How to Sell a Hospice Business in Houston, TX

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 2.4x - 3.8x 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, patient census, payer mix, and Houston-specific market conditions.

2. Understand Texas's Regulations

Every state has its own rules around hospice licensing, Medicare certification transfers, and whether a Certificate of Need is required. Texas has specific requirements that affect how sales are structured.

If you're selling to a PE group or regional operator, your attorney should be familiar with Texas's specific requirements for Medicare provider number transfers, state license changes, and any CON implications.

3. Prepare Your Agency for Market

Buyers, whether PE platforms or individual operators, look at the same fundamentals:

• Clean financials, 3 years of tax returns and profit & loss statements
• Patient census, average daily census, admission trends, and length of stay
• Payer mix, Medicare percentage and any Medicaid or private pay revenue
• Survey history, clean surveys and no active compliance issues
• Staff stability, nurses, aides, and clinical leadership staying post-sale matters
• Referral relationships, strong hospital and physician referral networks add significant value

4. Know Your Buyer Options

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

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 6-12 months. The process: valuation (week 1) → preparation and marketing (weeks 2-8) → buyer matching and LOIs (weeks 8-16) → due diligence and Medicare transfer (weeks 16-32) → closing (weeks 32-48). Agencies in Houston with clean surveys, stable census, and strong financials often close faster, especially with PE buyers.