Guide to Selling a Sports Medicine & Performance Therapy Practice in New York

The market for Sports Medicine & Performance Therapy in New York is hotter than ever. For practice owners, this presents a significant opportunity to capitalize on years of hard work. Selling your practice, however, involves more than just a strong market. You need to navigate New York’s unique regulatory landscape and position your practice to attract the right buyers. This guide provides a clear roadmap for understanding the market, the process, and how to maximize your practice’s value for a successful exit.

Market Overview

Your practice operates in a thriving sector. The U.S. sports medicine market has grown to over $38 billion, and the closely related physical therapy services market is projected to grow steadily. Investor interest is high, and buyers are actively looking for well-run practices that deliver excellent patient outcomes and show consistent financial performance.

For owners in New York, this is not just a national trend. It is a local reality. The demand for specialized care in sports medicine and performance therapy is strong across the state. This creates a favorable environment for sellers. But a great market is only the starting point. The most successful sales depend on understanding the specifics.

Key Considerations for a New York Practice Sale

Beyond the numbers, selling your practice in New York requires careful planning around two critical areas. Getting these right is key to a smooth and successful transaction.

Navigating New York’s Legal Rules

New York has some of the country’s strictest regulations for healthcare transactions. You must provide a 30-day pre-closing notice to the Department of Health for many types of sales. There are also firm rules about who can own a medical practice and how fees can be structured. Overlooking these details can delay or even derail a deal, making expert legal and advisory guidance a must.

Managing People Through the Transition

Your practice’s value is tied to your team and your patients. A successful sale ensures continuity for both. This means managing staff morale, securing key team members, and following patient notification rules, which typically require 30 days’ written notice. A well-managed transition protects your legacy and gives the buyer confidence in the practice’s future stability.

Market Activity and Consolidation

We are seeing a clear trend of consolidation in the New York market. Larger strategic buyers and private equity-backed groups are actively acquiring successful practices to expand their footprint. We saw this with transactions like Orthology’s acquisition of NYSportsMed and Professional Physical Therapy’s purchase of Achieve Sports Medicine.

This activity is not limited to large deals. Online marketplaces show a steady stream of smaller and mid-sized practices being listed and sold. For you, this means there is a robust and diverse pool of potential buyers, from individual practitioners looking to expand to large healthcare organizations. This competitive environment can drive higher valuations, but only if you run a structured process designed to create that competition.

The 4 Stages of the Sale Process

Selling a practice can seem complex, but we find it helps to think of it in four distinct stages. Properly managing each one is the key to a smooth transaction and a premium outcome.

1. Preparation and Valuation. This is the most important phase. Here, we work with you to analyze your financials, clean up your records, and determine an accurate market value for your practice. Proper preparation here can significantly increase your final sale price.
2. Confidential Marketing. Next, we confidentially present your practice to a curated list of qualified buyers. This is not a public listing. It is a discreet and targeted process designed to find the right strategic and cultural fit while protecting your business.
3. Negotiation and Due diligence. Once offers are received, we help you negotiate the best terms. The chosen buyer will then conduct due diligence, where they verify all financial and operational details. This is where most deals encounter challenges, making thorough preparation essential.
4. Closing and Transition. The final stage involves finalizing legal documents, closing the sale, and executing the transition plan for your staff and patients.

How Your Practice is Valued

Buyers don’t value your practice based on revenue or the net income on your tax return. They look at its sustainable cash flow. The single most important metric in a practice sale is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

Think of it as your practice’s true underlying profitability. We arrive at this number by taking your stated profit and adding back owner-specific expenses like a car lease, personal travel, or an above-market salary. This adjusted number is then multiplied by a market-based multiple (e.g., 4x, 5x, or 6x) to determine the enterprise value. Getting the Adjusted EBITDA right is the foundation of a successful sale. A higher, well-documented Adjusted EBITDA translates directly to a higher sale price.

Post-Sale Considerations: Your Next Chapter

A successful transaction plan doesn’t end at the closing table. It considers your goals for the next chapter. Do you want to continue practicing? Do you want to share in the future success of the practice? The structure of the deal is a powerful tool to achieve these goals. Two common structures you should know are earnouts and equity rollovers.

These structures allow you to secure your financial future while potentially staying involved and sharing in the upside you helped create. The right strategy depends entirely on your personal and financial objectives.