Behind the Deal: Agenda Health Advises on Clear Path Home Care Sale to Avenues Home Care

by | Jan 16, 2025 12:07 pm | Home Health & Hospice

Healthcare-focused M&A advisory firm Agenda Health announced that it has facilitated the sale of Clear Path Home Care to Avenues Home Care, a portfolio company of Capital Alignment Partners.

The transaction was announced at the end of 2024. It marks a strategic expansion for Avenues, adding six new locations in Texas and broadening its reach to 14 locations across Texas, Tennessee and Georgia. The LevinPro HC team spoke with Alex Veach, Director of Transaction Services at Agenda Health, about the firm’s role in the deal and the broader trends shaping the home care M&A landscape.

Based in Denton, Texas, Clear Path Home Care is a family owned company dedicated to providing non-medical senior home care services in North Texas. The company was founded in 2013 and specializes in 24-hour care, Alzheimer’s and dementia care, stroke care, companion care, veterans’ care and homemaker services to help with meals, laundry and everyday activities.

Avenues Home Care provides personalized homecare services for adults, seniors and veterans. The company has 14 locations across Texas, Tennessee and Georgia. Avenues Home Care was acquired by Nashville, Tennessee-based private equity firm Capital Alignment Partners in March 2024.

Austin, Texas-based Agenda Health served as the sell-side advisor for Clear Path Home Care in the transaction. As part of the engagement, Agenda conducted a competitive market process that generated multiple offers. According to Veach, Capital Alignment Partners emerged as the buyer after presenting an offer that aligned with both the financial and cultural priorities of the seller.

Veach noted that the acquisition process was smooth, with no significant challenges during the due diligence phase, and that the strong cultural fit between buyer and seller played a key role in ensuring the transaction’s success.

“One thing we feel made this transaction so smooth was the strong culture fit between buyer and seller,” Veach explained. “While value is very important in these transactions, our experience has been that partnering with a buyer that aligns culturally with the seller’s values can be just as important, which is why we run our processes in a way that optimizes for finding owners not just the highest offer, but also the right offer.”

“This transaction represents one of our strongest processes in 2024, both in terms of offer volume and offer strength,” Veach continued. “We see this as yet another indicator of a very strong home care M&A market going into 2025. There is not a better time for home care agency owners to consider an exit.”

The sale of Clear Path Home Care highlights ongoing trends in the non-medical home care sector. Strong buyer interest, driven by demographic shifts and increasing demand for home-based care, continues to propel M&A activity in this space.

The transaction also reflects the growing involvement of private equity in the home care market. Capital Alignment Partners, through its portfolio company Avenues Home Care, exemplifies how private equity firms are leveraging strategic acquisitions to build regional and national platforms.

Private equity activity has been a consistent driver of M&A in the home health and hospice (HH&H) sector. According to data captured in the LevinPro HC database, private equity firms and their portfolio companies accounted for 43% of the 93 total HH&H deals announced in 2024. This marks a slight increase from 2023, when private equity was involved in 39% of the 99 transactions. However, overall deal volume has steadily declined since the record-breaking 159 transactions in 2021, when nearly half of all deals (48%) involved private equity buyers. Despite the slowdown, private equity remains a powerful force in the market, focusing on opportunities to consolidate operators and expand services in response to rising demand for home-based care.

The non-medical home care space, in particular, has emerged as a key area of interest for private equity, thanks to its recurring revenue model, low capital requirements and growing need driven by an aging population.

“Agenda has been very active this year representing owners in transacting both to private equity investors as well as strategic buyers,” Veach said. “All of the owners that we work with have different goals in their transaction process, and we look at different types of buyers as an opportunity for us to present our clients with offers from several different perspectives, which gives them the opportunity to select the partner they feel aligns best with what they’re looking to accomplish.”

For Avenues Home Care, the acquisition is a significant step in its mission to provide veteran-centric home care services. With Clear Path Home Care’s presence in Texas, the acquisition enhances Avenues’ ability to serve seniors, veterans and families across the state. The deal also ensures continuity of care, with Clear Path’s staff remaining in place under the Avenues umbrella.

“Adding Clear Path Home Care’s multiple North Texas locations to Avenues is a tremendous step in our mission to support families and veterans seeking reliable, quality care in their communities,” said Doug Markham, CEO of Avenues Home Care, in the company’s original deal announcement.

Check out some of our recent interviews conducted with the Agenda Health team: