Selling your integrated Speech and Occupational Therapy practice is a major life decision. For owners in San Antonio, the current market presents unique opportunities but also requires careful navigation. This guide provides key insights into the local market, valuation principles, and the sale process, helping you understand how to prepare for a successful transition and realize the full value of the practice you have built.
San Antonio Market Overview
The San Antonio market for integrated therapy practices is strong. It’s an environment defined by high demand for services and a growing population. Sophisticated buyers, from private equity groups to expanding regional players, are actively looking for well-run practices in this area.
This demand is fueled by powerful national and local trends.
1. Exceptional Growth Projections. Nationally, the demand for Speech-Language Pathologists is projected to grow 27% and Occupational Therapists by 18%. This national wave directly benefits local San Antonio practices.
2. Strong Local Employment. The San Antonio-New Braunfels area has a solid base of talent, with over 430 OT assistants employed locally as of 2023. This indicates a healthy ecosystem for staffing and expansion.
3. Attractive Service Costs. With pediatric OT sessions averaging around $120, the local economics support a profitable business model that is attractive to acquirers.
Key Considerations for San Antonio Owners
A strong market is a great starting point. Realizing your practices top value requires strategic preparation. The most successful sales we see are from owners who begin the planning process two to three years before their target exit date. This gives you time to get your practice in order. Buyers pay for proven performance, not just potential. Key areas to focus on include organizing financial records, documenting operational procedures, and ensuring all compliance and patient records are pristine. This preparation is not just about a clean-up. It is about framing a compelling story of your practice’s stability and growth potential for a potential buyer.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Market Activity and Buyer Appetite
While specific sale details of San Antonio therapy practices are confidential, the activity is robust. We see a clear trend of sophisticated buyers looking for well-managed, integrated practices. Here is what is driving the market.
The Rise of Strategic Buyers
Acquirers are not just local competitors. They are often private equity-backed groups and large regional platforms looking to establish or expand their footprint in a desirable market like San Antonio. These buyers look for practices with strong operational systems and a clear path to growth.
The Importance of Confidentiality
Because transaction data isn’t public, you can’t rely on Zillow-like comparisons to value your practice. Understanding the market requires access to information on private deals. This is where a competitive process becomes critical. You need to create tension among multiple qualified buyers to truly discover your practices highest value.
Finding the right type of buyer for your practice depends on your specific goals.
Navigating the Sale Process
Selling your practice follows a structured path, and understanding it can remove much of the uncertainty. The process generally begins with a professional valuation to establish a credible asking price. From there, your practice is confidentially marketed to a curated list of qualified buyers. Once interest is confirmed, the due diligence phase begins. This is where the buyer examines your financial and operational records in detail. It is also where many sales encounter unexpected challenges if the practice is not well-prepared. The final stage involves negotiating the definitive agreements and planning for a smooth transition of ownership, staff, and patient care.
The due diligence process is where many practice sales encounter unexpected challenges.
How Your Practice is Valued
Your practice is worth more than its equipment and furniture. Sophisticated buyers value it based on its profitability and future cash flow, a metric known as Adjusted EBITDA. This is not the same as the net income on your tax return. We calculate Adjusted EBITDA by taking your reported profit and adding back owner-specific expenses and one-time costs to reveal the true underlying profitability of the business. This adjusted number is then multiplied by a market-based “multiple” to determine the practice’s enterprise value.
Here is a simplified example of how we uncover hidden value.
| Financial Item | Amount | Explanation |
|---|---|---|
| Reported Net Income | $200,000 | The profit shown on your financial statement. |
| Add back: Excess Owner Salary | +$75,000 | The portion of your salary above the market rate. |
| Add back: Personal Expenses | +$15,000 | Personal car or travel run through the business. |
| Adjusted EBITDA | $290,000 | The true profitability that a buyer will value. |
This adjusted figure is what a buyer uses. A higher Adjusted EBITDA leads directly to a higher valuation for your practice.
Curious about what your practice might be worth in today’s market?
Life After the Sale: Structuring Your Transition
The final sale price is only part of the story. The structure of the deal has major implications for your future, your staff, and your legacy. A successful transition plan involves more than just a handshake. It includes clear agreements on staff retention, patient handovers, and your own potential ongoing role. For many owners, a 100% cash sale is not the only option. Structures like an equity rollover, where you retain a minority stake in the new, larger entity, allow you to benefit from future growth. This can provide a “second bite of the apple” and align your interests with the new owner, often while preserving your clinical role. Planning for these post-sale realities is critical to ensuring the transition meets your personal and financial goals.
Your specific goals and timeline should drive your practice transition strategy.
Frequently Asked Questions
What is the current market outlook for selling an integrated Speech and Occupational Therapy practice in San Antonio, TX?
The San Antonio market is very strong for integrated therapy practices, with high demand driven by population growth and employment opportunities. Sophisticated buyers, including private equity groups and regional players, are actively seeking well-managed practices. The local market benefits from national growth projections of 27% for Speech-Language Pathologists and 18% for Occupational Therapists, along with a strong local workforce and attractive service pricing.
How should I prepare my Speech and Occupational Therapy practice for sale in San Antonio?
Preparation should start two to three years before your target exit date to maximize value. Focus on organizing financial records, documenting operational procedures, and ensuring compliance and patient records are meticulous. This preparation helps you present a compelling story of stability and growth potential, which is critical for attracting serious buyers.
Who are the typical buyers for these practices in the San Antonio area?
Buyers tend to be strategic and sophisticated, including local competitors, private equity-backed groups, and large regional platforms aiming to expand their footprint. They look for practices with strong operational systems and clear growth potential. Confidentiality is important in these sales, and creating competition among multiple qualified buyers is essential for achieving the highest value.
How is the value of a Speech and Occupational Therapy practice determined?
Valuation is typically based on Adjusted EBITDA rather than just net income. This involves adjusting reported profits by adding back owner-specific expenses and one-time costs to show true profitability. This adjusted EBITDA is then multiplied by a market-based multiple to determine enterprise value. For example, adding back excess owner salary and personal expenses can reveal hidden value that increases your practice’s worth.
What should I consider about the transition and deal structure after selling my practice?
The deal structure affects your future, staff, and legacy. Options include a 100% cash sale or structures like an equity rollover, allowing you to retain a minority stake and benefit from future growth. Planning the transition involves clear agreements on staff retention, patient handovers, and potential ongoing roles. Tailoring the transition to your goals and timeline is crucial to a successful sale and post-sale experience.