Selling your Occupational and Hand Therapy practice in Portland is a significant decision. The current market presents a strong opportunity, but achieving the best outcome requires a clear understanding of your practice’s value, market dynamics, and the sale process. This guide provides key insights to help you navigate this transition successfully and protect your legacy. We’ll walk you through the most important factors, from valuation to post-sale planning.
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Market Overview
The timing for practice owners in Portland is excellent. Nationally, the demand for occupational and hand therapy is growing rapidly, with employment for therapists projected to increase 11% by 2033, much faster than average. This growth is driven by an aging population and a greater focus on rehabilitative care. In Portland, these trends are amplified by the region9s strong healthcare ecosystem and favorable demographics. For practice owners, this translates into a robust and active buyer market. It has created a window of opportunity for those considering a transition. Your specialized practice is not just a local clinic. It is a valuable asset in a high-demand sector.
Key Considerations
Beyond the market, the specific characteristics of your practice will determine its value to a buyer. Focusing on these areas before you go to market can significantly impact your final outcome.
Your Clinical Expertise
Your specialization in hand therapy is a powerful differentiator. Buyers pay a premium for niche expertise. The presence of Certified Hand Therapists (CHTs) on your staff is a major asset that signals a high level of care and a defensible market position. Be prepared to highlight this expertise.
Referral Network Strength
A diverse and stable base of referral sources is one of the most valuable intangible assets you own. Documenting your key referral relationships from orthopedists, primary care physicians, and other sources provides buyers with confidence in future revenue streams.
The Transition Plan
Buyers are not just acquiring your assets. They are acquiring an operational clinic. Having a clear and thoughtful plan for transitioning patient care, staff responsibilities, and key relationships is critical. It addresses a primary buyer concern and shows you are a serious, well-prepared seller.
Market Activity
The entire therapy sector is experiencing significant consolidation. Large strategic groups and private equity investors are actively seeking to acquire well-run practices like yours to build regional and national platforms. For an independent practice owner in Portland, this is great news. It means there are multiple, well-capitalized buyers competing for a limited number of quality practices. This competition is what drives premium valuations. Instead of fielding a single, unsolicited offer, a well-managed sale process can create an auction dynamic among several interested parties. An expert advisor does not just “list” your practice. They run a confidential process designed to bring the right buyers to the table and create this competitive tension on your behalf.
The Sale Process
Selling a practice is a structured project, not a single event. While every sale is unique, the process generally follows a clear path. Knowing these steps helps you prepare for what is ahead.
- Confidential Valuation and Preparation. This is where you work with an advisor to understand your practice’s true worth and organize your financial and operational documents.
- Strategic Marketing. Your advisor confidentially presents the opportunity to a curated list of qualified buyers who have been vetted for financial capability and strategic fit.
- Offer Negotiation. You will review and compare offers (Letters of Intent) to select the best partner, focusing on price, structure, and cultural fit.
- Due Diligence. The chosen buyer conducts a deep dive into your financials, operations, and legal compliance. This is where most deals fail without proper preparation.
- Closing and Transition. Final legal documents are signed, funds are transferred, and you begin the pre-planned transition process with the new owner.
Valuation
Many owners believe their practice is worth a simple multiple of its annual revenue. This is a common and costly mistake. Sophisticated buyers value your practice based on its profitability, not just its revenue. The key metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true cash flow. It is calculated by taking your net profit and adding back owner-specific or one-time expenses. For example, your personal salary above a market rate or a family member on payroll would be added back. A valuation multiple is then applied to this higher, adjusted profit number. Factors like having multiple therapists, strong referral patterns, and a specialized niche in hand therapy will increase the multiple a buyer is willing to pay. This is why a professional valuation is so important. It uncovers the true earning power of your business.
Post-Sale Considerations
The work is not over once you agree on a price. How the deal is structured has a massive impact on your financial future, your staff, and your legacy. Planning for these elements from the beginning is key to a successful transition.
| Consideration | Why It Matters |
|---|---|
| Your Future Role | Defining your commitment post-sale, whether for six months or two years, is a critical negotiation point that ensures a smooth handover. |
| Protecting Your Team | A buyer’s plan for your staff and culture is just as important as the price. We help you find partners who value what you have built. |
| The Financial Structure | The mix of cash at close, a potential earnout, or retained equity (a “rollover”) dramatically changes your risk and potential long-term upside. |
Thinking about these factors early in the process gives you more control over the final outcome. It ensures the deal aligns not just with your financial goals, but with your personal values as well.
Frequently Asked Questions
Is now a good time to sell an Occupational & Hand Therapy practice in Portland, OR?
Yes, currently the market conditions are strong for selling an Occupational & Hand Therapy practice in Portland. Demand for these therapy services is growing rapidly due to an aging population and increased focus on rehabilitative care. Portland’s strong healthcare ecosystem and favorable demographics create a robust buyer market, making it an excellent time to sell.
What factors affect the value of an Occupational & Hand Therapy practice?
Key factors affecting value include clinical expertise (especially specialization in hand therapy and presence of Certified Hand Therapists), the strength of your referral network, and having a clear transition plan for patient care, staff, and key relationships. These elements increase buyer confidence and can drive premium valuations.
How is the value of a therapy practice determined?
The value is based on profitability rather than just annual revenue. A key metric is Adjusted EBITDA, which adjusts net profit by adding back owner-specific or one-time expenses. Buyers apply a valuation multiple to this adjusted profit figure. Practices with multiple therapists, strong referral patterns, and niche specialties like hand therapy often command higher multiples.
What does the sale process of a therapy practice involve?
The process typically follows these steps: 1) Confidential valuation and preparation, 2) Strategic marketing to vetted buyers, 3) Offer negotiation focusing on price, structure, and cultural fit, 4) Due diligence by the buyer, and 5) Closing and transition to new ownership with planned patient care and staff handover.
What should I consider after selling my therapy practice?
Post-sale, consider your future role and commitment period to ensure a smooth transition, protect your staff and their working culture, and carefully structure the financial terms of the deal (cash, earnout, retained equity). Early planning of these factors helps ensure the deal aligns with your financial goals and personal values.