preparation: This is your most important performance in the process. An experienced advisor will help you prepare, anticipate tough questions about census trends, compliance history, and key dependencies, and coach you on how to present the business in its strongest possible light — accurately.
After management presentations, buyers submit Indications of Interest (IOIs) — non-binding written offers that specify a valuation range, deal structure, and key assumptions. Your advisor reviews all IOIs and selects the best candidates to advance to a final bid round.
Final bids come in as Letters of Intent (LOIs) — more specific, binding-in-intent offers that specify price, structure, earnout terms (if any), due diligence requirements, and exclusivity period.
What happens:
Key decision point: Signing an LOI typically initiates an exclusivity period — usually 45–90 days — during which you cannot negotiate with other buyers. Your advisor should ensure the LOI is as complete and precise as possible before you grant exclusivity, because it becomes the baseline for the purchase agreement.
Due diligence is the buyer’s thorough investigation of every aspect of your business. It is the longest single phase of the transaction and the most intensive for sellers.
What buyers examine:
Financial due diligence:
Operational due diligence:
Clinical and regulatory due diligence:
Legal due diligence:
Most buyers hire outside accountants (Quality of Earnings firm), a healthcare regulatory attorney, and sometimes an operational consultant to conduct parallel workstreams.
Virtual Data Room: All due diligence documents are organized in a secure online portal (data room) that your advisor manages. A well-organized data room significantly accelerates due diligence.
What delays due diligence:
While due diligence is underway, the buyer’s attorneys draft the Asset Purchase Agreement (APA) or Stock Purchase Agreement (SPA). This is the legally binding document that governs the transaction.
Major negotiated terms include:
R&W Insurance: Most transactions above $5M now use Representations and Warranties (R&W) insurance — a policy that covers claims arising from seller breaches rather than requiring large escrow holdbacks. This significantly reduces the risk that post-close claims will claw back your sale proceeds.
Medicare and Medicaid certified agencies require CMS notification and/or approval for ownership changes. In many states, your state Medicaid license and home care operating license also require change-of-ownership (CHOW) approval.
The CHOW process runs concurrently with due diligence and APA negotiation, but it can be the rate-limiting step for close — particularly in states with slow licensing processes.
States with notoriously long CHOW timelines: California, New York, Illinois, and Pennsylvania can take 4–6 months for Medicaid CHOW approval. In these states, experienced buyers and advisors will file CHOW applications immediately after LOI execution.
Once due diligence is complete, the APA is signed, and all regulatory approvals are received, closing can proceed.
At close:
The wire typically clears within 24–48 hours of the closing call.
| Phase | Typical Duration |
|---|---|
| Preparation and CIM | 4–8 weeks |
| Market launch and buyer outreach | 2–4 weeks |
| Management presentations | 3–5 weeks |
| IOIs and LOI negotiation | 3–6 weeks |
| Due diligence | 6–12 weeks |
| APA negotiation | 3–6 weeks |
| Regulatory approvals | Running concurrently (can take 4–6 months in some states) |
| Closing | 1–2 weeks |
| Total | 6–12 months |
Start preparation early. The fastest transactions we close are for sellers who spent 6–12 months before engaging us getting their financials, compliance, and operations in order. Clean businesses close faster.
Use an experienced advisor. An advisor who has closed 50+ home care transactions knows every potential snag in advance and proactively resolves issues before they become delays.
Organize your data room before launch. Buyers stall when documents are missing. Have your data room 80% complete before signing an LOI.
Choose a buyer who knows home care regulatory requirements. A strategic buyer or experienced PE platform knows how to navigate CHOW. A first-time buyer in your state will slow you down.
Don’t over-negotiate. Late-stage deal fatigue is real. Know which battles are worth fighting in the APA and which concessions can be made without meaningful financial impact.
If you are considering a sale in the next 12–24 months, the right time to begin the conversation with an advisor is now — not when you have “everything in order.” Part of an advisor’s value is identifying exactly what needs to be improved before going to market.
Schedule a confidential conversation with Hendon Partners →
Hendon Partners is a specialized M&A advisory firm for home-based care. All conversations are strictly confidential.
Newsletter
Receive new articles, EBITDA benchmark updates, and deal intelligence directly in your inbox. No spam — unsubscribe anytime.
Join 1,200+ home care executives. Unsubscribe anytime.
