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

The Utah market for Sports Medicine & Performance Therapy is growing, presenting a significant opportunity for practice owners. If you are considering an exit, understanding the current landscape is the first step toward maximizing your practice’s value. This guide provides a clear overview of the market, key financial metrics, and the steps involved in a successful sale. Proper preparation and strategy are critical to capitalizing on this moment and securing your legacy.

Market Overview

The timing for selling a Sports Medicine & Performance Therapy practice in Utah is excellent. The market is not just stable; it is expanding rapidly, driven by both local and national trends. This creates a favorable environment for practice owners looking to transition.

Utah’s Strong Demand

Utah’s physical therapy sector is set for significant expansion, with industry revenue projected to grow by over $300 million in the five years leading to 2025. This growth is fueled by a high demand for services, reflected in a projected 52% job growth for physical therapists in the state by 2030. For you, this means buyers see a healthy, growing patient base and a strong talent pool to support future operations.

A Favorable Business Climate

Nationally, the sports medicine market is on a steady growth track with a projected 6.6% compound annual growth rate. This national interest from buyers and investors trickles down to strong regional markets like Utah. They are actively looking for well-run practices in growth areas. Your practice is positioned in a location that buyers find very attractive.

Key Considerations

A strong market is only half of the equation. Sophisticated buyers look past the regional growth and focus intensely on the health and efficiency of your individual practice. They want to see consistent revenue, healthy profit margins (typically 14-20% in this field), and strong patient retention rates.

How you manage your finances is critical. Buyers will analyze your payroll, which often accounts for nearly half of all sales, to assess efficiency. They will also look for clean, well-organized financial records. Demonstrating a history of stable, predictable performance is more valuable than showing recent, erratic growth. Preparing these aspects of your practice long before you plan to sell can significantly improve the offers you receive. Its about proving your practice is a low-risk, high-reward investment for a new owner.

Market Activity

The growth in Utahs sports medicine sector is attracting significant attention from buyers. Here are three key trends we are seeing in the market right now.

1. Rise of Strategic Buyers: Large physical therapy platforms and regional health systems are actively acquiring practices in Utah. They are looking for well-established clinics to expand their geographic footprint. These buyers often bring resources but also want to see a practice that is already running smoothly.
2. Focus on Performance Metrics: Buyers are more data-driven than ever. They are looking beyond simple revenue and digging into metrics like provider productivity, patient acquisition cost, and lifetime value. Having this data ready can set your practice apart.
3. Search for Specialized Services: Practices with a strong niche, such as youth sports performance, concussion management, or cash-pay performance services, are drawing premium interest. Buyers see these specialized verticals as opportunities for high-margin growth.

Sale Process

Selling your practice is a multi-stage journey, not a single event. It begins long before you speak to a potential buyer. The first phase is preparation, which involves getting your financial documents in order and creating a compelling story about your practice’s future growth. Next, your practice is confidentially marketed to a curated group of qualified buyers. This creates a competitive environment to drive up value. Once offers are received, we move to negotiation, structuring a deal that meets your financial and personal goals. The final, and often most intensive, phase is due diligence, where the buyer verifies all information. A well-managed process anticipates challenges and ensures a smooth path to closing.

Valuation

Determining your practice’s value is more than a simple formula. Buyers typically value a practice based on a multiple of its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA is your true cash flow after adding back owner-specific personal expenses and normalizing salaries. For physical therapy practices, this multiple often ranges from 3.0x to over 4.5x, but where your practice falls in that range depends on several factors. A skilled advisor’s job is to build a case for the highest possible multiple.

Here are some of the key drivers that an acquirer will assess:

Post-Sale Considerations

Your journey doesn’t end the day the deal closes. Thinking through the post-sale period is a critical part of the initial strategy. You should have a clear plan for your role, if any, after the transition. Some owners stay on for a defined period to ensure a smooth handover, while others seek a clean break. These terms are negotiated as part of the deal.

Furthermore, the structure of your sale has major tax implications and determines your final take-home proceeds. You may also negotiate for things like an earnout, where you receive additional payments for future performance, or an equity rollover, where you retain a stake in the larger company. This can provide a “second bite at the apple.” Finally, a well-structured transition plan ensures your staff is taken care of and your legacy in the community is protected. Planning for these outcomes from the beginning is key to a truly successful exit.