Guide to Selling a Home-Based ABA Services Practice in Indianapolis, IN

The market for Home-Based ABA Services in Indianapolis is strong, driven by high demand and significant state support. For practice owners, this presents a unique window of opportunity. But capitalizing on it requires more than just a growing business. It requires careful preparation, strategic positioning, and a clear understanding of what buyers are looking for today. This guide provides insights to help you navigate the process and make informed decisions for your future.

Curious about what your practice might be worth in today’s market?

Market Overview

If you own a home-based ABA practice in Indianapolis, you are in a favorable position. The demand for ABA therapy is growing nationally, supported by an impressive success rate of over 89% for children with autism spectrum disorder. More importantly, Indiana has shown incredible support for these services. State Medicaid spending on ABA therapy grew from about $14 million to an astounding $120 million in just two years. This powerful local tailwind means buyers, from private equity groups to larger strategic healthcare companies, are actively looking at the Indianapolis market. They see a stable, well-funded environment and are seeking high-quality practices to partner with.

Key Considerations for a Successful Sale

A strong market gets buyers to the table, but the specific characteristics of your practice determine the value they see. Before you begin the sale process, it is helpful to look at your practice from a buyer’s perspective. They will focus on a few key areas.

Beyond a Solo Operation

Buyers pay a premium for stability and scalability. If your practice’s success is tied entirely to you as the owner-provider, it presents a risk. Practices with multiple, well-integrated Board Certified Behavior Analysts (BCBAs) and a team of Registered Behavior Technicians (RBTs) are seen as more durable investments.

Your Payer Mix Matters

While the growth in Indiana Medicaid is a huge asset, sophisticated buyers also look for a healthy, diversified payer mix. Having contracts with multiple commercial insurance providers in addition to Medicaid demonstrates market resilience and reduces dependency on a single reimbursement source.

Documented Processes

For a home-based model, having clear, documented, and efficient operational processes is critical. This includes everything from client intake and scheduling to billing and compliance. Well-organized operations prove that your practice can run smoothly and scale effectively under new ownership.

Market Activity

Nationally, the autism therapy sector has gone through a period of consolidation. While this might sound like a downturn, it has actually created a “flight to quality.” Buyers are more discerning than ever, and they are bypassing average practices to compete for well-run, profitable ones. We are seeing this play out in Indianapolis. The intense buyer interest is not for just any ABA practice. It is for those with a strong clinical reputation, clean financials, and a clear growth story. This environment means that while a sale is not guaranteed, a well-prepared practice can command significant attention and a premium valuation.

The Sale Process

Selling your practice is not a single event. It is a structured process with distinct stages. Understanding this roadmap helps you prepare for what is ahead and avoid common pitfalls that can derail a deal. While every sale is unique, most follow a similar path.

The due diligence process, in particular, is where many sales encounter unexpected challenges.

What Is Your Practice Worth?

Valuing a medical practice is both a science and an art. At its core, the value is typically determined by a simple-looking formula: Adjusted EBITDA x a Valuation Multiple.

Adjusted EBITDA is a critical number. It is not just the profit on your tax return. It is your practice’s real cash flow, adjusted to add back owner-specific personal expenses or a higher-than-market salary. This single step can often uncover significant hidden value. The multiple is then applied to this number, and it can range widely based on factors we have discussed, like the size of your practice, provider diversity, and growth potential. For example, a practice with under $500K in EBITDA might receive a 3.0x to 5.0x multiple, while one with over $1M could command 5.5x to 7.5x or more. An accurate valuation is the foundation of a successful sale.

Post-Sale Considerations

The transaction closing is not the end of the story. It is the beginning of a new chapter, and the terms of the deal will define what that chapter looks like for you. It’s important to think through your goals ahead of time.

Defining Your Future Role

Do you want to retire immediately, or would you prefer to stay on for a few years, focusing solely on clinical work without the administrative headaches? A good deal structure is built around your personal and professional goals, ensuring a transition that works for you.

Protecting Your Team and Legacy

For many owners, the well-being of their dedicated staff is a major concern. The sale process is an opportunity to find a partner who shares your values and will continue to invest in your team. Protecting this legacy is a key part of our negotiation strategy.

The Second Bite of the Apple

Many modern deals involve “rollover equity,” where you retain a minority stake in the new, larger company. This aligns your interests with the new partner and gives you the potential for a second, often larger, payday when that company is sold again in the future.

The right exit approach depends on your personal and financial objectives.

Not sure if selling is right for you? Our advisors can help you understand your options without any pressure.