Selling your pediatric physical therapy practice is a major decision. In Oregon, the market is strong, with significant growth in both the statewide physical therapy sector and the specialized pediatric market. This creates a valuable opportunity for owners. However, turning this opportunity into a successful outcome requires a strategic approach that maximizes value, protects your legacy, and aligns with your personal goals. This guide provides the key insights you need to navigate the process.
A Thriving Market for Pediatric PT in Oregon
The current market for pediatric physical therapy in Oregon is exceptionally strong, supported by powerful local and national trends. If you are a practice owner, understanding these forces is the first step toward timing your exit for a premium valuation. The data shows a clear window of opportunity.
Here are the key factors driving value:
1. Statewide Industry Growth: The physical therapy industry in Oregon is healthy and expanding. Projections show it growing to $691.6 million by 2025. This provides a stable foundation for any practice acquisition.
2. Pediatric Specialization Demand: Your specialty is in a high-growth sector. The global pediatric physiotherapy market is expected to nearly double, reaching $88.4 billion by 2031 with an impressive 8.4% annual growth rate.
3. National Tailwinds: The entire U.S. physical therapy industry is projected to grow significantly, with a 14% increase in employment for physical therapists estimated through 2033. Buyers are seeking to invest in this long-term growth.
Key Considerations for Oregon Sellers
Beyond broad market trends, selling a practice in Oregon involves specific factors that buyers will scrutinize. Preparing for these ahead of time can dramatically improve your negotiating position and sale price.
Regulatory Landscape
Oregons state regulations offer a distinct advantage. The state allows for unrestricted direct access to physical therapy, meaning patients do not need a physician referral. This widens your patient base and is a significant plus for potential buyers. Ensuring your practice is fully compliant with the Oregon Board of Physical Therapy (OBPT) and HIPAA is non-negotiable and demonstrates low operational risk.
Operational Strength
A practice that runs smoothly is a practice that sells well. Buyers look for documented, efficient systems for patient intake, scheduling, and billing. A well-trained and stable team is also a major asset, especially given the national shortage of physical therapists.
Financial Preparedness
Your financial records must be clean and easy to understand. Buyers will want to see clear revenue trends, profit margins, and key metrics like Days in Accounts Receivable. We find that many successful practices leave value on the table simply because their financial story is not presented clearly.
Market Activity and Buyer Landscape
The current M&A market is active, with various types of buyers looking for quality practices like yours. Understanding their motivations is key to finding the right partner. Not all buyers are the same, and the best fit depends entirely on your goals for your future, your team, and your legacy. Timing a sale when multiple buyer types are competing for assets can create the competitive tension needed to achieve a premium valuation.
| Buyer Type | Primary Motivation | What This Means for You |
|---|---|---|
| Private Equity Group | Platform growth and financial return | Often offers the highest valuations and resources for expansion, but may involve a new corporate structure. |
| Hospital or Health System | Expanding service lines and patient reach | Can provide strong community integration and referral streams, often focused on continuity of care. |
| Regional PT Group | Geographic expansion and market share | A strategic partner who understands the business and seeks to integrate your practice into a larger network. |
The Sale Process De-Mystified
Selling your practice follows a structured process. While it might seem complex, thinking of it in phases can make it more manageable. Running a confidential, organized process is the best way to protect your interests and drive competition among buyers, which is far better than reacting to a single, unsolicited offer.
Here are the four primary stages:
- Preparation and Valuation: This is the foundation. We work with you to analyze your financials, normalize earnings, and prepare a confidential marketing package that tells your practices story. An accurate valuation sets a realistic and defensible price expectation.
- Confidential Marketing: We identify and discreetly approach a curated list of qualified buyers who are the best fit for your practice and your goals. Your confidentiality is protected throughout this stage.
- Negotiation and Due Diligence: After receiving initial offers, we help you negotiate the best terms. The selected buyer then performs due diligence, where they verify the legal, financial, and operational health of your practice. This is where many deals fail, but proper preparation prevents surprises.
- Closing: Final legal documents are drafted and signed, funds are transferred, and the transition of ownership is completed according to a pre-arranged plan.
Understanding Your Practice’s True Value
How much is your practice worth? Many owners look at simple rules of thumb, like a multiple of annual revenue. Sophisticated buyers, however, value practices based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents the true cash flow of the business. It is calculated by taking your net income and adding back owner-specific expenses like an above-market salary, personal car leases, or other non-essential business costs. A practice with $700K in Adjusted EBITDA is far more valuable than one with $700K in revenue. This single distinction is often the difference between an average price and a life-changing one.
Planning for Life After the Sale
A successful transaction is not just about the price. It is about what happens the day after you close. A well-designed deal plan will address your personal and professional goals for the future, ensuring the transition is smooth for you, your team, and your patients.
Protecting Your Team and Legacy
For many owners, the well-being of their long-time staff and the continuation of their life’s work are just as important as the financial outcome. The deal structure can include provisions to protect your team and ensure your practice’s mission continues under new ownership. Finding a buyer whose culture aligns with yours is a critical part of our process.
Structuring Your Financial Future
The structure of your sale has major implications. Some owners want to leave the practice completely, while others may want to stay on for a few years. Options like an earnout, where you can receive additional payments based on future performance, or an equity rollover, where you retain a stake in the new, larger company, can provide continued upside and a “second bite at the apple” when the new entity is sold years later.
Frequently Asked Questions
What makes now a good time to sell a Pediatric Physical Therapy practice in Oregon?
The market for pediatric physical therapy in Oregon is currently strong due to significant statewide industry growth projected to reach $691.6 million by 2025, high demand for pediatric specialization, and supportive national trends in physical therapy employment growth. This creates a valuable window of opportunity for sellers to achieve premium valuations.
How does Oregon’s regulatory environment impact the sale of a Pediatric PT practice?
Oregon allows unrestricted direct access to physical therapy, meaning patients can receive therapy without a physician referral. This expands the potential patient base, making practices more attractive to buyers. Additionally, compliance with the Oregon Board of Physical Therapy and HIPAA regulations is crucial to demonstrate low operational risk to prospective buyers.
What financial metrics do buyers focus on when evaluating a Pediatric Physical Therapy practice for sale?
Sophisticated buyers value practices based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects the true cash flow of the business. They want clean, understandable financial records showing clear revenue trends, profit margins, and key metrics like Days in Accounts Receivable. Properly presenting the financial story can significantly affect the sale price.
Who are the typical buyers of Pediatric Physical Therapy practices in Oregon and what are their motivations?
Buyers typically fall into three categories: Private Equity Groups looking for platform growth and financial returns; Hospitals or Health Systems seeking to expand service lines and patient reach; and Regional PT Groups aiming for geographic expansion and market share. Understanding these buyer motivations can help sellers find the best fit for their goals and create competitive tension for better offers.
What are important post-sale considerations for Pediatric Physical Therapy practice owners?
Owners should plan for what happens after the sale to ensure a smooth transition for themselves, their team, and their patients. Key considerations include protecting the legacy and well-being of the staff, structuring the financial future possibly through earnouts or equity rollovers, and finding a buyer whose culture aligns with the existing practice to maintain continuity of care.