New Heights for Post-Acute M&A: A Look at 2020 & What’s to Come in 2021

The 2020 Post-Acute M&A Landscape: Navigating PDGM & COVID-19

There is no doubt that 2020 brought many obstacles to the post-acute M&A landscape. There was the commencement of the Patient Driven Groupings Model (PDGM) for the home health industry and the emergence of the COVID-19 pandemic, which brought a potential to halt most M&A activity for the year. However, the combination of these hurdles also brought overwhelming interest to the post-acute industry, record-high multiples, and opportunities for providers and investors to strategically position themselves in the market.

Although the pandemic led to Q1 and Q2 delays in M&A activity, it was not capable of bringing all activity to an entire halt. The pandemic allowed the post-acute industry to show its resilience, strength, and importance as providers of all sizes across the nation quickly pivoted in response and re-positioned themselves to continue to provide high-quality care to their patients.

The spotlight on in-home care.

COVID-19 in many ways accelerated the growth of the home health and hospice market as patients were being diverted to receive care in their home verse a facility setting. At the same time, strategic players and private equity investment groups redirect their path forward on how to get the most out of 2020 and maximize the number of transactions prior to year-end. As 2020 closed, many organizations turned in their best financial year ever.

McBee Achieves Record Year in M&A


Provider, private equity, and law firm clients


Total purchase price of M&A transactions McBee assisted clients on in 2020*


Number of transactions McBee assisted clients on in 2020

In the evolving M&A landscape, partnering with the right strategic advisor is key.

McBee is honored to serve as a trusted strategic advisor to support our clients in their efforts to go-to-market or conduct buy-side clinical compliance reviews. During the 2020 calendar year, McBee supported our clients in completing 19 publicly reported transactions carrying a purchase price exceeding $1.8 billion *(based on disclosed purchase prices only). Our commitment to our clients, compliance and quality is unmatched in the industry. In Q4 2020 alone, McBee assisted their clients in completing 9 transactions. We believe this year-end flurry of activity is a catalyst to what 2021 has in store for the industry. Read our press releases below for more insight.