In 2025, home-based care M&A activity rebounded with 105 completed transactions, reflecting renewed investor confidence despite regulatory uncertainties.

Target Overview

In 2025, the home-based care merger and acquisition (M&A) volume experienced a notable resurgence, culminating in 105 completed transactions—an increase of 21 deals compared to the previous year. This positive trend brings the transaction volume closer to pre-2024 levels recorded in 2022 and 2023, which had witnessed 110 and 111 deals, respectively.

Industry Overview

The home-based care sector in the United States is positioned for growth, especially following a tumultuous 2024, influenced by rising interest rates and macroeconomic uncertainties. As the Federal Reserve began cutting rates in Q3 2024 and continued through 2025, private equity firms found it easier to secure favorable financing, consequently bolstering M&A activity. The deal volume in 2025 mirrored the increased confidence within the sector, highlighted by diverse transactions across various segments.

The home-based care landscape is further characterized by varying dynamics across different subsectors, including hospice, home health, and non-medical home care. In particular, hospice M&A activity flourished in the fourth quarter with 16 transactions, sur