Homewatch CareGivers, LLC was acquired by Authority Brands in late 2017. If you follow the home care industry or franchising, you may have noticed news like this about other brands too.
The fact is that the home care industry has exploded in recent years to meet the high demand: the U.S. Census Bureau predicts that by 2030, 20% of people in the United States will be over the age of 65; the U.S. Department of Health and Human Services forecasts about 70% of those age 65 and over will need long-term care services at some point. Plus, the U.S. Bureau of Labor Statistics listed direct-care workers, such as home health aides and certified nursing assistants, as one of the top five fastest growing occupations.
The financial opportunity in providing long-term care has become more apparent over the last decade and the number of senior care franchisors has increased to over 90 companies, according to FranData. As larger investment groups are looking to strategically expand their brand portfolios with growing concepts, senior care organizations are being acquired. This is great news for franchisees who are looking to benefit from more brand and buying power.
Homewatch CareGivers was founded by Paul Sauer in the 1980s and went on to be led by his daughter, Leann Reynolds. After over three decades of running the business, the family made the decision to sell to Authority Brands, a portfolio company of PNC Riverarch Capital, which they believed would be able to grow the company more aggressively in the face of increased competition.
“The talent, insight and growth orientation that the Authority Brands team brings to the partnership is tremendous,” Homewatch CareGivers, LLC CEO Julie Smith said. “We will endeavor to improve our market share, our processes and our systems.”
While each franchisee grows their business in a local market, the strength of the national brand matters. With an acquisition, there is an infusion of investment in growing the footprint, increasing brand awareness at the national level, and making improvements to technology and IT infrastructure. There is also inherent value in having other related brands within the portfolio, in terms of sharing knowledge and best practices among leadership and support teams. Cross-promotional opportunities also exist for brands that provide different services to similar clientele.
Already a trusted provider of care services, Homewatch CareGivers, LLC can now accelerate roll outs of new technology and be able to onboard and support an increase in new franchisees. An acquisition is an impressive step toward greater efficiencies for the entire network.
Learn more about becoming a senior care franchisee.