Case Study
Home Healthcare Franchise Sold with Full Client Continuity
The Situation
The owner of a Visiting Angels franchise in North Central Massachusetts had spent years building a trusted home care agency serving seniors and families throughout the region. As a franchise operator, the business came with the backing of a national brand but required strong local relationships and hands-on management. The owner was ready to retire and needed a buyer who could continue the high standard of care the agency was known for.
She engaged Diversified Business Advisors to market the business confidentially and find the right successor.
The Challenge
- Franchise transfer — Any sale required approval from the franchisor and compliance with franchise transfer requirements
- Relationship-based business — Clients chose the agency based on trust; a transition that felt abrupt could cause client流失
- Smaller deal size — At ~$1.2M revenue, finding a qualified buyer willing to take on a franchise operation required targeted outreach
- Owner involvement — The owner was deeply involved in day-to-day operations, requiring a transition period
The Approach
- Pre-sale review — Audited the franchise agreement to understand transfer requirements, fees, and timing
- CIM & valuation — Built a Confidential Information Memorandum highlighting the agency’s strong reputation, loyal client base, and growth potential in the aging-in-place market
- Buyer qualification — Screened potential buyers for healthcare experience, financial capacity, and cultural fit — knowing the clients’ care couldn’t be disrupted
- Franchisor coordination — Worked alongside the Visiting Angels corporate team to ensure a smooth transfer approval process
- Negotiation & closing — Guided both parties through LOI, due diligence, and Asset Purchase Agreement, including proper asset allocation for Form 8594
The Result
Sold to an individual operator who stepped in to continue the agency’s mission. The seller transitioned out over an agreed period, and all active clients were retained under new ownership. The deal closed in August 2025 with a clean transition.
Key Metrics
Key Details:
- Deal structure: Asset purchase
- Franchisor approval required and obtained
- Transition period included in deal terms
- Advisor: Joshua Meltzer, CBI, CFP, CMSBB, CEPA