Navigating the complex landscape of hospice care practice acquisitions requires specialized expertise to maximize value while ensuring continuity of compassionate patient care during ownership transitions.
Hospice Care Market Overview
The hospice M&A market is experiencing a significant resurgence in 2025 after a notable slowdown during 2023-2024, creating favorable conditions for practice owners considering exit strategies. Valuation metrics vary considerably within this specialty, with EBITDA multiples ranging from 4.7x to 7.4x for the broader Senior Living sector that includes hospice care. Medium-sized multi-location practices specifically tend to command medical practice multiples between 5.6x and 8.8x, with precise valuations heavily influenced by factors such as average length of patient stay, staffing stability, and overall practice scale. Understanding your practice’s current market position is the first step toward a successful transition.
Hospice Care Practice Acquisition Trends
Private equity firms continue to dominate as major buyers in the hospice care space, maintaining their strategic consolidation efforts despite regulatory headwinds. The current landscape presents both challenges and opportunities, including increased regulatory auditing, strict enforcement of the CMS 36-month rule, heightened fraud scrutiny, and the upcoming implementation of the new quality reporting system (HOPE tool) in October 2025. Economic conditions have improved for transactions with declining interest rates and moderating inflation creating a more favorable environment for practice owners preparing for exit or expansion through strategic acquisitions.
Understanding your hospice practice’s current market position is the first step toward a successful transition.
M&A ADVISORY
A trusted partner in delivering high-value M&A transactions and exit planning for healthcare organizations & private practices
Detailed Financial Projections
Bespoke Acquisition Strategies
Buyer Targeting and Outreach
Confidential Information Memorandums
Teaser Documents
Data Room Management
Indications of Interest (IOIs)
Letters of Intent (LOIs)
Facilitation of Management Presentations
Deal Negotiation and Closing Support
Our M&A Playbook
Simplifying the M&A process to delivery value-driven results
Preparation
- Build a compelling narrative with financial models & investor presentations
- Identify and prioritize strategic and financial buyers tailored to your goals
01
Marketing
- Present teasers and distribute CIMs to targeted buyers under NDAs
- Gather and evaluate Indications of Interest (IOIs) to identify qualified prospects
02
Initial Engagement
- Facilitate initial buyer reviews and address questions about the opportunity
- Shortlist top buyers and begin preliminary deal negotiations
03
Due Diligence & LOI
- Conduct management presentations and finalize Letters of Intent (LOIs)
- Manage virtual data rooms (VDR) and coordinate due diligence efforts
04
Closing
- Negotiate final terms and oversee confirmatory due diligence
- Execute the purchase agreement and ensure a smooth transaction close
05
Disclaimer: The steps or stages are based on investor demand and general market factors.