A look at the market, valuation, and key steps for a successful transition in New Mexico.
If you own an Occupational Therapy practice in Albuquerque, you have likely built something of significant value. Now you may be thinking about the future and considering a sale. This guide provides a clear look at the local market, the sale process, and how to prepare for a successful transition. We know specific information for your specialty and location can be hard to find.
Market Overview
Selling a healthcare practice in New Mexico has its own set of rules and opportunities. While specific public data on OT practice sales in Albuquerque is limited, we can look at broader trends to understand the climate.
The National Picture
The demand for occupational therapy services is strong nationwide. The industry is valued at nearly $30 billion. This sustained growth attracts interest from a variety of buyers, from other therapy groups to private investment firms looking for stable, essential businesses. This national demand creates a favorable environment for practice owners who are well-prepared to sell.
The Albuquerque Landscape
Locally, the market is more nuanced. Your practice’s value is tied to its specific reputation, patient base, and contracts within the Albuquerque metro area. Without a wealth of public sale comparables, the story of your practiceits operational efficiency, its role in the community, and its potential for growthbecomes much more important in conversations with potential buyers.
Four Things to Consider Before Selling Your OT Practice
When you decide to sell, you need a clear plan. Here are four areas that require your attention from the very beginning.
- Your True Value. How is an OT practice valued? It is more than just revenue. Buyers will look at your profitability, patient mix, equipment, and reputation in Albuquerque. Getting this number right is the foundation of your entire sale process.
- New Mexico Regulations. The transfer of a healthcare practice has specific rules. Buyers must be credentialed, and licenses must be handled correctly under the New Mexico Board of Occupational Therapy. A mistake here can delay or even derail a sale.
- Staff and Patient Transition. Your staff and patients are the lifeblood of your practice. A smooth transition plan is not just good for them. It is also a key point of value for a buyer who wants to see continuity.
- Maintaining Confidentiality. You need to explore a sale without disrupting your business. A breach of confidentiality can unsettle staff and patients. It can also weaken your negotiating position if the news gets out prematurely.
Market Activity and Potential Buyers
The market for healthcare practices is active, but who is actually buying? The buyer for your OT practice in Albuquerque will likely fall into one of a few categories. Each has different goals, which will influence the type of offer you receive and what life looks like after the sale. Understanding their motivations is key to finding the right fit for your personal and financial goals.
| Buyer Type | Primary Motivation | What This Means for You |
|---|---|---|
| Local/Regional Therapy Group | Geographic expansion and increasing market share. | They understand your business but may have a very specific price in mind. |
| Private Equity Firm | Building a larger platform of practices for future resale. | Often offer the highest valuations, but may want you to stay on for a period. |
| Local Hospital or Health System | Integrating therapy services into their patient care continuum. | Focus on strategic fit; the process can be more bureaucratic. |
| Individual Occupational Therapist | A chance to own their own practice and build on your legacy. | May be a great cultural fit, but financing can sometimes be a hurdle. |
The Typical Sale Process
Selling your practice is a structured process, not a single event. While every sale is unique, most follow a similar path. Preparing for each stage is the best way to ensure a smooth journey and a successful outcome.
- Preparation and Valuation. This is where the work begins, long before your practice is on the market. We help you organize your financials, understand your practices true worth, and prepare a confidential marketing package that tells your story.
- Confidential Marketing. We then identify and discreetly approach a curated list of qualified buyers, like those mentioned above. Your identity and the details of your practice are protected until a potential buyer is vetted and signs a confidentiality agreement.
- Negotiation and Offer. Multiple interested parties can lead to better terms. We manage the negotiations to get you the best possible offer, not just on price but also on terms that fit your post-sale goals.
- Due Diligence and Closing. This is where the buyer verifies all the information about your practice. Being thoroughly prepared for this stage is critical. It prevents surprises and keeps the deal on track toward a successful closing.
How Your Practice is Valued
A professional valuation is more than a formula. Sophisticated buyers today look past your reported net income to find the true cash flow of the business. They do this by calculating your Adjusted EBITDA. This figure takes your earnings and adds back personal expenses run through the business or a one-time cost that is not expected to recur. It shows the real earning power of your practice.
This Adjusted EBITDA figure is then multiplied by a number called a “multiple.” That multiple is not random. It is influenced by factors like your practice’s size, your reliance on a single therapist (or yourself), your reputation in Albuquerque, and your growth potential. A practice that is well-run and not dependent on its owner will command a higher multiple and, therefore, a higher final sale price.
Planning for Life After the Sale
The moment the deal closes is not the end of the story. A successful transition requires careful planning for what comes next, both for the practice and for you personally.
Protecting Your Legacy
You have spent years building your practice’s reputation and culture. The right buyer will want to preserve that. A key part of the sale process is creating a transition plan that supports your staff and ensures continuity of care for your patients. This protects your legacy and gives the new owner the best possible start. It is often a central point of our negotiations on your behalf.
Structuring Your Financial Future
How your sale is structured has major implications for your finances. The final deal can include things like an earnout, where you receive additional payments as the practice hits performance targets, or rollover equity, where you retain a stake in the new, larger company. More importantly, proper planning can significantly reduce your tax burden, ensuring you keep more of your hard-earned proceeds.
Frequently Asked Questions
What factors influence the value of an Occupational Therapy practice in Albuquerque?
The value of an OT practice is influenced by its profitability, patient mix, equipment, reputation in Albuquerque, operational efficiency, and growth potential. Buyers also consider the practice’s Adjusted EBITDA, which reflects true earning power after adjusting for personal or one-time expenses.
What regulatory considerations are there when selling an OT practice in New Mexico?
The transfer of a healthcare practice in New Mexico must comply with state regulations enforced by the New Mexico Board of Occupational Therapy. Buyers must be credentialed, and licenses must be properly transferred to avoid delays or issues in the sale process.
Who are the typical buyers for an Occupational Therapy practice in Albuquerque?
Typical buyers include local or regional therapy groups seeking expansion, private equity firms looking to build platforms of practices, local hospitals or health systems aiming to integrate therapy services, and individual occupational therapists wanting to own their own practice.
How does confidentiality play a role in selling an OT practice?
Maintaining confidentiality is crucial to prevent business disruption. Premature disclosure can unsettle staff and patients and weaken the owner’s negotiating position. Confidential marketing involves discreetly approaching vetted buyers under confidentiality agreements.
What should I consider for life after selling my Occupational Therapy practice?
Planning for post-sale life involves protecting your practice’s legacy, ensuring staff and patient continuity, and structuring your financial future. Sale terms might include earnouts or rollover equity, and tax planning is essential to maximize proceeds from the sale.
