The market for Occupational and Hand Therapy practices in Nebraska is strong, with demand for therapists projected to grow significantly. If you own a practice, this creates a unique window of opportunity. Selling your life’s work is a major decision. This guide provides a clear overview of the market, key valuation factors, and the steps involved, helping you understand how to prepare for a successful transition and protect your legacy.
Market Overview
Nebraska presents a compelling environment for Occupational and Hand Therapy practice owners considering a sale. The market isn’t just stable; it’s growing. This growth creates a favorable landscape for sellers who are properly prepared.
Surging Demand
The data speaks for itself. Employment for occupational therapists in Nebraska is projected to climb 18% by 2030. This is significantly faster than the national average. This rising demand for services directly translates into higher potential value for established practices that can meet this need.
The Private Practice Advantage
Your outpatient clinic is exactly what many buyers are looking for. Nationally, a large portion of OTs, between 38% and 44%, work in private practice settings. This proves the model is not only viable but highly sought after.
The Power of Specialization
Hand therapy is a high-value niche. It commands respect and can attract a dedicated patient base with strong referral streams. This specialization makes your practice less of a commodity and more of a strategic asset for potential acquirers.
Key Considerations
A strong market is a great start, but a buyers final decision comes down to the quality of your practice. Before you go to market, you should focus on a few key areas. Your compliance with Nebraska’s specific licensing rules, governed by the Department of Health and Human Services (DHHS), is fundamental. Beyond compliance, your team is a primary asset. An experienced staff, especially those with advanced credentials like a Certified Hand Therapist (CHT), adds significant, measurable value and ensures continuity of care, which is a major selling point.
Equally important are your financial records and your reason for selling. Buyers need to see clean, clear financial statements to understand the health of your business. They also want to understand your motivation. A transparent, positive reason for your exit, such as retirement or a desire for a new chapter, builds trust. Preparing this narrative is as important as preparing your books.
Market Activity
The current market is not just active; it is diverse. Multiple types of buyers are looking for quality Occupational and Hand Therapy practices in Nebraska, each with different goals. Understanding their motivations is key to positioning your practice for the best possible outcome. A successful sale often depends on finding the right fit for your personal and financial goals, not just the highest initial offer. Creating a process where multiple qualified buyers compete for your practice is the best way to ensure you achieve maximum value.
| Buyer Type | Typical Motivation |
|---|---|
| Local Competitor | To expand their geographic footprint and absorb a known patient base. |
| Regional Health System | To integrate therapy services and build a stronger patient referral network. |
| Private Equity Group | To build a larger platform of clinics, improve operations, and grow aggressively. |
Sale Process
Selling your practice is a multi-stage process that works best when managed with a clear strategy. The journey typically begins long before a buyer is ever contacted. It starts with a professional valuation to set a realistic baseline, followed by careful preparation of your financial and operational documents. Only then does the marketing phase begin, where your practice is confidentially presented to a curated list of potential buyers. This leads to initial offers and negotiations to select the best partner.
After an offer is accepted, the most intense phase begins: due diligence. This is a deep dive by the buyer into every aspect of your practice, from financials and contracts to compliance and patient records. Many deals encounter problems here if the practice is not adequately prepared. A smooth due diligence process, managed by an experienced advisor, is critical to moving forward to a successful and timely closing.
Valuation
How much is your practice worth? The answer is more complex than a simple revenue percentage. Sophisticated buyers value your practice based on its true cash flow. This is often calculated as Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We calculate this by taking your net income and adding back owner-specific personal expenses or a non-market salary. This shows the practice’s true profitability. That Adjusted EBITDA figure is then multiplied by a number, or “multiple,” to determine the practice’s enterprise value. The multiple isn’t random. Its driven by specific risk and growth factors.
Four things that heavily influence your valuation multiple are:
1. Profitability and Scale. Higher, more consistent profits command higher multiples.
2. Staff and Provider Reliance. Practices that do not depend solely on the owner are less risky and more valuable.
3. Growth Potential. A clear path to future growth, whether through adding services or locations, is highly attractive.
4. Specialization. Your focus on hand therapy is a distinct advantage that can increase your multiple.
Post-Sale Considerations
Signing the final papers is not the end of the story. The structure of your deal has major implications for your future. Many transactions include components beyond cash at closing, such as an earnout tied to future performance or an equity rollover where you retain a stake in the new, larger company. These structures can offer significant upside but require careful negotiation. Just as important is how the sale is structured for tax purposes, as this can dramatically impact your net proceeds.
Beyond the financials, you need a plan for your own transition and the future of your team. Will you continue to work in the practice, and if so, in what capacity? How will your staff and patient community be supported after the sale? Ensuring a smooth transition that protects the legacy you have built is a critical part of a truly successful exit. Planning for these outcomes from the beginning is the key to being satisfied long after the deal is done.
Frequently Asked Questions
What is the market outlook for selling an Occupational & Hand Therapy practice in Nebraska?
Nebraska’s market for Occupational and Hand Therapy practices is strong and growing, with demand for occupational therapists projected to increase by 18% by 2030, outpacing the national average. This growth creates favorable conditions for sellers in this specialized therapy sector.
What key factors influence the valuation of an Occupational & Hand Therapy practice in Nebraska?
Valuation is influenced by several critical factors including profitability and scale, staff and provider reliance (practices not solely dependent on the owner are more valuable), growth potential, and specialization in niches like hand therapy which command higher multiples due to their strategic value.
What types of buyers typically purchase Occupational & Hand Therapy practices in Nebraska?
Typical buyers include local competitors aiming to expand their footprint, regional health systems looking to integrate therapy services, and private equity groups focused on building broader clinic platforms with aggressive growth plans. Finding the right buyer depends on your personal and financial goals.
What are important considerations to prepare for selling an Occupational & Hand Therapy practice in Nebraska?
Key preparations include ensuring compliance with Nebraska DHHS licensing rules, having an experienced and credentialed staff (especially Certified Hand Therapists), maintaining clean financial records, and preparing a transparent reason for selling to build buyer trust. These elements enhance practice attractiveness and valuation.
What happens after a practice sale in Nebraska, and what should sellers plan for?
Post-sale, deal structure is crucial and may include cash at closing, earnouts tied to future performance, or equity rollovers. Sellers should also plan their own transition, determine their ongoing role if any, and ensure continuity of care for patients and staff. Proper planning safeguards the legacy and maximizes satisfaction post-sale.