After being involved in numerous home care transactions—some successful, some not—I've seen patterns emerge. These are the mistakes that cost owners money, delay deals, or kill them entirely. Avoid them.
Mistake #1: Waiting Until You're Burned Out
The worst time to sell is when you're exhausted and just want out. Buyers sense desperation. Your energy affects negotiations, due diligence, and transition planning. Start exploring options while you still have gas in the tank.
Mistake #2: Not Knowing Your Numbers
"I think we did about $3 million last year" doesn't cut it. Buyers want clean financials, clear add-backs, and documented revenue by payer source. If you can't produce this quickly, you look unprepared—and buyers adjust their offers accordingly.
Mistake #3: Overvaluing Based on Revenue, Not Profit
A $5 million agency with 5% margins is worth less than a $3 million agency with 15% margins. Buyers pay multiples of earnings (SDE or EBITDA), not revenue. Understanding this distinction is fundamental to realistic expectations.
Mistake #4: Concentration Risk (Clients, Referrals, or Staff)
If 30% of your revenue comes from one referral source, or one key employee manages all your relationships, buyers see risk. They'll either discount their offer or structure earnouts around retention. Diversify before you go to market.
Mistake #5: Talking to Only One Buyer
Competition creates value. When multiple buyers are interested, you have leverage. When you're negotiating with just one, they know it. Even if you have a preferred buyer, having alternatives strengthens your position.
Mistake #6: Neglecting the Business During the Sale Process
Deals take 6-12 months. If your numbers decline during that period, buyers will re-trade or walk. Keep operating as if you're not selling. The best deals close when the business is still performing.
Mistake #7: Not Getting Professional Help
You built a successful business. That doesn't mean you know how to sell one. M&A advisors, transaction attorneys, and CPAs with deal experience pay for themselves many times over. This is not the place to DIY.
The Good News
Every one of these mistakes is avoidable with preparation and the right guidance. Start by understanding where you stand today—your realistic value range, your readiness gaps, and what you'd need to address before going to market.