Guide to Selling a Sports Medicine & Performance Therapy Practice in Mississippi

The Mississippi market for Sports Medicine & Performance Therapy practices is active. Strong market demand and a growing need for physical therapy create a promising opportunity for owners considering a sale. However, turning that opportunity into a successful exit requires strategic preparation. This guide provides key insights into the current market, valuation drivers, and the sale process to help you navigate your transition with confidence and achieve your financial goals.

Market Overview

The timing for selling a specialty practice like yours in Mississippi is favorable. This isn’t just a local trend. It is part of a larger national pattern of growth and investment in physical and performance-based therapy.

A Growing Field

The national market for physical therapy is set to approach $48 billion in the coming years. Mississippi is a direct part of this growth story. Some reports project job opportunities for physical therapists in the state to grow by over 50% by 2030. This high demand signals a healthy, expanding industry, which is exactly what sophisticated buyers look for. They are seeking to invest in fields with strong, sustainable futures.

The Independent Practice Advantage

You may have heard that large groups are buying up practices. That is true, but it is not the whole story. Independent practices are not disappearing. In fact, a well-run, physician-led practice with a strong local reputation is a prime target for acquisition. Buyers are often looking for the very things that make you successful: a loyal patient base, strong community ties, and a unique approach to care. This makes your independence a strength, not a weakness.

Key Considerations for Your Practice

Your Sports Medicine and Performance Therapy practice has unique qualities that buyers will examine closely. Understanding how these factors are perceived is the first step toward positioning your practice for a premium valuation. Here are a few key areas to consider:

1. Your Referral Network. Where do your patients come from? A diversified mix of referrals from orthopedic surgeons, primary care physicians, local sports teams, and direct marketing is a sign of a stable, healthy business. A heavy reliance on a single source can be seen as a risk.
2. Provider Team. Is the practice’s success tied entirely to you, the owner? Buyers pay a premium for practices with a strong team of therapists and a system that does not depend on one person. An associate-driven model signals scalability and a smoother transition.
3. Service and Payer Mix. Many performance therapy practices have a healthy cash-pay component for services like wellness programs or specialized training. This is a strength. We help you present this high-margin revenue in a way that buyers understand and value, balancing it against your stable, in-network insurance contracts.
4. Technology and Equipment. The use of modern technology, from wearable tech for monitoring athletes to advanced rehabilitation equipment, demonstrates a forward-thinking practice. It is a key selling point that can differentiate you from competitors.

Market Activity and Buyer Landscape

The strong market has attracted different types of buyers, each with unique goals. Knowing who they are and what they want is critical. Selling to a local competitor is very different from partnering with a private equity group. Running a process that attracts multiple types of buyers is how you create the competitive tension needed to maximize your value.

The Strategic Acquirer

This is often a larger regional practice or a local hospital system. They want to expand their geographic footprint or add a new service line. For them, your practice’s patient list and referral sources are highly valuable. They are buying for strategic growth and market share.

The Financial Buyer

This group includes private equity (PE) firms and other investors. They are not therapists. They are business experts looking for well-run practices to use as a “platform” for future growth. They see your practice as an investment. They want a strong management team, clean financial records, and clear opportunities to grow EBITDA. A partnership with this type of buyer can often provide significant resources for expansion and a potential second payout down the road.

The Sale Process at a Glance

Selling a medical practice is a structured process, not a single event. The best outcomes are achieved when you start preparing 12 to 24 months before you plan to sell. This gives you time to get your financials in order and optimize the business to attract the best buyers. Here is a simplified look at the key stages.

What Is Your Practice Really Worth?

A practice’s value is more than just a percentage of its revenue. Sophisticated buyers value your practice based on its profitability and future growth potential. The most important metric is Adjusted EBITDA.

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Think of it as the true cash flow of your business. We then “adjust” it by adding back expenses that a new owner would not incur, like your personal car lease or an above-market salary. Many owners are surprised to learn their Adjusted EBITDA is much higher than their net income.

This Adjusted EBITDA figure is then multiplied by a number (the “multiple”) to determine your practice’s value. That multiple is influenced by several factors:
* Scale: Practices with higher earnings receive higher multiples because they are seen as less risky.
* Growth: A track record of consistent growth is highly attractive to buyers.
* Provider Mix: A practice that can run without its owner is more valuable than one that cannot.
* Payer Mix: A healthy balance of insurance and cash-pay services shows stability and high margins.

For a well-run practice, multiples can range from 5x to over 8x Adjusted EBITDA. Properly calculating this number is the foundation of any successful sale.

Planning for Life After the Sale

A successful sale is not just about the price. It is about ensuring a smooth transition for you, your team, and your patients. These are not afterthoughts. They are critical deal points that we negotiate from the very beginning.

Your Role After Closing

Do you want to leave immediately, or would you prefer to stay on for a few years? Your transition plan is a key part of the deal. Many owners choose to stay involved, focusing on clinical care without the headaches of running the business. We help structure a role that aligns with your personal and financial goals, whether it is for a six-month transition or a five-year partnership.

Protecting Your Team

Your dedicated staff is one of your practice’s most valuable assets. Buyers know this. A key part of any negotiation is securing the future of your team. This includes discussing their roles, compensation, and benefits with the new owner to ensure continuity of care and protect the people who helped you build the business.

Securing Your Legacy

You have spent years building a reputation in your community. Finding a buyer who respects your culture and approach to patient care is important. The right partner will not want to change what makes you successful. They will want to build upon it. We help you find a buyer whose vision aligns with your own, ensuring your legacy continues to thrive.