Guide to Selling a Occupational & Hand Therapy Practice in Albuquerque, NM

Selling your Occupational & Hand Therapy practice is one of the most significant financial decisions you will make. For owners in Albuquerque, the current market presents a strong opportunity, but realizing your practice’s full value requires more than just good timing. It demands a clear understanding of market dynamics, a strategic approach to valuation, and careful preparation. This guide provides insight into how you can navigate the process to achieve your personal and financial goals.

Market Overview

The decision to sell your practice doesn’t happen in a vacuum. It is heavily influenced by market conditions. Currently, those conditions are favorable for occupational and hand therapy practice owners.

National Tailwinds

On a national level, the market for therapy services is experiencing robust growth. Projections show the U.S. occupational and physical therapy sector expanding at a compound annual growth rate of 10.1% through 2032. This trend is fueled by an aging population and a greater focus on rehabilitative care. This growth attracts significant interest from a wide range of buyers, from other private practices to healthcare investors looking for stable, profitable platforms.

The Albuquerque Opportunity

Here in Albuquerque, your practice is part of an established healthcare community. Sophisticated buyers recognize the value of a practice with deep local roots, established referral patterns, and a solid reputation. The key is to translate that local strength into a compelling narrative that aligns with the broader national investment trends.

Key Considerations for Sellers

A strong market creates opportunity, but a successful sale is built on preparation. Buyers look past the surface and evaluate the fundamental strengths of your practice. Here is what they focus on, and what you should, too.

1. Your Financial Story. Buyers are primarily interested in one thing: cash flow. This is not the same as the net income on your tax return. They will look at your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which normalizes for owner-specific expenses. Having clean, clear financials that tell a story of consistent profitability and growth is critical.

2. Your Team’s Expertise. In a hands-on field like therapy, your staff is a major asset. A practice with experienced, Certified Hand Therapists and a stable team is far more valuable than one entirely dependent on the owner. This expertise ensures continuity of care and de-risks the transition for a new owner.

3. Your Growth Potential. Buyers pay for the future, not just the past. You must be able to articulate clear pathways for growth. This could involve expanding services, opening a satellite location, or optimizing your current referral network. We help owners build this narrative before ever going to market.

4. Your Personal Readiness. Are your personal and financial goals aligned? The right time to sell is a personal decision. It involves being ready for your next chapter, whether that is retirement, a new venture, or a continued role in the practice under new ownership.

Planning for these factors well in advance is the best way to control your own destiny.

Uncovering Market Activity

You have probably looked for information on what other Occupational & Hand Therapy practices in Albuquerque have sold for. It is likely you did not find much. This is not because practices are not selling. It is because nearly all successful transactions in the private healthcare market are confidential.

Relying on public information or generic industry rules of thumb can lead you to drastically misjudge your practice’s value and the level of buyer interest. The real market activity is uncovered through a structured, confidential process.

The key takeaway is that we do not just find the market price. We create it by generating competitive tension among the right buyers.

The Path to a Successful Sale

A practice sale is not a single event. It is a carefully orchestrated process with distinct phases, each requiring a different focus. While the details vary, the journey typically follows a clear path.

1. Phase 1: Strategy and Preparation. This is where the foundation for a premium valuation is laid. We work with you to understand your goals, clean up your financials to calculate a defensible Adjusted EBITDA, and prepare a compelling narrative about your practice
   9s future.

2. Phase 2: Confidential Marketing. Your practice
   9s identity is kept confidential while we present the opportunity to a targeted list of qualified buyers from our private database. We manage all communications and screen potential partners to ensure they are a good fit both financially and culturally.

3. Phase 3: Negotiation and Due Diligence. After generating interest and receiving initial offers, we help you negotiate the best terms. Once an offer is accepted, the buyer conducts due diligence. This is a thorough review of your financials, operations, and legal standing. It is the phase where many deals encounter unexpected problems if not managed correctly.

4. Phase 4: Closing. We work alongside your legal counsel to finalize the purchase agreements and manage the final steps to a successful closing, ensuring a smooth transition for you, your staff, and your patients.

Properly preparing for each stage, especially due diligence, is the difference between a smooth transition and a frustrating one.

Determining Your Practice
9s True Value

The most common question we hear is, “What is my practice worth?” The answer is more complex than a simple rule of thumb, but it is not a mystery. Sophisticated buyers use a consistent methodology to determine value.

It Starts with Adjusted EBITDA

Your practice’s value is based on its true earning power. We determine this by calculating your Adjusted EBITDA. We start with your net income and add back interest, taxes, depreciation, amortization, and any non-recurring or owner-specific costs. This might include a portion of your own salary if it is above market rate, or other personal expenses run through the business. The result is a clear picture of the cash flow a new owner could expect.

Applying the Right Multiple

Next, we apply a valuation multiple to your Adjusted EBITDA. This multiple is not a fixed number. It is a range that reflects your practice’s specific risk and growth profile. Factors that lead to a higher multiple include:
* A strong, non-owner clinical team
* Diversified referral sources
* A history of consistent growth
* Clear opportunities for future expansion

For example, a smaller practice might receive a 3x-5x multiple, while a larger, associate-driven practice could command 5.5x-7.5x or more in today’s market.

Putting It Together

A practice with $300,000 in Adjusted EBITDA might be valued at $1.2 million (a 4x multiple), while another practice with the same earnings but a stronger growth profile and less owner-dependency might be valued at $1.8 million (a 6x multiple). Our job is to build the case for that higher multiple.

Planning for Life After the Sale

A successful exit is defined by what happens after the closing table just as much as what happens before. The total sale price is important, but how the deal is structured determines your final take-home proceeds, your legacy, and the future for your team. Thinking about these elements from the start is key.

1. Optimizing Your After-Tax Proceeds. The structure of the sale has major implications for your tax liability. An asset sale versus an entity sale, for example, can result in vastly different outcomes. Planning for tax efficiency from day one can significantly increase the cash that ends up in your pocket.

2. Protecting Your Team and Legacy. You have spent years building a team and a reputation in the Albuquerque community. Finding a buyer who respects that culture and intends to retain your staff is a critical, non-financial goal for most owners. This is a major focus when we help you evaluate potential partners.

3. Defining Your Future Role. Selling does not always mean walking away. Many owners choose to stay on for a transition period, while others roll a portion of their equity into the new company. This “second bite at the apple” can provide significant future upside. Defining your desired role early on helps us find the right type of buyer for you.

Properly structuring the transition ensures that the practice you built continues to thrive.