The market for Applied Behavior Analysis (ABA) services is expanding, driven by rising demand and awareness. For owners of School and Community-Based ABA practices in New Hampshire, this presents a significant opportunity. This guide provides a clear overview of the current market, key steps in the sale process, and how your practice’s value is determined. Navigating a sale requires careful planning to achieve your personal and financial goals.
Market Overview
The timing for considering a sale of your ABA practice is strong. The market is supported by powerful tailwinds at both the national and local levels.
National Market Growth
The U.S. market for ABA services is robust, valued at $4 billion in 2023 and projected to grow steadily. This growth is fueled by an increasing awareness of Autism Spectrum Disorder (ASD) and a clear demand for effective therapy. For practice owners, this translates into a larger pool of potential buyers and investors who are eager to enter or expand within the behavioral health space.
New Hampshire’s Supportive Environment
In New Hampshire, the demand is just as apparent. The state has an active and collaborative ABA community and, importantly, laws that generally mandate insurance coverage for ABA therapy. This regulatory support provides a stable foundation for revenue and reduces risk for potential acquirers, making New Hampshire a particularly attractive location for ABA practices.
Key Considerations
Selling a School and Community-Based ABA practice in New Hampshire involves more than just market dynamics. It requires a focused look at your unique operational and regulatory footprint. Buyers will scrutinize your compliance with the New Hampshire Board of Mental Health Practice licensing requirements for your BCBAs. They will also assess your adherence to state laws governing school and community-based services.
Beyond compliance, the heart of your practice is your team and the trust you have built with families and schools. A successful transition depends on a plan that ensures continuity of care for your clients and provides a stable, supportive future for your staff. These are not just details. They are core components of your practice’s value and legacy.
Market Activity
The behavioral health sector is currently seeing significant interest from buyers, including private equity firms and larger strategic providers. We have seen this locally, with acquisitions like New England ABA joining The Stepping Stones Group, signaling a healthy M&A climate.
This activity means that well-run practices are in demand. Sophisticated buyers are actively searching for practices with specific qualities.
Four things buyers look for in a New Hampshire ABA practice:
1. Clean Financials: A history of consistent revenue and profitability, measured by Adjusted EBITDA.
2. Strong Team: A stable, qualified team of licensed BCBAs who are not entirely dependent on the owner.
3. Solid Contracts: Established relationships and contracts with local school districts and a healthy mix of insurance payers.
4. Regulatory Compliance: A spotless record with the state’s licensing boards and healthcare regulations.
The Sale Process
Understanding the path from decision to closing can make the journey feel more manageable. While every sale is unique, the process generally follows a structured sequence. It begins with Preparation, where you organize your financial and operational documents to tell a clear and compelling story. Next comes a professional Valuation to establish a credible asking price.
From there, the process moves to confidential marketing to a curated list of qualified buyers. Once interest is established, you enter the most critical phase: Due Diligence. This is where a buyer inspects every aspect of your practice, from financial records to employee contracts and compliance documentation. It is the stage where many deals encounter unexpected challenges. Successfully navigating this leads to the final negotiations and Closing the transaction.
Valuation
Many practice owners believe their company’s worth is a simple multiple of yearly revenue. The reality is more nuanced. Sophisticated buyers value your practice based on its Adjusted EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. This figure is “adjusted” to normalize for owner-specific expenses and one-time costs to show the practice’s true, ongoing profitability.
This Adjusted EBITDA figure is then multiplied by a number the “multiple.” That multiple is not fixed. It changes based on risk and opportunity.
| Valuation Factor | How It Impacts Your Multiple |
|---|---|
| Provider Reliance | Practices that run smoothly without the owner’s daily involvement command higher multiples. |
| Payer Mix | A healthy blend of stable, in-network insurance contracts is seen as less risky than heavy cash-pay. |
| Growth Profile | A documented history of growth and clear future opportunities will earn a premium valuation. |
| Clinical Staff | A strong, tenured team of BCBAs is a major asset that buyers will pay more for. |
Getting this right is the foundation of a successful sale.
Post-Sale Considerations
The day you sign the closing documents is not the end of the story. It is the beginning of a new chapter for you, your staff, and your clients. Thinking about this future from the start is one of the most important things you can do.
Your goals will shape the deal structure. Are you looking for a clean break, or do you want to remain involved clinically? Do you want to protect your team’s future? The answers influence whether you pursue a full sale or a strategic partnership that includes rollover equity. The structure of your sale also has major implications for your after-tax proceeds. A well-planned exit protects your financial future and ensures the legacy of care you built continues to thrive under new ownership.
Frequently Asked Questions
Why is now a good time to sell a School & Community-Based ABA practice in New Hampshire?
The market for ABA services is expanding due to increasing awareness and demand for Autism Spectrum Disorder therapies nationally and locally. New Hampshire supports ABA therapy with laws mandating insurance coverage, providing a stable revenue foundation and attracting buyers.
What key factors do buyers look for when acquiring an ABA practice in New Hampshire?
Buyers prioritize practices with clean financials (consistent revenue and profitability), a strong and stable team of licensed BCBAs, solid contracts with schools and insurers, and excellent regulatory compliance with state licensing and healthcare laws.
How is the value of an ABA practice determined during the sale?
Value is primarily based on Adjusted EBITDA, representing the practice’s normalized ongoing profitability. This figure is multiplied by a variable multiple influenced by factors such as provider reliance, payer mix, growth history, and the strength of the clinical team.
What steps are involved in the sale process of an ABA practice?
The process usually includes Preparation (organizing documents), Valuation (setting a credible price), Confidential Marketing to potential buyers, Due Diligence (buyer inspection of records and compliance), followed by Final Negotiations and Closing the sale.
What should practice owners consider for post-sale planning?
Owners should plan their involvement after the sale (full exit or clinical role), decide on protecting their team‚Äôs future, and consider the deal structure‚Äôs impact on after-tax proceeds. Proper exit planning ensures financial security and sustains the practice’s care legacy.