As an occupational therapy clinic owner, you might be wondering what the future holds for your practice. Whether you're planning for retirement, approached by a buyer, or thinking about growth through acquisition—these quick answers can help guide your next step.
Q1: How do I prepare to exit my practice? Can I sell it?
Yes, you can sell your practice—if you're prepared. The most valuable therapy practices have clean financials, strong referral networks, and a dependable clinical team. Preparing to sell includes:
- Getting a Market Opinion of Value (MOV): This helps you understand what your business is worth in today’s market based on revenue, SDE (Seller Discretionary Earnings), and buyer demand.
- Normalizing your books: Make sure your financials accurately reflect owner compensation and business expenses.
- Retaining key staff: Buyers value continuity and a team that’s likely to stay post-sale.
- Preparing documentation: This includes contracts, leases, compliance records, and referral reports.
Q2: How do I grow through acquiring existing clinics as an OT therapy practice?
Growth through acquisition could be option to expand your footprint and market share—especially if you’re in a competitive region.
- Identify compatible targets: Look for clinics with a similar treatment philosophy, patient population, or EMR system.
- Secure financing: This could be SBA loans, seller financing, or private equity if you’re scaling aggressively.
- Negotiate carefully: Be clear about what you’re acquiring—patient lists, contracts, goodwill, or just equipment.
- Plan the integration: Merging operations, teams, and billing processes is just as important as the deal itself.
Growth through acquisitions may not be the right move for all OT practice owners and may involve substantial risk. Consulting with your professional team, including a CPA, an attorney, and an M&A advisor, is crucial in successfully growing through an acquisition.
Q3: Someone approached me about buying my practice. What should I be thinking through?
Take a step back and evaluate before jumping into negotiations.
- Have you protected your data? Use a Non-Disclosure Agreement (NDA) before sharing any confidential information.
- Is the buyer financially qualified? Ask for proof of funds or background in healthcare ownership.
- Do they understand your business model? Selling to someone unfamiliar with therapy practices can lead to post-sale issues.
- What’s your walk-away number? Know your financial goal, but be ready to justify it with your Seller Discretionary Earnings (SDE) and business metrics.
- Do you want to stay involved post-sale? Some buyers ask sellers to stay on for a transition period or consulting agreement.
Having representation on your side can help you evaluate offers and protect your interests.
Q4: How much is my therapy practice worth?
Valuation isn’t just about revenue—it's about risk and cash flow. The most common valuation method for therapy clinics is a multiple of Seller’s Discretionary Earnings (SDE), adjusted for risk factors like payer mix, staff retention, growth potential, and how dependent the business is on the owner.
Qualified professionals can help you provide a valuation based on the above factors to establish a range you should consider.
- Clinics with strong recurring referrals, diversified payers, and minimal owner involvement will generally command higher multiples.
- Practices relying heavily on the owner, a single referral source, or out-of-date documentation processes may sell for less.
Getting a professional Market Opinion of Value (MOV) is the first step to understanding your specific valuation range.
Q5: Who can help me navigate acquisitions or selling my business?
An M&A Advisor acts as your guide and negotiator throughout the sale or acquisition process. Key responsibilities include:
- Valuation & positioning: Helping you understand your clinic’s worth and prepare it to attract serious buyers.
- Marketing confidentially: Presenting your practice to vetted buyers while protecting your identity with NDAs.
- Negotiating offers: Ensuring deal terms protect your interests—beyond just the sale price.
- Managing the deal process: Coordinating due diligence, legal documents, and closing steps so you don’t lose focus on running your practice.
A qualified advisor brings buyers, structure, and leverage to the table—so you don’t leave money (or peace of mind) on it.
Expert Contributor: Chris Sutton, OTR | United MedCare Capital
This article was written with insights from Chris Sutton, OTR, Principal, M&A Advisor at United MedCare Capital. Chris brings over 20 years of experience as an occupational therapist who grew a practice, grew through acquisition and eventually was able to exit by selling his business. Now he specializes in helping therapy practice owners navigate the complex process of selling, merging, or growing their businesses from the unique vantage point of someone who’s done it. Through personalized exit planning, valuation services, and buyer outreach, Chris helps owners achieve successful transitions on their terms. 🔗 Connect with Chris at UnitedMedCare Capital