As the owner of a successful Speech and Occupational Therapy practice in Salt Lake City, the thought of selling is a major decision. You have built more than a business. You have built a community resource and a dedicated team. This guide provides a clear overview of the market, the process, and the key factors you should consider to ensure a successful transition that honors your legacy and achieves your financial goals.
Curious about what your practice might be worth in today’s market?
Salt Lake City’s Thriving Therapy Market
The market for therapy services is strong. Nationally, the speech therapy sector alone is projected to grow from $4.91 billion in 2024 to over $8.3 billion by 2032. Your integrated practice sits within an even larger $53 billion outpatient therapy industry, giving you access to a wide pool of potential buyers.
Here in Salt Lake City, the healthcare market is active and growing. We see strong demand for therapy services, driven by a growing population and a greater awareness of developmental and neurological needs. Your integrated model, which combines Speech and Occupational therapy, is a powerful differentiator. It offers a comprehensive care approach that is highly attractive to buyers looking for established, holistic practices with a competitive edge in the local market. This creates a favorable environment for practice owners considering a sale.
Key Considerations for Salt Lake City Owners
When a buyer looks at your practice, they see more than just numbers. They see a story and an opportunity. In Salt Lake City’s specific market, buyers will focus on a few key areas that demonstrate the health and potential of your practice.
Your Integrated Model is a Strength
Your practice’s ability to offer both Speech and Occupational therapy is its greatest asset. It signals operational maturity and provides a sticky, comprehensive service for patients. Be prepared to show how this synergy benefits patients and creates efficient referral patterns within the practice.
Your Team and Reputation Matter
A stable, experienced team of licensed therapists is a major value driver. Buyers look for low staff turnover and a strong, positive reputation in the Salt Lake City community. Patient testimonials and solid referral relationships from local pediatricians and schools are evidence of a business built to last.
Navigating Local Regulations
Prospective buyers will perform due diligence to ensure you are fully compliant. This includes everything from HIPAA to Utah’s Occupational Therapy Practice Act (R156-42a). Having your documentation and processes in order shows professionalism and removes potential roadblocks during the sale.
Understanding Current Market Activity
One of the first questions owners ask is, “What did the practice down the street sell for?” It’s a natural question, but the answer is rarely available. The sale of private medical practices is almost always confidential. There is no public database of transaction prices for integrated therapy practices in Salt Lake City.
Because of this, buyers rely heavily on two things: market comparables, which an experienced advisor can provide, and a deep dive into your practices unique financial and operational story. This market opacity means that owners who “go it alone” are often at a disadvantage. A professionally prepared practice with a clear growth narrative and clean financials can command a premium valuation because it removes uncertainty for the buyer. The story you tell, backed by solid data, is what defines your practice’s value.
The Path to a Successful Sale: A Simplified Process
Selling your practice is a structured journey, not a single event. While every sale is unique, the process generally follows a clear path. Understanding these stages can make the experience feel much more manageable. We help owners navigate each step of the way.
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Preparation and Valuation
This is the foundation. It involves getting your financial records in order, identifying and addressing any operational weaknesses, and, most importantly, obtaining a comprehensive, third-party valuation. This step ensures you are not guessing about your practice’s worth. -
Confidential Marketing
Your practice is marketed confidentially to a vetted pool of qualified buyers. This protects your relationships with staff, clients, and referral sources. It is not about “listing” your practice, but about running a discreet and competitive process. -
Negotiation and Offers
As offers come in, we help you compare them not just on price, but also on structure and fit. The right partner is often more important than the highest initial offer. -
Due Diligence and Closing
This is where the buyer verifies all the information about your practice. Being well prepared for this stage is critical, as this is where many deals encounter unexpected delays. A smooth due diligence process leads to a successful closing.
How Your Practice is Valued
A practice’s valuation is not based on revenue alone. The most common method is based on a multiple of your Adjusted EBITDA. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. “Adjusted” means we add back personal or one-time expenses to find the true cash flow of the business. For therapy practices, this multiple typically ranges from 3x to 6x.
What determines if your practice gets a 3x or a 6x multiple? It comes down to quality and risk. Buyers pay more for practices that are stable, efficient, and have clear growth potential.
| Factor | Lower Valuation | Higher Valuation |
|---|---|---|
| Financials | Unorganized records | Clean, normalized EBITDA |
| Staffing | High turnover, owner-dependent | Stable, experienced team |
| Revenue Streams | Concentrated payer mix | Diversified (insurance, private pay) |
| Operations | Inefficient manual processes | Mature EMR & billing systems |
A comprehensive valuation is the only way to understand what your practice is truly worth in today’s market.
Planning for Life After the Sale
The moment the deal closes is not the end of the story. It is the beginning of your next chapter. Planning for your transition is just as important as negotiating the price. A well-structured deal protects your legacy and sets you up for the future.
Your Role in the Transition
Most buyers will want you to stay on for a period of time to ensure a smooth handover. The length and nature of this transition period are key points of negotiation. It can range from a few months to a few years, depending on your goals and the buyer’s needs.
Understanding Your Payout Structure
The “price” is often more complex than a single cash payment. Your deal might include an earnout, where you receive additional payments for hitting performance targets, or rollover equity, where you retain a stake in the new, larger company. These structures can create significant a upside but require careful planning.
Protecting Your Team and Legacy
You have spent years building a dedicated team and a trusted reputation in Salt Lake City. The right buyer will recognize this value and want to preserve it. We focus on finding partners who align with your culture and are committed to taking care of your people.
Selling your practice is a significant personal and financial milestone. With the right preparation and guidance, you can navigate the process confidently.
Not sure if selling is right for you?
Frequently Asked Questions
What makes an integrated Speech & Occupational Therapy practice in Salt Lake City attractive to buyers?
An integrated practice offers both Speech and Occupational Therapy services, which demonstrates operational maturity and provides comprehensive care for patients. This synergy creates efficient referral patterns within the practice and appeals to buyers looking for holistic and established practices with a competitive edge locally.
How is the value of my Speech & Occupational Therapy practice determined?
The value is typically based on a multiple of your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This multiple ranges from 3x to 6x, depending on factors like financial cleanliness, staffing stability, revenue diversification, and operational efficiency. A professional valuation gives an accurate market worth.
What should I expect during the sale process of my therapy practice in Salt Lake City?
The sales process generally involves four stages: Preparation and Valuation (organizing records and getting a valuation), Confidential Marketing (marketing to vetted buyers discreetly), Negotiation and Offers (comparing offers on price and fit), and Due Diligence and Closing (buyer verifies information and completes the sale). Understanding this can make the process smoother.
How important is my team and reputation when selling my practice?
Very important. Buyers look for a stable, experienced team with low turnover and a strong positive reputation in the Salt Lake City community. Patient testimonials and solid referral relationships from local pediatricians and schools can significantly increase your practice’s perceived value and attractiveness.
What kind of transition can I expect after selling my Speech & Occupational Therapy practice?
Most buyers will want you to stay on for a transition period ranging from a few months to a few years to ensure a smooth handover. Deal structures might include earnouts or rollover equity. The right buyer will also prioritize protecting your team and legacy by aligning with your culture and commitment to your staff.