Selling your Sports Medicine & Performance Therapy practice in Charlotte is a significant decision. The market is active right now, fueled by major local investments and growing demand. This guide gives you a clear overview of the current landscape, from market trends to the sale process. Being properly informed is the first step toward a successful transition and securing your legacy.
A Market Poised for Growth
If you are considering a sale, the timing is favorable. The market for physical therapy and sports medicine is not just stable. It is expanding rapidly. This growth creates significant opportunities for practice owners like you.
National Tailwinds
The U.S. physical therapy market is valued at nearly $50 billion and continues to grow. A key driver of this is private equity investment. These firms are actively seeking to acquire and partner with established practices because the market is fragmented. This high demand often leads to more attractive valuations for sellers who are well prepared.
The Charlotte Advantage
Charlotte is a focal point for this a ctivity. The city is experiencing a surge in sports medicine infrastructure, including a new $45 million sports medicine facility and the Hornets’ $150 million performance center. This investment signals a growing local demand for your services. It also puts your practice on the radar of buyers looking to enter or expand in a high-growth area.
Thinking Beyond the Numbers
A successful sale is about more than just the final price. It’s about your legacy and the future of the practice you built. Many owners I talk to worry that a new owner, especially a private equity group, might prioritize profits over patient care. This is a valid concern. The key is to find a buyer whose vision aligns with yours. The selling process is not a short sprint. The best outcomes we see are for owners who begin planning two to three years in advance. This gives you time to prepare your practice and find a partner who will protect your team and your reputation.
What’s Happening on the Ground in Charlotte
The market isn’t just theory. We are seeing major moves right here in Charlotte. For example, OrthoCarolina recently decided to sell its physical therapy business to PT Solutions, a large, private-equity-backed company. Here is what this tells us:
- Buyers are Serious: Large, well-funded groups are spending money to acquire practices in Charlotte. They see the same growth and opportunity that the local investment numbers suggest.
- Opportunities Abound: This move shows that even large orthopedic groups are choosing to focus on their core services. This creates space in the market for specialized practices like yours to attract interest from a wide range of buyers, from other PE-backed firms to smaller regional players looking to grow.
- Preparation is Key: A deal of this size sends ripples through the market. It raises the bar and shows that buyers are sophisticated. Having your financials in order and a clear story is crucial to stand out.
The Path to a Successful Sale
Selling your practice follows a clear path, but it requires careful navigation. It starts long before you ever list it. The first step is developing your personal exit strategy. What do you want to achieve financially and for your legacy? From there, we find it is best to conduct a thorough review of your operations and financials to understand your practice’s true strengths. This preparation makes the next phases, such as confidential marketing and buyer negotiations, run much more smoothly. The final, and arguably most critical, stage is the due diligence process, where the buyer verifies everything. Proper readiness here can prevent last-minute problems.
Understanding What Your Practice is Worth
Determining the value of your practice is more than a simple calculation. While you may hear about practices selling for a multiple of revenue, sophisticated buyers look deeper. They focus on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true cash flow, adding back owner-specific expenses. That number is then multiplied by a figure that reflects your practice’s quality and risk. Your multiple is not fixed. It is influenced by several factors that we can help you improve.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Solo owner-dependent | Multi-provider team |
| Growth | Flat or declining revenue | Consistent year-over-year growth |
| Systems | Manual, owner-run | Documented, efficient processes |
| Location | Average demographics | High-growth Charlotte area |
A proper valuation tells a story about your future potential, which is why a professional assessment is so important.
Planning for Life After the Sale
The day the deal closes is not the end of the story. It is the beginning of a new chapter for you and your practice. A well-structured sale includes a clear plan for the transition. This often involves you staying on for a period to ensure a smooth handover, which protects your staff and the patients you have served. The structure of your deal is also a major consideration. Will you take all cash at closing, or will part of your payment come from an earnout or rollover equity? These structures can offer significant upside but require careful negotiation. Thinking about these elements early ensures your financial future and legacy are secure.
Frequently Asked Questions
What is the current market outlook for selling a Sports Medicine & Performance Therapy practice in Charlotte, NC?
The market is actively growing, driven by significant local investments such as a $45 million sports medicine facility and the Hornets’ $150 million performance center. This creates a favorable environment for sellers with strong demand and increasing valuations.
Who are the typical buyers interested in acquiring sports medicine practices in Charlotte?
Buyers range from private equity-backed firms to regional players and large orthopedic groups. These buyers are attracted by Charlotte’s growth and investment in sports medicine infrastructure, seeking to expand or enter this high-growth market.
How should I prepare my practice for sale to get the best valuation?
Preparation involves developing a clear exit strategy, organizing your financials, and optimizing your practice’s operational strengths such as having documented efficient processes, multi-provider teams, and consistent growth. Proper readiness for buyer due diligence is crucial to avoid last-minute issues.
How is the value of my Sports Medicine & Performance Therapy practice determined?
Value is calculated based on Adjusted EBITDA (true cash flow) multiplied by a multiple reflecting your practice’s quality and risk factors. Factors influencing higher multiples include multi-provider models, consistent growth, efficient systems, and prime locations like high-growth Charlotte areas.
What should I consider for the transition after selling my practice?
Plan for a structured transition that may involve remaining with the practice temporarily to ensure smooth handover. Consider deal structures such as cash, earnouts, or rollover equity to protect your financial future and legacy, while ensuring continuity for your staff and patients.