Guide to Selling a Pediatric Physical Therapy Practice in Charlotte, NC

The Charlotte market for pediatric physical therapy is thriving. This presents a significant opportunity for practice owners considering their next steps. However, turning a strong practice into a successful sale requires careful planning and a clear understanding of your position. Maximizing your practice’s value begins long before you list it. It starts with knowing what buyers are looking for in today’s market and how to best position your practice to meet their criteria.

Market Overview

Your practice operates within a market with powerful tailwinds. Nationally, the pediatric physiotherapy sector is on a remarkable growth trajectory, projected to expand from $46.8 billion in 2023 to over $88 billion by 2031. This isn’t just a number. It represents a growing demand for the specialized services you provide.

The Charlotte Advantage

This national growth is amplified here in Charlotte. The city’s strong demographics and vibrant community create a consistent need for pediatric physical therapy. We see a robust market that can support both traditional insurance-based models and successful cash-pay clinics. This healthy environment attracts a range of potential buyers, but it also means they come to the table with high expectations. They are looking for well-run, established practices ready for a smooth transition.

Key Considerations

Beyond the market, a successful sale depends on your specific situation. Many practice owners we work with face similar complex questions. If you are the only licensed physical therapist, how do you structure a sale to a buyer who needs a clinical leader? This “owner dependency” is a critical factor to address. Additionally, if you own your facility, you have two major assets to consider: the practice and the real estate. Deciding whether to sell them together or separately has massive financial implications. Planning for these scenarios well in advance is not just a good idea. It is fundamental to a smooth and profitable transition.

Market Activity

The strong market in Charlotte has attracted a diverse group of buyers. Understanding who they are is key to positioning your practice effectively. When you go to market, you are likely to encounter a few common buyer profiles:

1. The Entrepreneurial PT. This is often a licensed Physical Therapist, perhaps working for a larger organization, who is ready to run their own clinic. They are looking for a turnkey operation with a solid reputation and client base, much like the one you have built.
2. The Local Practice Owner. This is an owner of another Charlotte-area practice, or several, who is looking to expand their geographic footprint. They are interested in your established patient flow and experienced staff.
3. The Strategic Acquirer. This could be a larger regional or even national therapy group. They are looking for profitable, well-established practices to serve as a foothold or expansion in the desirable Charlotte market. They often bring significant resources but have very specific financial and operational criteria.

Finding the right buyer is about more than the highest price. It’s about finding the right fit for your legacy, your staff, and your personal goals.

Sale Process

Selling a practice is not an event. It is a process. It generally follows four major stages. The process begins with preparation, where you organize your financials and strategic documents. Then comes confidential marketing, where your practice is presented to a curated list of potential buyers. Once you accept an offer, you enter the most critical phase: due diligence. This is where the buyer and their team verify every aspect of your business. We find this is where many deals encounter unexpected and costly challenges. Proper preparation prevents these issues. The final stage is closing, where legal documents are signed and the transition begins. The entire process is built on a single foundation: a clear and defensible valuation.

Valuation

What is your practice actually worth? The answer is more than just a percentage of your revenue. Sophisticated buyers value your practice based on a formula: Adjusted EBITDA x a Market Multiple.

Adjusted EBITDA is your true cash flow. It is your profit after adding back owner-specific expenses like an above-market salary, personal car leases, or other non-operational costs. For a practice with $190,000 in cash flow, the key is to ensure all appropriate adjustments are made to reflect its true earning power. The multiple applied to that number depends on risk and opportunity, and small changes here can mean hundreds of thousands of dollars in your pocket.

A “rule of thumb” valuation can leave significant money on the table. A professional valuation tells the full story of your practice.

Post-Sale Considerations

The day you close the sale is a beginning, not an end. Your role during the transition period is vital for protecting the practice’s legacy and ensuring patient and staff retention. This period is often defined in the purchase agreement. The financial structure of your deal also has long-term implications. You might negotiate an earnout, where you receive additional payments based on future performance, or a rollover, where you retain a stake in the new, larger company. Each of these decisions, especially how the sale is structured for tax purposes, will have a major impact on your net proceeds. Planning for your post-sale life starts long before the deal is done.