Guide to Selling an ABA Therapy Practice in Oklahoma

The market for ABA therapy practices in Oklahoma presents a significant opportunity for owners considering an exit. Strong demand for services and increasing investor interest have created favorable conditions. However, navigating this landscape to achieve the best outcome requires careful planning and a deep understanding of the market. This guide provides the insights you need to start the process.

A Strong and Growing Market

If you own an ABA therapy practice in Oklahoma, you are in a strong position. The industry is experiencing significant growth nationwide. Projections show the demand for ABA therapists will increase by 19% by 2028, and the market itself is growing at a steady 4.5% rate each year.

This growth is fueled by a simple fact: the needs of the Autism Spectrum Disorder (ASD) population remain largely underserved. For potential buyers, from private equity groups to larger strategic healthcare companies, this signals a stable and expanding investment. They are actively looking for well-run practices in markets like Oklahoma to meet this demand. Your practice is not just a local service. It is a valuable asset in a national growth industry.

Factors That Shape Your Sale in Oklahoma

Beyond the national trends, specific local factors will influence your practice’s sale. Buyers will look closely at how you manage these state-level dynamics.

1. Regulatory Compliance. Oklahoma has specific governing bodies like the Oklahoma Health Care Authority (OHCA) and the Oklahoma Licensed Behavior Analyst Board (OLBAB). A buyer will perform due diligence to ensure your practice has a perfect compliance record. Any past issues or sloppy documentation can become a major hurdle.

2. Workforce Stability. The ABA industry has a high average therapist turnover rate of 65%. While this is a known challenge, a practice that can demonstrate lower turnover or a strong, repeatable system for recruiting and training will stand out. It proves your business is resilient and not overly dependent on a few key people.

3. Payer Mix. Your blend of private insurance, SoonerCare (Oklahoma’s Medicaid program), and private-pay clients determines your revenue stability. A diversified and well-managed payer mix is a sign of a healthy, low-risk operation.

Private Equity is Shaping the ABA Landscape

The biggest trend in ABA therapy right now is consolidation. Private equity (PE) firms and large strategic buyers see the value in this sector and are actively acquiring practices to build larger platforms. You may have seen news of national groups acquiring smaller, regional players. This is happening across the country, and Oklahoma is an attractive market for these buyers.

What does this mean for you? It means you have a ready pool of well-funded, serious buyers. These are not individuals who need a bank loan. They are sophisticated investors looking for well-run practices to add to their portfolios. Selling to a PE-backed group can provide significant financial resources and growth opportunities. It also means you will be negotiating with experts, making it important to have an experienced advisor on your side to level the playing field.

Understanding the Path to a Sale

Selling your practice is a process, not a single event. Preparing well in advance is the key to a smooth transaction and a higher valuation. Here is a simplified look at the steps involved.

Step 1: Preparation and Planning

This is where you organize your financial records, review your compliance documents, and address any operational weaknesses. Most owners should start this phase 1-2 years before they plan to sell.

Step 2: Valuation

An independent, professional valuation determines your practice’s fair market value. This is based on your profitability, growth, and market position, not just a simple rule of thumb.

Step 3: Confidential Marketing

Your advisor confidentially markets your practice to a curated list of qualified buyers. This protects your staff and patients while creating competitive tension to get the best offers.

Step 4: Due Diligence

The chosen buyer will conduct a deep dive into your financials, operations, and legal standing. This is often the most intense phase. Being prepared here is critical to prevent the deal from falling apart.

How is an ABA Practice Valued?

Your practice’s value is not based on revenue. It is based on its profitability, specifically a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Think of it as your true cash flow. We calculate it by taking your net income and adding back things like owner’s discretionary spending, one-time expenses, and excess owner salary.

This Adjusted EBITDA figure is then multiplied by a “multiple” to determine the practice’s total value. The multiple isn’t random. It is based on a set of factors that measure the risk and growth potential of your practice. A higher multiple means a higher final sale price.

Getting an accurate valuation is the foundation of any successful sale.

Planning for Life After the Sale

The day you sign the papers is a beginning, not an end. A successful transaction includes a clear plan for what comes next for you, your team, and the legacy you have built. Working with an advisor helps you structure the deal to meet these personal goals.

You should consider your plan for:

• Your Legacy and Staff. How will your team be treated during the transition? The right buyer will value your clinical team and culture. This can be a key point in negotiations.
• Your Future Role. Do you want to leave immediately, or stay on for a few years? Many deals include a transition period for the owner, which can provide continued income and purpose.
• The Financial Structure. The deal may include more than just cash at closing. You might have an “earnout” (additional payments for hitting performance targets) or “rollover equity” (retaining a minority stake in the new, larger company). A rollover can lead to a second, often larger, payday down the road when the new entity is sold.