The San Antonio market for clinic-based ABA therapy is experiencing a unique period of growth and consolidation, creating major opportunities for practice owners. Selling your practice is more than a transaction. It is a defining moment in your career. This guide offers insights into the current market, what buyers are looking for, and how to navigate the process to achieve your goals. Proper preparation is the key to maximizing your outcome.
San Antonio’s Favorable Market Conditions
The landscape for ABA therapy in San Antonio is strong. An increasing awareness of Autism Spectrum Disorder (ASD) and expanded insurance coverage have created sustained demand for high-quality clinical services. This environment is favorable for practice owners considering a transition.
High Demand Meets Active Consolidation
San Antonio is not just a growing market. It is also a target for larger healthcare organizations and private equity groups. These buyers are looking to expand their footprint in Texas, and they see the value in established local practices with strong community ties. This trend means there are well-capitalized buyers actively looking for acquisition opportunities, but it also increases the level of sophistication required to negotiate a top-tier deal. Understanding how to position your practice for these buyers is critical.
What Sophisticated Buyers Truly Value
When a buyer evaluates your San Antonio practice, they look past the surface-level numbers. They want to see a durable, efficient, and scalable operation. The quality and stability of your clinical team, especially your BCBAs, is a primary concern. They will assess your operational systems for billing, scheduling, and patient intake. They will also look for proof of high-quality care, such as accreditations or strong patient outcome data. Demonstrating a clear path for future growth, whether through expanding services or opening new locations, can significantly increase their interest and your potential valuation. A practice that has these elements organized and well-documented is seen as a lower-risk, higher-value asset.
Current M&A Trends in ABA Therapy
The national M&A trends are clearly reflected in the San Antonio market. For owners, this activity creates a powerful opportunity if you are prepared. Here is what we are seeing:
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Private Equity is the Primary Buyer. PE-backed platforms are driving a majority of the transactions. They have the capital to pay premium prices for practices that fit their strategic goals.
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Scale is Rewarded. Buyers are searching for practices that can serve as a “platform” for future growth or as a significant “add-on” to an existing platform. Practices that are scalable beyond the $3-5 million revenue mark are in high demand.
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Proactive Sellers Win. The most successful sales do not happen by chance. They result from a proactive, confidential process designed to create competitive tension among multiple qualified buyers. Waiting for an unsolicited offer rarely leads to the best outcome.
How a Successful Sale Unfolds
Selling your practice is a structured journey, not a single event. It begins long before you speak to a buyer, with careful preparation of your financial and operational documents. The next step is a confidential marketing process where your practice is presented to a curated list of vetted, strategic buyers without disrupting your staff or patients. This creates a competitive environment. Once interest is established, you move into the due diligence phase, where the buyer verifies the information you have provided. This is often the most demanding stage and where many deals falter without expert guidance. The final stage involves negotiating the definitive agreements to ensure the legal and financial terms protect your interests and legacy.
Determining Your Practice’s True Market Value
A common question we hear is, “What is my practice worth?” The answer is more nuanced than a simple formula. Sophisticated buyers value your practice based on a multiple of its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA represents your practice’s true cash flow, adding back owner perks and one-time expenses. The multiple applied to that EBITDA figure is not fixed. It changes based on risk and opportunity factors like your practice’s size, staff structure, and growth potential.
| Practice Adjusted EBITDA | Typical Multiple Range | Valuation Potential |
|---|---|---|
| Under $1 Million | 3.5x – 5.5x | Strong |
| $1M – $3 Million | 5.5x – 7.5x | Significant |
| Over $3 Million | 8.0x – 10.0x+ | Platform Premium |
An expert valuation uncovers your true Adjusted EBITDA and tells the story that justifies the highest possible multiple.
Planning for Life After the Transaction
The structure of your deal is just as important as the sale price. Your role after the sale, the impact on your tax liability, and your long-term financial security are all determined during negotiations. Many deals today include components like an earnout, where you can earn additional proceeds by hitting future performance targets. Some also include an equity rollover, which allows you to retain a stake in the larger, combined company. This can provide a “second bite of the apple” when that larger entity is sold again in the future. Planning for this transition protects not just your financial future, but also the legacy of the practice you built and the continuity of care for your patients.
Frequently Asked Questions
What makes the San Antonio market favorable for selling an ABA Therapy practice?
The San Antonio market benefits from increasing awareness of Autism Spectrum Disorder (ASD) and expanded insurance coverage, resulting in sustained demand for high-quality clinical ABA therapy services. Additionally, the market is experiencing growth and consolidation, attracting well-capitalized buyers such as larger healthcare organizations and private equity groups looking to expand in Texas.
What do sophisticated buyers look for when evaluating an ABA Therapy practice in San Antonio?
Sophisticated buyers prioritize practices that are durable, efficient, and scalable. They assess the quality and stability of the clinical team, especially BCBAs, as well as operational systems like billing, scheduling, and patient intake. Proof of high-quality care (accreditations, patient outcome data) and a clear growth path through service expansion or new locations also increase buyer interest and practice valuation.
Who are the primary buyers in the San Antonio ABA Therapy practice market and what trends should sellers be aware of?
Private equity-backed platforms are the primary buyers, paying premium prices for practices that align with their strategic goals. There is strong demand for scalable practices, especially those generating $3-5 million or more in revenue. Proactive sellers who create competitive tension among multiple buyers through a confidential process tend to achieve the best outcomes.
How is the value of an ABA Therapy practice in San Antonio determined?
Practice value is typically based on a multiple of its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects true cash flow after adding back owner perks and one-time expenses. The multiple varies by practice size and risk factors: smaller practices (under $1 million EBITDA) have multiples of 3.5x-5.5x, mid-sized ($1-$3 million) 5.5x-7.5x, and large (over $3 million) 8.0x-10.0x or more, often called a platform premium.
What should I consider when planning for life after selling my ABA Therapy practice in San Antonio?
It’s important to consider deal structure aspects including your role post-sale, tax liabilities, and long-term financial security. Many deals include an earnout provision to earn additional proceeds based on future performance, or an equity rollover allowing you to retain a stake in the combined larger company. Proper planning protects your financial future, the legacy of your practice, and continuity of care for your patients.
