If you own a clinic-based ABA therapy practice in Georgia, the market is sending strong signals. Buyer interest is high, and demand for quality ABA services continues to grow. Making the most of this opportunity requires careful preparation and a clear understanding of the landscape. In this guide, we break down the key factors for a successful sale, from market conditions to valuation.
The Market for ABA Practices in Georgia
The environment for selling an ABA therapy practice in Georgia is exceptionally strong right now. This is not a coincidence. It is driven by a few powerful, intersecting forces that have created a true seller’s market.
A Seller’s Market
The M&A market for all pediatric practices is very active, and ABA therapy is a particularly sought-after specialty. Strategic buyers and private equity groups are looking for well-run clinics to enter or expand within the Georgia market. They see the long-term value and are willing to pay for it.
Surging Local Demand
Across Georgia, and especially in fast-growing communities around metro Atlanta, the demand for ABA services consistently outpaces the available supply. Many successful practices have long client waitlists. For a potential buyer, an existing waitlist is not a problem. It is a clear, built-in opportunity for immediate growth.
The Demographic Drivers
The need for ABA services is backed by hard data. In 2018, the estimated prevalence of ASD in Georgia was 1 in 44 children, a rate that has been rising and surpasses the national average. This fundamental demographic reality provides a stable, long-term foundation for the value of your practice.
Key Considerations for a Seller
A strong market provides the opportunity, but the final value of your practice is determined by its specific operational strengths. Buyers look past the general trends and focus on the quality of the business itself. They want to see a practice that is not just profitable, but stable and scalable. This means having a fully-staffed team of qualified BCBAs and RBTs, strong relationships with insurance payers, and a solid reputation with referral sources like pediatricians and schools. The most attractive practices are those that can run without the owner’s constant day-to-day involvement. Proving you have a turnkey operation with a clear path for future growth is how you move from a good valuation to a great one.
Current Market Activity & Valuations
Theories about the market are one thing. Actual transactions are another. We are seeing consistent M&A activity in the Georgia ABA space, from local firms like Regency ABA making strategic acquisitions to smaller, independent practices changing hands.
Buyers typically value a practice based on a multiple of its Seller’s Discretionary Earnings (SDE) or Adjusted EBITDA. While multiples can range widely based on size and profitability, a recent public listing for a center-based ABA clinic in Suwanee, GA, provides a helpful snapshot of the market.
| Financial Metric | Example Practice Value |
|---|---|
| Asking Price | $1,450,000 |
| Gross Revenue | $1,300,000 |
| Cash Flow (SDE) | $341,000 |
| Implied Multiple (of SDE) | ~4.25x |
This example shows how a practice established just a few years ago can create significant enterprise value. Understanding where your practice fits within this landscape is the first step in positioning it for a premium outcome.
The Practice Sale Process
Selling your practice is a structured process, not a single event. It begins long before the “For Sale” sign goes up. The first phase is preparation. This involves gathering your financial, operational, and legal documents and getting a professional business valuation. This sets a realistic price range and forms the foundation of your entire strategy. Next, we confidentially market the practice to a curated pool of qualified buyers. After negotiating a Letter of Intent (LOI), the most intensive phase begins: due diligence. This is a 4-6 week period where the buyer verifies every aspect of your business. Many deals encounter unexpected challenges here. Proper preparation with an experienced advisor is the best way to ensure a smooth journey from LOI to closing.
How Your Practice is Valued
Understanding your practice’s valuation is the most important part of a successful sale. It is not just a math problem. It is about telling the right financial story. Sophisticated buyers look at your Adjusted EBITDA, which is your profit after adding back owner-specific expenses and one-time costs to show the practice’s true cash flow. At SovDoc, we find that a practice’s final value is a combination of this number and the story behind it.
Buyers will pay a premium for practices that demonstrate strength in four key areas:
- Profitability. A history of strong, consistent profit margins is the bedrock of any valuation.
- Scale and Staff. Practices that are not dependent on a single owner and have a strong clinical team are seen as less risky and more valuable.
- Systems and Operations. Efficient billing, scheduling, and clinical information systems show that the practice is well-managed and ready to scale.
- Growth Potential. A clear and believable plan for future growth, such as opening a new location or expanding services, is a powerful value driver.
Planning for Life After the Sale
The transaction is not the end of the story. Your role after the sale is a key point of negotiation. Most buyers will want you to stay on for a transition period to ensure a smooth handover of clinical and business relationships. This, along with the scope of the non-compete agreement you will be asked to sign, requires careful planning to align with your personal and professional goals. Just as important is protecting your legacy. The right deal structure and the right buyer can ensure your staff are taken care of and that the quality of care you established continues. Finally, working with a tax advisor from the beginning is critical. The structure of your sale has major implications for your after-tax proceeds, and proper planning can make a significant difference in your final financial outcome.
Frequently Asked Questions
What is the current market environment for selling a clinic-based ABA therapy practice in Georgia?
The market for selling ABA therapy practices in Georgia is exceptionally strong right now, characterized by high buyer interest and demand for quality ABA services. It is considered a seller’s market driven by strategic buyers and private equity groups looking to enter or expand in Georgia.
What factors determine the valuation of an ABA therapy practice in Georgia?
Valuation is primarily based on a multiple of the practice’s Seller’s Discretionary Earnings (SDE) or Adjusted EBITDA. Key factors that drive a premium valuation include profitability, having a fully-staffed and qualified clinical team, strong payer relationships, operational systems, scalability, and a clear plan for future growth.
What does the sale process of a clinic-based ABA therapy practice typically involve?
The sale process is structured and starts with preparation by gathering financial, operational, and legal documents, followed by obtaining a professional valuation. The practice is then marketed confidentially to qualified buyers, culminating in negotiation of a Letter of Intent (LOI) and a due diligence phase (4-6 weeks) where the buyer verifies all aspects of the business.
How important is the clinical team and operations in attracting buyers for an ABA practice sale?
Buyers highly value practices that have a strong, fully-staffed team of qualified BCBAs and RBTs and that can operate without the owner’s constant involvement. Efficient systems for billing, scheduling, and clinical data management also demonstrate that the practice is well run and ready to scale, increasing its attractiveness and value.
What should sellers consider regarding their role after selling their ABA therapy practice?
Sellers usually need to stay on for a transition period to help with clinical and business relationship handover. They must also negotiate the non-compete agreement carefully to align with their goals. Planning for tax implications with an advisor and ensuring the staff and quality of care are protected post-sale are also critical considerations.
