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    How to Sell a Home Care Business in Texas

    Texas home care agencies are selling at 2.5x - 3.1x their annual profit, with very high buyer activity across the state. Here's what you need to know.

    Texas
    2.5x - 3.1x Multiple
    $800,000 – $6,000,000
    Very High Buyer Activity

    Texas Home Care Market Snapshot

    2.5x - 3.1x

    Profit multiple

    $800,000 – $6,000,000

    Typical value

    Agencies statewide

    Very High

    Buyer activity

    What Makes Texas Unique

    Texas has the second-highest number of home care agencies in the US, driven by its large population, lack of significant regulatory barriers, and business-friendly environment.

    The Dallas-Fort Worth metroplex is the most active home care M&A market in Texas, with PE-backed platforms and national franchise groups aggressively consolidating independent agencies.

    Houston's massive and diverse population supports high patient volume, but agencies must navigate a complex payer mix that includes significant Medicaid-funded personal care through the STAR+PLUS program.

    No state income tax makes Texas highly attractive for home care agency sellers and buyers alike, providing favorable economics for transaction structuring.

    Texas faces a persistent caregiver shortage, particularly in the DFW and Houston metros, where competition from retail and hospitality sectors drives up wages and increases turnover rates for home care aides.

    Texas Home Care Regulations

    Texas requires non-medical home care agencies to be licensed by the Health and Human Services Commission (HHSC) as Personal Assistance Services (PAS) agencies. The state has a business-friendly regulatory environment with no Certificate of Need requirements.

    Texas requires non-medical home care agencies to be licensed by HHSC as Personal Assistance Services (PAS) providers.

    The HHSC conducts regular surveys and complaint investigations, and requires criminal background checks for all direct care workers.

    No Certificate of Need is required for non-medical home care agencies, Texas allows open market entry for licensed PAS providers.

    Texas Medicaid covers personal care services through the STAR+PLUS managed care program, with the Community Attendant Services (CAS) benefit funding in-home assistance for eligible beneficiaries.

    How to Sell Your Home Care Business in Texas

    1. Get a Current Valuation

    Before anything else, know your number. Your agency's value is based on how much profit it makes in a year - after you add back things like your personal salary and expenses that a new owner wouldn't have. That adjusted profit gets multiplied by 2.5x - 3.1x to get your value.

    Our free valuation calculator gives you a range in about 2 minutes - no email required, no strings attached. It factors in your revenue, client census, private pay mix, and Texas-specific market conditions.

    2. Focus on Caregiver Retention

    Caregiver turnover is the biggest concern for home care buyers. If your team stays, clients stay - and that means steady revenue after the sale. Start tracking your retention rate and building systems that keep your caregivers happy and engaged.

    Buyers in Texas pay more for agencies that have low turnover, a strong recruiting pipeline, and documented training programs. Even small improvements here can raise your sale price.

    3. Prepare Your Agency for Market

    Buyers look at the same key areas no matter the size of your agency:

    • Private pay mix - agencies with a high percentage of private pay clients get the best multiples
    • Client census - active client count, average hours per client, and growth trends
    • Caregiver retention - low turnover signals a stable, transferable business
    • Systems documentation - scheduling, billing, HR, and care plans should be written down and repeatable
    • Medicaid waiver contracts - active contracts with state waiver programs add reliable revenue streams
    • Clean financials - 3 years of tax returns and profit & loss statements

    Want to see where your agency falls?

    Our free calculator factors in your revenue, profit, and Texas market conditions.

    4. Know Your Buyer Options

    In Texas, you have four main buyer types - listed here by who typically pays the most:

    Highest Multiples

    PE-Backed Platforms

    The top of the 2.5x-3.1x SDE range; larger agencies priced on EBITDA trade at about 3.5x-5.8x EBITDA. Best for agencies with strong private pay revenue and $1,000,000+ in sales.

    Best for Most Sellers

    National Home Care Groups

    Within the 2.5x-3.1x SDE range. They know the industry and close reliably in 60-90 days.

    Growing Segment

    Regional Operators

    Within the 2.5x-3.1x SDE range. They want to expand their local footprint and add your client base.

    Traditional Route

    Individual Buyers

    Within the 2.5x-3.1x SDE range. Often SBA-financed. Clean exit with a 30-60 day transition.

    Not sure which buyer type is right for you? Book a free call and we'll walk you through your options based on your specific agency.

    5. Timeline and What to Expect

    From first conversation to closing, expect 4-9 months. The process: valuation (week 1) → preparation and marketing (weeks 2-6) → buyer matching and LOIs (weeks 6-12) → due diligence and license transfer (weeks 12-24) → closing (weeks 24-36). Agencies in Texas with strong caregiver retention, steady client census, and clean financials often close faster, especially with PE-backed buyers.

    Frequently Asked Questions

    What is my home care business worth in Texas?

    Home care agencies in Texas typically sell for 2.5x - 3.1x their annual profit, with values ranging from $800,000 – $6,000,000. Things like your private pay mix, client census, caregiver retention rate, and buyer competition all affect the final number. Use our free valuation calculator for a personalized estimate.

    Who is buying home care agencies in Texas?

    Active buyers in Texas include private equity platforms, national home care groups, regional operators, and individual buyers. Buyer activity in Texas is very high, meaning sellers can expect competitive offers from multiple buyers.

    What are Texas's home care regulations for a sale?

    Texas requires non-medical home care agencies to be licensed by the Health and Human Services Commission (HHSC) as Personal Assistance Services (PAS) agencies. The state has a business-friendly regulatory environment with no Certificate of Need requirements. Texas requires non-medical home care agencies to be licensed by HHSC as Personal Assistance Services (PAS) providers. The HHSC conducts regular surveys and complaint investigations, and requires criminal background checks for all direct care workers. No Certificate of Need is required for non-medical home care agencies, Texas allows open market entry for licensed PAS providers. Texas Medicaid covers personal care services through the STAR+PLUS managed care program, with the Community Attendant Services (CAS) benefit funding in-home assistance for eligible beneficiaries.

    How long does it take to sell a home care agency in Texas?

    The typical timeline to sell a home care agency in Texas is 4-9 months from listing to close. Agencies with clean financials, strong caregiver retention, steady client census, and documented systems close faster. Private equity buyers can sometimes close in 60-90 days if the agency is well-prepared.

    One important decision. Two good places to start.

    What's Your Texas Home Care Agency Worth?

    Free. Confidential. Takes about 2 minutes. No email required.

    I want to understand my value

    Start with your numbers.

    Get an initial range and a clearer starting point for your plans.

    Get my valuationYour private report. No commitment to sell.
    I want to talk through my options

    Start with a dedicated advisor.

    Discuss your goals, timing and questions in a private conversation.

    Talk to your advisor45 minutes. Free. No obligation.

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