The market for Occupational Therapy in Texas is dynamic. An increasing demand for services and growing buyer interest create a significant opportunity for practice owners like you. Selling your practice is more than a transaction. It’s a major milestone that requires careful planning. We created this guide to provide clarity on valuing your practice, understanding buyer expectations, and navigating the Texas market for a successful transition.
A Growing Market with New Opportunities
The decision to sell your practice happens within a larger market context. In Texas, the conditions are unique and promising for Occupational Therapy owners who are well-prepared.
Strong Demand for Services
Texas is seeing a significant increase in the number of licensed Occupational Therapists. This growth is a direct response to rising demand across various settings, from pediatrics to geriatrics. For a practice owner, this signals a healthy, active market. It confirms that the services you provide are valued and needed, which is a foundational element for interested buyers.
The Evolving Buyer Landscape
The buyers are changing, too. Beyond individual practitioners or local competitors, we are seeing more sophisticated buyers entering the market. Private equity firms and larger healthcare organizations are actively looking for well-run OT practices to invest in. These buyers have specific criteria. They look for strong financial performance and documented operational systems.
What Buyers Look for in a Texas OT Practice
A strong market is a great starting point. Your practice’s specific attributes are what will ultimately attract the right buyer and secure a premium valuation. Buyers in Texas pay close attention to regulatory compliance. Your adherence to the Texas Occupational Therapy Practice Act and rules from the Texas Board of Occupational Therapy Examiners (TBOTE) is not just a matter of good practice. It is a key point of due diligence. Buyers want to see a business with clean, well-documented operations, from patient treatment protocols to billing processes and staff licensure. Proving this level of professionalism reduces perceived risk and makes your practice a much more attractive acquisition target.
3 Trends Driving Value in the Texas OT Market Today
While every practice is unique, we see clear patterns in what buyers are willing to pay a premium for. Understanding these trends is the first step in positioning your practice for a successful sale.
-
A Focus on Financial Clarity. Buyers today move beyond a simple profit and loss statement. They want to see clean financials where they can easily identify the Seller’s Discretionary Earnings (SDE) or EBITDA. This means having your numbers organized and ready for scrutiny. Practices that have done this work ahead of time consistently achieve better outcomes.
-
The Premium for Specialization. A general OT practice is valuable. A practice with a strong, defensible niche in an area like pediatrics, home health, or industrial rehabilitation can be even more so. Buyers see specialization as a competitive advantage and a source of stable, high-margin revenue.
-
Proof of Smooth Operations. Buyers are not looking to buy a job or fix a broken business. They are looking to acquire a smooth-running system. This means having documented procedures for everything from patient intake to billing. Well-documented operations signal a mature, low-risk business.
Navigating the Path to a Successful Sale
Many owners think selling a practice starts with finding a buyer. In our experience, that comes much later. A successful sale is the result of a structured process that begins long before your practice is on the market. It starts with preparation. This involves getting your financial and operational documents in order. Next comes a comprehensive valuation to understand what your practice is truly worth. Only then do we begin a confidential marketing process to find the right buyers. The most critical stage is often due diligence, where the buyer inspects every aspect of your business. Proper preparation is what makes this stage a smooth confirmation, not a source of deal-breaking surprises.
How Is an Occupational Therapy Practice Valued?
One of the biggest questions owners have is, “What is my practice worth?” The answer is more complex than a simple multiple of revenue. Sophisticated buyers value your practice based on its Adjusted EBITDA. This is your earnings before interest, taxes, depreciation, and amortization, with adjustments for owner-specific expenses. This number demonstrates the true profitability of your business. That Adjusted EBITDA is then multiplied by a number (the multiple) that changes based on risk and growth potential. A professional valuation goes beyond formulas. It tells a story about your practice’s strengths.
| Factor | How It Typically Impacts Value |
|---|---|
| Adjusted EBITDA | The higher your normalized profit, the higher the base value. |
| Payer Mix | Stable insurance contracts are often valued over less predictable cash-pay models. |
| Staff & Tenure | A strong, tenured team of therapists reduces reliance on the owner. This increases value. |
| Referral Sources | Diverse and consistent referral streams signal a stable, low-risk business. |
Planning for Your Life After the Sale
The day you sign the closing documents is not the end of the journey. It is the beginning of a new chapter for you, your staff, and your legacy. Thinking about this future during the sale process is critical. A successful transition plan ensures patient care continues smoothly and your team feels secure. The structure of your deal also has big implications. Some owners want a clean break, while others prefer to “roll over” some of their equity, keeping a stake in the new, larger company. This can provide a second financial windfall down the road. The right choice depends entirely on your personal goals. Protecting your legacy requires planning for it from the start.
Frequently Asked Questions
What is the current market demand for Occupational Therapy practices in Texas?
Texas is experiencing a significant increase in demand for Occupational Therapy services, with a growing number of licensed Occupational Therapists responding to needs across various settings such as pediatrics, geriatrics, and more.
What do buyers in Texas typically look for when purchasing an Occupational Therapy practice?
Buyers focus on regulatory compliance with the Texas Occupational Therapy Practice Act and the Texas Board of Occupational Therapy Examiners (TBOTE), clean and documented operations including treatment protocols and billing, and a professionally run business that reduces perceived risk.
How is the value of an Occupational Therapy practice determined in Texas?
Practice value is primarily based on Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization, adjusted for owner-specific expenses). The valuation also considers factors such as payer mix, staff tenure, and referral sources, which impact the practice’s risk and growth potential.
What are some trends that drive higher value for Occupational Therapy practices in Texas?
Higher value is driven by financial clarity, including well-organized financials that highlight Seller’s Discretionary Earnings (SDE) or EBITDA, specialization in niche areas like pediatrics or industrial rehab, and evidence of smooth, documented business operations.
What steps should a practice owner take to prepare their Occupational Therapy practice for sale in Texas?
Preparation involves organizing financial and operational documents, conducting a comprehensive valuation, and undergoing due diligence to ensure all aspects of the business are transparent and well-documented. This structured process helps avoid deal-breaking surprises and attracts the right buyers.