Selling your pediatric physical therapy practice is one of the most significant financial and personal decisions you will make. In a dynamic market like San Antonio, understanding the current landscape is the first step toward a successful transition. This guide offers insights into the market, valuation, and key factors you should consider to protect your legacy and maximize your outcome.
Market Overview
The timing for selling a pediatric physical therapy practice in San Antonio appears strong. Several factors at the global, state, and local levels are creating a favorable environment for practice owners. This isn’t a coincidence; it’s a convergence of powerful trends that smart buyers are watching closely.
Rising Demand for Pediatric Therapy
The global market for pediatric physiotherapy is experiencing significant growth. It was valued at over $46 billion in 2023 and is projected to nearly double by 2031. This shows a fundamental, long-term need for the specialized services your practice provides.
High Demand for Therapists in Texas
Within Texas, the demand for physical therapists is set to outpace supply. Projections show a 28% growth in employment for physical therapists by 2030, which is double the national average. This shortage makes established practices with trained staff particularly attractive to buyers looking to enter or expand in the region.
San Antonio’s Expanding Patient Base
San Antonio isn’t just a big city; it’s one of the fastest-growing in the nation. For over a decade, its population has consistently expanded. This sustained growth translates directly into a growing base of potential pediatric patients, providing a built-in growth story for any potential acquirer.
Key Considerations
Beyond the broad market trends, a buyer will look closely at the specific assets that make your practice unique. The story you tell about your practice is just as important as the numbers on your profit and loss statement. Buyers are looking for a stable operation with a clear path for future success. This often comes down to your patient base, your team, and your facilities. An established practice with a long history in the community, a dedicated and experienced bilingual staff, and modern, well-equipped facilities is a premium asset. These are the elements that create a durable legacy and ensure a smooth transition for patients and new ownership.
Market Activity
The market for healthcare practices in San Antonio is not just theoretical; it’s active. We are seeing transactions happen, which signals healthy buyer interest in the area. For example, the recent acquisition of Cibolo Creek Physical Therapy by H2 Health shows that established national providers are actively expanding their footprint in San Antonio.
This activity is driven by several types of buyers, each with different goals:
- Strategic Acquirers: These are often larger regional or national therapy groups looking to grow by acquiring established local practices. They want your location, staff, and patient relationships.
- Private Equity-Backed Groups: These firms build larger platforms by acquiring multiple practices in a region. They look for well-run practices that can serve as a foundation for growth.
- Local Competitors: Sometimes a nearby practice or hospital system may be looking to expand its service area or add a pediatric specialty.
Understanding what each type of buyer is looking for is key to positioning your practice correctly and creating a competitive process that drives value.
The Sale Process
Many owners I speak with think the sale process begins when they list the practice. In reality, the most successful sales begin 12 to 24 months earlier with careful preparation. The journey from decision to closing involves several distinct phases. It starts with organizing your financials and operational documents. Then, a comprehensive valuation establishes a credible asking price. From there, we confidentially market the practice to a curated list of qualified buyers, manage negotiations, and enter the due diligence phase. This diligence step is critical. It is where buyers verify every aspect of the business, and it is where many deals encounter unexpected problems if the practice is not properly prepared. A guided process helps you anticipate buyer questions and present your practice professionally, ensuring a smoother path to a successful closing.
Valuation
“What is my practice worth?” is the most common question owners ask. The answer is more complex than a simple revenue multiple. Sophisticated buyers value your practice based on its Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization. This figure represents the true cash flow of the business, normalized for any owner-specific or one-time expenses. While multiples for smaller pediatric practices can range from 3x to 6x Adjusted EBITDA, the final number depends on several key factors.
| Factor | Lower Value Impact | Higher Value Impact |
|---|---|---|
| Provider Reliance | Dependent on a single owner/therapist | Driven by multiple associate therapists |
| Payer Mix | High concentration with one or two payers | Diverse mix of commercial and government payers |
| Growth Profile | Stable but flat revenue history | Demonstrable year-over-year patient growth |
| Staff & Operations | High turnover, inefficient scheduling | Experienced, bilingual staff; modern EMR |
An expert valuation doesn’t just apply a formula. It tells the story behind the numbers to justify the highest possible multiple.
Post-Sale Considerations
Finalizing the sale agreement is a major milestone, but it’s not the end of the journey. The structure of your deal has long-term implications for your finances, your staff, and your personal legacy. You need to consider what your role, if any, will be after the sale. Will you stay on for a transition period? Many deals include an earnout, where a portion of the sale price is tied to the practice’s future performance, or an equity rollover, where you retain a stake in the new, larger company. These structures can create upside, but they require careful negotiation. Planning for the transition of your team is also critical to protect the culture you built and ensure continuity of care for your patients. Thinking about these elements early in the process ensures your goals are met long after the closing documents are signed.
Frequently Asked Questions
What is the current market outlook for selling a pediatric physical therapy practice in San Antonio, TX?
The market for selling pediatric physical therapy practices in San Antonio is currently strong. Factors such as rising global demand for pediatric therapy, high demand for therapists in Texas with projected employment growth of 28% by 2030, and San Antonio’s rapidly expanding patient base make it a favorable environment for sellers.
What key factors do buyers consider when purchasing a pediatric physical therapy practice in San Antonio?
Buyers look closely at the practice’s patient base, the quality and experience of the team (especially bilingual staff), the facilities, and the overall stability and growth potential. An established practice with a strong community presence, dedicated staff, and modern facilities is seen as a premium asset that ensures smooth ownership transition.
Who are the typical buyers interested in acquiring pediatric physical therapy practices in San Antonio?
There are three main types of buyers: 1) Strategic Acquirers such as large regional or national therapy groups, 2) Private Equity-Backed Groups that acquire multiple practices for platform growth, and 3) Local Competitors including nearby practices or hospital systems seeking to expand their pediatric therapy services.
How should I prepare my pediatric physical therapy practice for sale to maximize its valuation?
Preparation should begin 12 to 24 months before listing. Steps include organizing financial and operational documents, obtaining a comprehensive valuation based on Adjusted EBITDA, and ensuring the practice has a stable operation with experienced staff, diverse payer mix, and demonstrable revenue growth. Proper preparation helps anticipate buyer questions and leads to a smoother sale process.
What are important post-sale considerations after selling a pediatric physical therapy practice?
Post-sale considerations include negotiating your ongoing role (such as staying on during a transition period), possible earnouts tied to future performance, and equity rollovers where you retain a stake in the enlarged company. Also important is planning for the transition of your staff and maintaining continuity of care to protect your practice’s culture and legacy.