expression =
That's not true in the general case.
A = 1;
h0 = 1;
dhmax = 2;
B = -5;
lhs = ((2*A*dhmax + B*h0)^2/h0^2)^(1/2)
rhs = (2*A*dhmax+B*h0)/h0
If you defined those variables to all be real and positive and used sqrt (so it's the principal square root):
syms A h0 dhmax B real positive
isAlways(sqrt((2*A*dhmax + B*h0)^2/h0^2) == (2*A*dhmax+B*h0)/h0)
In that case, asking MATLAB to simplify the expression may allow it to perform the rewriting you want.