The San Diego market for home-based ABA services is dynamic, presenting a significant opportunity for practice owners considering their next steps. Selling your practice is more than a transaction. It’s the result of years of dedication to your clients and staff. This guide provides a clear overview of the current landscape, the sale process, and how to position your practice for a successful transition.
Thinking about your options is the first step. We can help you understand the landscape without any pressure or commitment.
Market Overview: An Active Environment for ABA Practices
If you’re an owner of a home-based ABA practice in San Diego, the current market is paying close attention. We’re seeing a notable level of M&A activity, driven by larger providers and investment groups looking to expand in Southern California. This creates a favorable environment for sellers who are well-prepared.
A Seller’s Market in San Diego
The regional demand for high-quality, personalized ABA services is strong. Buyers are actively seeking established practices with a solid reputation and stable client base. The recent acquisition of San Diego ABA by Alongside in May 2025 is a clear signal of this trend, showing that well-run local practices are valuable targets for larger, expanding groups.
What Buyers Are Looking For
Sophisticated buyers look past the surface. They want to see practices with documented clinical quality, strong payor relationships, and efficient operations. Your commitment to providing care in a familiar home environment is a unique advantage that is very attractive in today’s market.
Key Considerations Before a Sale
Beyond the numbers, selling your practice involves personal and operational factors. Thinking through these early on is one of the most important things you can do. Many owners we speak with are concerned about confidentiality, and rightly so. The process should always be protected by non-disclosure agreements, ensuring that conversations remain private. You may also worry that your records aren’t “perfect.” Most aren’t. We find that working with an advisor can help organize financial data and present it professionally, filling in gaps where necessary. Finally, a plan for a smooth transition for your clients and staff is not just a selling point; it’s a way to protect the legacy you’ve built. A buyer will value a practice where care and team morale can continue without disruption.
Your legacy and staff deserve protection during the transition to new ownership.
What’s Driving Market Activity?
The current energy in the San Diego ABA market is not just a feeling; it’s backed by specific trends. Understanding these drivers can help you decide if now is the right time for you to explore a sale.
- Strategic Acquisitions are Happening. As we saw with the San Diego ABA deal, established providers are expanding their footprint. They are looking for practices like yours to gain access to new neighborhoods and talented BCBAs, making it a prime opportunity for owners to capitalize on this strategic demand.
- Buyer Interest is High. There are more buyers than there are high-quality practices for sale. This competition can work in your favor, but it requires a structured process to ensure you are speaking to the right potential partners and creating a competitive dynamic.
- Valuation Multiples are Strong. A practice’s value is often expressed as a multiple of its normalized profit, or EBITDA. While multiples for smaller ABA practices can range from 3x to 6x, larger and more organized practices can command significantly higher figures. The key is demonstrating consistent growth and profitability.
The Sale Process Demystified
Selling your practice is a journey with several distinct stages. Many owners think the first step is to find a buyer, but the most successful sales begin long before that. The process generally starts with preparation, where you gather financial documents and operational data. This is when we help owners reframe their numbers to show the true earning power of their practice.
Next comes a formal valuation to establish a credible asking price based on data, not guesswork. Only then does the confidential marketing phase begin, where we identify and approach a curated list of qualified buyers. This leads to negotiation, due diligence where the buyer verifies all your information and finally, the closing. Approaching this as a structured process, rather than reacting to a single offer, almost always leads to a better outcome and protects you from common pitfalls.
The due diligence process is where many practice sales encounter unexpected challenges.
Understanding Your Practice’s True Value
One of the biggest mistakes owners make is undervaluing their own practice. You might look at your tax return’s net income, but buyers look at your practice’s true cash-generating power. This is measured by Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
We calculate this by taking your reported profit and adding back expenses that would not continue under a new owner. These “add-backs” can include discretionary spending (like personal travel), a one-time large expense (like a legal fee), or the portion of an owner’s salary that is above the market rate for a manager.
Here019s a simple example of how it works for a hypothetical ABA practice:
| Financial Metric | Amount | Why It’s Adjusted |
|---|---|---|
| Reported Net Income | $200,000 | The starting point from your P&L. |
| Add-back: Owner Salary above market | +$100,000 | A new owner would pay a clinical director a market-rate salary. |
| Add-back: One-Time Legal Fee | +$20,000 | This was a non-recurring expense that won’t happen again. |
| Adjusted EBITDA | $320,000 | This is the true profitability that buyers use for valuation. |
As you can see, the valuation base for this practice is 60% higher than the net income suggests. Understanding this number is the foundation of a successful sale strategy.
Physicians who understand EBITDA optimization typically achieve 25-40% higher valuations.
Life After the Sale
Closing the deal is a major milestone, but it019s not the end of the story. Planning for what comes next is a critical part of the process itself. For many owners, ensuring a seamless transition for their team and the families they serve is the highest priority. This is a key focus during negotiations, where we can help define the transition plan. You also need to consider your own future. Do you want to exit completely, or would you prefer to stay involved clinically for a period? Some deals include an “earnout,” where you can receive additional payments if the practice hits certain performance targets post-sale. Others might involve “rollover equity,” where you retain a minority stake in the new, larger company. This creates the potential for a second financial return when that company is sold in the future. These structures can help you meet your personal and financial goals, but they require careful thought and expert guidance to get right.
Frequently Asked Questions
What is the current market environment for selling a home-based ABA services practice in San Diego?
The San Diego market for home-based ABA services is dynamic and currently a seller’s market, characterized by active mergers and acquisitions activity. Larger providers and investment groups are seeking to expand their presence in Southern California by acquiring well-established, reputable practices with a stable client base.
What key factors do buyers look for when purchasing a home-based ABA practice in San Diego?
Buyers seek practices with documented clinical quality, strong payor relationships, and efficient operations. They value the commitment to providing high-quality care in a home environment, which is a unique advantage in today’s market.
How should I prepare my home-based ABA practice for sale to attract buyers?
Preparation involves organizing financial documents and operational data, often with an advisor’s help. Presenting your practice’s financials professionally, including adjusted EBITDA rather than just net income, is crucial. Planning a smooth transition for clients and staff also increases buyer confidence and protects the practice’s legacy.
What does the sale process for a home-based ABA practice typically involve?
The sale process includes several stages: preparation (gathering and reframing financial and operational data), formal valuation, confidential marketing to qualified buyers, negotiation, due diligence to verify information, and closing the deal. A structured approach usually leads to better outcomes and protects against common pitfalls.
What happens after selling my ABA practice, and can I remain involved?
Post-sale life can vary depending on the deal structure. Some owners fully exit, while others stay involved clinically or financially through earnouts or rollover equity. These options allow owners to receive additional payments based on performance targets or retain minority ownership stakes, providing opportunities for future financial returns.