In what has been a busy year for Austin Texas-based Agenda Health, the healthcare-focused M&A advisory firm has announced that it has facilitated yet another deal in the home health sector.
The faith-based firm recently advised on the sale of Commonwealth Nursing Solutions (CNS), a Kentucky-based home health company. The sellers, a group of retiring owners, sought a buyer with industry expertise and a shared commitment to delivering exceptional client care. The transaction, which closed in Q4 2024, highlights Agenda Health’s ability to manage complex processes and align stakeholders’ goals effectively.
“Our team engaged with CNS early in 2023 and fostered a relationship through most of the year prior to CNS deciding to go through a formal valuation in Q4,” said Nikolas Lingle, M&A Advisor of Agenda Health, who worked on the deal. “We launched a formal process in Q1 of this year and received multiple offers over the next several weeks. CNS accepted an offer in Q2.”
As with many transactions in the healthcare space, the process presented unique challenges. One significant hurdle was navigating Kentucky’s Change of Ownership (CHOW) process. Unlike many states, Kentucky requires proof of closing before the CHOW can be approved, introducing an element of uncertainty to the transaction.
“The trickiness lies within not being guaranteed that the state will approve the CHOW even though the closing has already taken place,” explained Lingle. “While the risk is small, the parties were able to come to terms on a way to navigate the nuance and achieve a successful closing.”
Despite these challenges, when we spoke to the sellers, they expressed satisfaction with the outcome and the role Agenda Health played in facilitating the deal. The retiring owners were particularly impressed with the diligence and consideration the firm brought to the process.
“Agenda Health was very considerate of my wishes in looking for an appropriate buyer,” said Barbara Newton, one of the owners of CNS. “They worked diligently to bring highly qualified buyers to us.”
The decision to sell was driven primarily by the owners’ plans to retire. Having run a successful business for years, they felt it was the right time to transition ownership.
“The owners were all retired or retiring, and the company was performing well and the future looked promising for a buyer,” Newton explained.
CNS was thriving at the time of the sale, which further supported the decision to move forward with a transaction.
“We were outperforming prior years,” said Newton.
Choosing the right buyer was a top priority for the retiring owners. They focused on identifying a partner with extensive industry experience and a shared dedication to providing exceptional client care. This alignment of values helped ensure a smooth transition and the continued delivery of high-quality services to CNS’s clients.
Reflecting on the process, Newton shared advice for others in the home health sector considering a sale. Her experience working with Agenda Health underscored the importance of having a trusted advisor to guide them through the M&A process.
“I highly recommend Agenda Health as they participated in every step of our sale,” said Newton.
This latest deal reinforces Agenda Health’s reputation as a trusted advisor in the healthcare market, adept at delivering results while helping both buyers and sellers navigate the intricacies of healthcare M&A.
This has been a record-breaking year for Agenda Health, which has achieved success by emphasizing a client-centered approach and strategic diversification into emerging markets such as Med spas and behavioral health. These efforts, highlighted in Defying Trends: How Agenda Health is Achieving Record-Breaking Success in a Challenging Market, have enabled the firm to navigate a difficult M&A landscape characterized by rising interest rates and operational challenges. By fostering strong relationships and adapting to buyer needs, Agenda Health has sustained its momentum and maintained its leadership in the industry.
