Home-based care M&A closings fell sharply in the third quarter of 2026, but pending transactions and continued buyer interest suggest the slowdown does not necessarily signal weakening demand.
A new Mertz Taggart report recorded 11 completed home health, home care and hospice transactions in Q3 2026 — down from 23 counted in the previous quarter. However, buyers remain willing to pay premiums for quality agencies that fit their strategies, even as longer closing timelines and other variables depress quarterly deal counts, according to M&A experts.
“Our report counts completed transactions, so the timing of closings affects the quarterly numbers,” Cory Mertz, managing partner at Mertz Taggart, told Home Health Care News. “I would not interpret a light quarter as evidence that buyers have lost interest. We continue to expect a strong Q4.”
Fort Myers, Florida-based Mertz Taggart is a sell-side M&A advisory firm focusing on healthcare services.
Of the 11 deals closed in Q3, six were sponsor-backed strategic add-ons, two were new sponsor platform investments, two were completed by other buyers, including independent operators and one came from a strategic buyer, according to the report.
The third-quarter figures mark a 52.2% decrease compared to 23 transactions in Q2 2026. By sector, six home health deals closed, along with four in home care and six in hospice.
Some deals announced in Q3 did not cross the finish line this quarter, including Addus HomeCare Corp.’s (Nasdaq: ADUS) planned acquisition of AccentCare’s personal care division for roughly $275 million. Deaconess Associations Incorporated’s (DAI) also closed its acquisition of 31 home health and hospice agencies from HCA Healthcare (NYSE: HCA) after the quarter ended.
The total number of deals could be higher than reported, according to Les Levinson, partner and co-chair of the transactional health law group at Robinson+Cole.
“Sometimes statistical reports are based upon publicly available information and if that is the case here, there may be some deals which were not accounted for various reasons,” Levinson told HHCN. “Therefore, the number of completed deals may be higher.”
Hartford-based Robinson+Cole is a law firm specializing in business transactions, health law, real estate, development and other sectors.
The report described a more selective buying environment. Buyers are taking a closer look at agencies’ compliance histories, documentation and leadership depth during due diligence — factors that are increasingly important to buyers in 2026.
“I can say with certainty that buyers are paying premiums for quality agencies that have strategic value to them,” Mertz said. “For an owner, the important distinction is that buyer demand is selective — not absent.”
Mertz added that agencies do not need national reach for the right buyer to find them strategically important.
“Reliable financials, sound compliance and a strong team help establish the quality of the business. How that agency fits a particular buyer’s strategy is a separate part of the value equation,” Mertz said.