FAQ About Selling your Business to UHG

UHG offers business owners looking to divest themselves fully or partially from their company the following advantages:

• An organization led by some of the country’s most recognized senior care executives having a track record of building and running the largest senior care companies in the world.
• Healthcare leadership VS private equity / wall street leadership. Like you we understand that healthcare is a local / regional business where ethics, stability, employment security and reputation are the cornerstones to focus on in order to continue offering quality care to our population.
• Should you be looking to transition out of your company after the divestiture, we are open to discussing reasonable transition periods, considerably shorter than the traditional 5-7 years which private equity tends to demand.
• Our board brings to the table a track record of having helped over 1,000 business owners exit their businesses over the last few decades and has, in the process, invested over $50 Bn. We use this extensive track record and experience to your advantage, allowing us to make competitive offers and seamlessly guide you towards a successful transaction without wasting precious time.

Our strategy is acquiring successful companies and supporting them to become become even more profitable. We want your business to realize its potential through our investment and support; our experienced board will support you to make the tough decisions required to take your business to the next level. Should you want to step out of the business, we’ll work with you to provide continuity during a handover period. We offer the ideal succession plan for your company, ensuring its culture and legacy, as well as your employees’ job security.

The time required from initial discussions through closing varies primarily based on an agency’s understanding and readiness. The normal range is 2 to 4 months. After initial introductions and preliminary information exchange, both parties determine whether goals match and cultures are complementary. If so, a non-disclosure agreement is signed, and the reciprocal sharing of data begins. During this phase, both parties continue to get to know each other and work together to establish the terms of the deal and partnership. These and other important considerations are memorialized in a definitive (but non binding) letter of intent, which includes the intended purchase price and major substantive terms. Once the LOI is executed due diligence begins, which is a process of verification, analysis, and audit of major aspects of practice operations and finance. Concurrent with due diligence, legal agreements are drafted, and once all outstanding questions are resolved and agreements completed, we collectively determine a closing date and the first day of the partnership. Our advice is not to delay. If you are considering divesting yourself of your business, start the process today. If you are looking to retire in the next few years, now is the time to begin conversations. Get in touch while your business remains profitable and we’ll decide quickly if it’s a natural fit for our group.

As a multiple of earnings. There are standard industry expectations for the value of home health agencies. The following factors are associated with higher multiples: dominant local group with strong market share; a historical pattern of incremental, steady growth; and excellent medical & corporate leadership, recruitment and retention. The actual earnings amount is often subject to a variety of accounting adjustments called add backs, in order to get the true earnings, also called adjusted EBITDA.

Yes. When UHG shows interest in a business we do so because it’s reached a certain level of success – and you, as the leader, are a critical component of that. Many owners looking to divest themselves of their company want to stay in position and become part of UHG's team; others are seeking an opportunity to expand their role, perhaps to a regional management level. We’d encourage that approach if you’re looking to future proof your business through a divestiture, but still have the passion to grow your company to the next level. Of course, if you do want to step away, we’ll look to make sure there’s a competent management team in place, and ask for a handover period that will ensure continuity for your referral partners and employees.

• Strategic Growth: UHG helps its agencies plan for and finance strategic growth, including new locations, new ancillary services, and new equipment.
• Administrative Burden Reductions: Management time is freed up as UHG assumes responsibility for payroll, benefits management, accounts payable, and general accounting.
• Empowering technology: UHG is focused on using cutting edge technology to deliver the best clinical care at all of our locations. Our partner companies are connected via shared technology and software systems to enable operational efficiencies.
• Joining UHG’s referral network: For the benefit of our agencies, we give them access to our network of referrals, allowing them to substantially grow the number of lives under management.
• The advantage of being part of a bigger group: In an increasingly competitive industry, being part of a recognized bigger group will give your company massive leverage in onboarding new referral sources, patients, as well a the best employees.
• Preparation for Managed Care: To prepare for value-based care, UHG has established broader data collection requirements, including patient outcomes data. Our goal is to establish our value through outcomes rather than price.
• Retention of Key Personnel: UHG leadership development and succession programs help retain our best talent. We reinforces the idea that skilled, compassionate caregivers are our fundamental asset.
• Marketing: UHG provides local marketing support as well as national exposure through our website, speaking engagements, blogs, and educational materials.

We look for healthy companies that want to grow. The most important attributes are well- run, effective management; good leadership; strong financial performance; strong market share and high patient satisfaction; well-trained clinicians; common values and vision; positive, supportive, and nurturing culture; and strong referral and hospital relationships.

• Yes: Finance, accounting, banking, human resources, benefits management, information technology, data analytics, reporting, insurance, and risk management, legal and compliance.
• No: EHR, scheduling, ancillary operations, hiring/firing, staff compensation, referral relationships, hospital relationships.
• Collaboration of Agency and UHG: Marketing, professional liability, payer contracting, operational efficiencies, revenue cycle; clinical programs, quality metrics, leadership development.

Any issues discovered during the due diligence process (e.g. HIPAA, IT security, etc.) will have to be corrected. Any business practices in violation of state or federal regulatory requirements will be corrected. Accounting and financial performance reporting will be established. UHG’s operations team will conduct an assessment and suggest areas of improvement. Growth initiatives and investment decisions will need to include UHG. In addition, we will want to work with the agency leadership to develop a long-term strategy inclusive of a succession plan and assure that they have access to leadership development programs and materials.

Many opportunities are available. As we grow, UHG needs additional leadership at both regional and national levels. In addition, we may offer positions on our Board of Directors.

Opportunities are based on geography. We fold small agencies into existing UHG anchor groups or use them to expand adjacent geographic coverage.