Executive Summary
The market for School and Community-Based ABA practices in Wisconsin is evolving. For practice owners, this presents both significant opportunity and new questions. Understanding your practice’s position, the current buyer landscape, and the key steps in a sale is the first step toward a successful transition. This guide provides a clear overview to help you navigate the path forward, whether you are planning an exit in two years or just starting to explore your options.
Market Overview
The conditions for selling a high-quality ABA practice in Wisconsin are strong. The demand for services is not just stable. It is growing.
High Demand for Services
With over 3,000 children currently enrolled in ABA therapy across the state, the need for established, community-integrated practices is clear. Buyers are actively looking for practices with a solid reputation and proven client outcomes. This high demand creates a favorable environment for sellers who are properly prepared for a transaction.
The Staffing Opportunity
However, the market is not without its challenges. Data shows that 56% of Wisconsin providers report at least 15% of their treatment hours go unstaffed. While a challenge, this is also an opportunity. If your practice has developed stable staffing models and efficient operations, buyers will see that as a significant advantage and a premium asset.
Key Considerations
When selling an ABA practice, the story you tell is just as important as your financial statements. Buyers, especially sophisticated private equity groups, are looking for more than just revenue. They want to understand the quality and sustainability of your operations. You need to clearly articulate the unique value of your community-based model, which promotes better skill generalization for clients. Highlighting your commitment to evidence-based practices and any accreditations, like from the BHCOE, signals clinical excellence.
Beyond that, a potential buyer will look closely at three key areas:
1. Your Staff: The qualifications and stability of your team, from certified BCBAs to supervised RBTs, are a core asset.
2. Your Payer Contracts: Strong, in-network insurance contracts demonstrate consistent revenue.
3. Your Compliance: Demonstrating adherence to Wisconsin-specific regulations provides buyers with confidence.
Market Activity
While specific sale prices for Wisconsin ABA practices are not always public, the broader market trend is clear. private equity investment in autism services continues to grow, which has created a very active M&A environment. This is not just a national trend. It is happening in Wisconsin. For practice owners, this activity means a few things.
First, there are more potential buyers in the market than ever before. Second, these buyers are often sophisticated and looking for well-run practices to serve as a platform for growth. Third, this competition can drive premium valuations for the right practices. The key is knowing how to position your practice to attract these buyers and create a competitive process. Timing your entry into this active market can have a significant impact on your final outcome.
Sale Process
Selling your practice is a structured process, not a single event. Understanding the key stages helps you prepare for what is ahead and avoid common pitfalls. While every sale is unique, the journey generally follows a common path. The due diligence stage is often the most demanding part of the process. It is where a buyer verifies every aspect of your business, from financial records to staff credentials. Proper preparation here is critical to maintaining momentum and trust.
| Sale Stage | What It Involves | Why Guidance Helps |
|---|---|---|
| 1. Valuation & Prep | Understanding your practice’s true value and organizing key documents. | Establishes a realistic price and prevents surprises later. |
| 2. Marketing | Confidentially identifying and approaching a curated list of qualified buyers. | Ensures you reach the right buyers, not just any buyer. |
| 3. Due Diligence | The buyer’s deep review of your finances, operations, and compliance. | Prevents deal fatigue and protects you from intrusive requests. |
| 4. Closing | Finalizing legal documents and transitioning ownership. | Navigates final negotiations and ensures a smooth handover. |
Valuation
Determining what your ABA practice is truly worth is more than a simple calculation. Buyers look at your practice’s value as a combination of its cash flow and its future potential. The process starts with calculating your Adjusted EBITDA. Think of this as your practice’s true profit after adding back personal expenses or one-time costs. It shows a buyer the real cash flow they can expect.
That Adjusted EBITDA is then multiplied by a number, called a “multiple,” to arrive at your practice’s value. The multiple isn’t random. It is influenced by several factors:
1. Provider Reliance: Practices that do not depend entirely on the owner command higher multiples.
2. Growth & Scale: Larger practices with a clear path for growth are seen as less risky and more valuable.
3. Payer Mix: A healthy mix of reliable insurance payers is attractive to buyers.
Post-Sale Considerations
A successful sale is not just about the price you get at closing. It is also about what happens the day after. Planning for the transition is key to protecting your legacy, ensuring your team is cared for, and securing your own financial future. The structure of your deal plays a large role in this.
Preserving Your Legacy
The right buyer will respect the culture you have built. We help you find a partner who aligns with your clinical values, ensuring continuity of care for your clients and stability for your staff.
Structuring Your Exit
Modern deals offer more options than a simple cash sale. Some owners choose to “roll over” a portion of their equity, retaining a stake in the larger, growing company. This gives you a potential second financial win down the road. Structuring the sale correctly has major tax implications and can define your role, if any, in the practice post-sale.
Frequently Asked Questions
What is the current market demand for School & Community-Based ABA practices in Wisconsin?
The demand for School & Community-Based ABA services in Wisconsin is strong and growing, with over 3,000 children currently enrolled in ABA therapy across the state. Buyers are actively seeking practices with strong reputations and proven client outcomes, making it a favorable environment for sellers who are well-prepared.
What are buyers looking for beyond financial statements when purchasing an ABA practice?
Buyers, especially private equity groups, look for quality and sustainability of operations. They want to understand the unique value of a community-based model, evidence-based practices, accreditations such as BHCOE, staff qualifications and stability, strong payer contracts, and compliance with Wisconsin regulations.
How is the valuation of a School & Community-Based ABA practice determined?
Valuation is based on the practice’s Adjusted EBITDA (true profit after adjustments) multiplied by a market multiple. Factors influencing the multiple include provider reliance (less reliance on the owner is better), growth potential, scale of the practice, and payer mix with reliable insurance contracts.
What are the key stages involved in the sale process of an ABA practice?
The sale process typically involves four key stages: 1) Valuation & Preparation – understanding true value and organizing documents, 2) Marketing – confidentially targeting qualified buyers, 3) Due Diligence – buyer’s thorough review of finances and operations, and 4) Closing – finalizing legal documents and ownership transition.
What post-sale considerations should ABA practice owners keep in mind?
Post-sale, it’s important to plan the transition to protect your legacy, ensure team stability, and secure your financial future. Choosing the right buyer who aligns with your clinical values is crucial. Structuring the deal can include equity rollover options and has significant tax and role implications after the sale.