The Florida market for Sports Medicine & Performance Therapy is attracting significant buyer interest. For practice owners, this presents a great opportunity. However, realizing your practice’s full value requires careful preparation and a clear understanding of the market. This guide provides insights into the current landscape, key buyer considerations, and the steps involved in a successful sale.
Market Overview
The timing for selling a sports medicine practice in Florida is strong. We see two main factors driving this trend, creating a favorable environment for owners considering an exit.
A Growing Demand
The need for physical therapy and sports medicine is expanding. The U.S. market is projected to grow at 4.6% annually, while orthopedic surgeries, a key driver for rehabilitation, saw a nearly 30% increase recently. Florida is at the center of this growth. The state’s expanding and active population means more demand for your services, a fact not lost on potential buyers.
Favorable Demographics
Florida’s specific market dynamics add to the appeal. With a high concentration of both active young adults and a large retirement community, the patient base is diverse and consistent. Buyers, especially private equity groups, see this as a sign of stable, long-term revenue. They are actively looking for well-run practices to acquire in this thriving environment.
Key Considerations
When buyers evaluate your practice, they look far beyond the top-line revenue. They perform a detailed review to understand the health and viability of the business. Two areas receive the most attention: your financial health and your operational stability. Buyers will want to see organized profit and loss statements and clean bank records. They want to confirm the profitability you claim is accurate and sustainable.
Equally important is staff retention and your patient base. An experienced team of therapists that plans to stay after the sale is a major asset. Buyers see a stable team as a sign of a healthy culture and a well-managed practice. This reduces their post-acquisition risk. Preparing your financial records and having a clear story around your team’s strength is a critical first step.
Market Activity
The market for medical practices in Florida is not just active. It is undergoing a significant transformation driven by private equity (PE) investment. For a practice owner, this presents both a unique opportunity and a new set of challenges. Understanding these trends is key to positioning your practice effectively.
Here are a few key trends we are seeing right now:
- Strategic Consolidation: PE firms are not just buying single practices. They are “rolling up” multiple locations to build large, regional platforms. News outlets have reported on this trend across 12 states, with Florida being a primary focus for orthopedic and therapy acquisitions.
- Focus on Platforms: Buyers are looking for well-run practices to serve as a “platform” for future growth. If your practice has efficient operations and a strong brand, it could be valued at a premium as a foundational asset.
- Increased Competition: The high level of buyer interest creates a competitive environment. Running a structured sale process that brings multiple bidders to the table is the best way to leverage this competition and secure the highest possible value for your practice.
The Sale Process
Selling your practice is a multi-stage journey that goes far beyond just finding a buyer. It starts with understanding what your practice is truly worth and preparing it for the market. Then, we confidentially introduce the opportunity to a curated database of qualified buyers. This creates competitive tension to drive up value. The goal is to generate multiple offers.
From there, the process moves to negotiation, letters of intent, and finally, due diligence. The due diligence phase is where buyers verify every aspect of your business, from financial statements to regulatory compliance. This is where many deals encounter problems if the practice is not properly prepared. A guided process anticipates buyer questions and ensures you are ready, making the final steps toward closing much smoother.
Valuation
One of the first questions owners ask is, “What is my practice worth?” The answer is more complex than a simple revenue multiple. Sophisticated buyers value your practice based on its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your true cash flow after normalizing for any owner-specific or one-time expenses. From our experience, most practices are undervalued until their EBITDA is properly calculated and presented. The multiple applied to that EBITDA depends on several factors.
| Valuation Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Owner-dependent | Associate-driven |
| Revenue Source | Concentrated payer mix | Diverse, cash-pay services |
| Scale & Size | Single location, <$500K EBITDA | Multi-site, >$1M EBITDA |
| Growth Profile | Stable, no clear path to grow | Obvious expansion opportunities |
Getting an accurate, defensible valuation is the foundation of a successful sale. It ensures you negotiate from a position of strength.
Post-Sale Considerations
The day you sign the deal is not the end of the story. The structure of your sale has major implications for your future. It’s important to think about your goals beyond the final price. Do you want to retire immediately, or would you prefer to stay on for a few years? Do you want to ensure your staff and legacy are protected? These are not afterthoughts. They should be built into the deal structure from the beginning.
Modern deals often include options like retaining a portion of the equity, known as a “rollover.” This allows you to benefit from the practice’s future growth. Addressing these elements early ensures the transition aligns with your personal and financial objectives. Planning for your post-sale life is just as important as planning for the sale itself.
Frequently Asked Questions
What factors are driving the strong market for selling Sports Medicine & Performance Therapy practices in Florida?
The strong market is driven by growing demand for physical therapy and sports medicine, fueled by increasing orthopedic surgeries, and Florida’s favorable demographics, including a large active young adult population and a significant retirement community, which ensure a stable and diverse patient base.
What key aspects do buyers focus on when evaluating a Sports Medicine & Performance Therapy practice in Florida?
Buyers focus heavily on the financial health of the practice, including accurate profit and loss statements and bank records, as well as operational stability such as staff retention and the strength of the patient base. A stable, experienced team reduces post-sale risks and adds significant value.
How has private equity influenced the market for selling Sports Medicine practices in Florida?
Private equity firms are driving strategic consolidation by acquiring multiple practices to build large regional platforms. They seek well-run practices that can serve as growth platforms, creating a competitive market that enables vendors to leverage multiple bids for higher valuations.
What are some important steps in the sale process for a Sports Medicine & Performance Therapy practice?
The sale process includes understanding the practice’s value, preparing it for market, confidentially marketing to qualified buyers, creating competitive tension to generate multiple offers, negotiating terms, and thorough due diligence to confirm financial and regulatory compliance before closing.
How is the valuation of a Sports Medicine & Performance Therapy practice generally determined?
Valuation is based on Adjusted EBITDA, which reflects true cash flow after removing owner-specific or one-time expenses. The multiple applied depends on factors like provider model, revenue diversity, practice scale, and growth opportunities. Proper EBITDA calculation and presentation are crucial for maximizing value.