If you own an Orthopedic and Post-Surgical Rehab practice in Nebraska, the market is presenting a unique moment. Growth is strong, and buyers are interested. But turning that opportunity into a successful sale requires a clear strategy. This guide breaks down the current market landscape, what buyers are looking for in a practice like yours, and how to prepare for a successful transition. We’ll outline how to navigate the process from start to finish.
Nebraska Market Overview: A Growing Demand for Rehab Services
The current climate for physical therapy in Nebraska is strong. Both local and national trends point toward sustained growth, driven by an aging population and a greater focus on non-invasive recovery solutions. For a practice owner, this translates into a sellers market. You have an asset that is in high demand.
The numbers tell a compelling story:
- State-Level Growth: The Physical Therapists industry in Nebraska is officially on a growth trajectory, according to IBISWorld.
- National Job Surge: Nationally, the demand for physical therapists is expected to increase by 14% by 2033, a rate much faster than the average for all occupations.
- Aging Demographics: An increasing number of older adults in Nebraska need orthopedic and post-surgical rehab, providing a stable and growing patient base.
This isn’t just a wave of good news. It is a specific window of opportunity for practice owners who are prepared to act.
Key Considerations Beyond the Numbers
A favorable market is a great starting point, but it does not guarantee a successful sale. The most important work happens inside your practice long before a buyer is at the table. You need to get your financial and legal house in order. This means reviewing everything from equipment leases and employment agreements to your billing processes and compliance with Nebraska’s specific healthcare regulations. A buyer will scrutinize every detail during due diligence. Being prepared for this not only smooths the process but also protects your practice’s value from last-minute renegotiations.
A Snapshot of Market Activity
The growth in demand is fueling significant transaction activity. Large regional health systems and private equity groups are actively looking to partner with or acquire successful orthopedic rehab practices. They see the value in well-run, profitable clinics with a strong presence in their communities. This national trend has a direct impact on the opportunities available to you in Nebraska.
Heres a look at the financial landscape:
| Metric | U.S. Market Data | What This Means for You |
|---|---|---|
| Market Size | $44.8 Billion (2022) to $61.7 Billion (2030 est.) | You are in a large, growing, and financially attractive sector. |
| Average Annual Clinic Sales | ~$871,000 | Your practice is a valuable asset with proven revenue potential. |
| Average Net Profit Margin | 14% to 20% | Profitable practices are the most sought-after acquisition targets. |
The Sale Process Is a Marathon, Not a Sprint
Many owners think that selling a practice starts with finding a buyer. In reality, that is one of the later steps. The process truly begins with preparation. It involves a deep dive into your financials, operations, and market position to build a compelling story for potential buyers. After this confidential preparation phase, your advisor can identify and approach a curated list of qualified buyers without your name ever becoming public. This creates a competitive environment that drives up value. From there, it moves to negotiating offers, navigating the intensive due diligence period where the buyer verifies everything, and finally, closing the transaction. A well-managed process protects your time, your confidentiality, and your final sale price.
Understanding Your Practice’s True Value
Your practice is worth more than its equipment and bank balance. Sophisticated buyers value your business based on its profitability. The key metric they use is Adjusted EBITDA.
What is Adjusted EBITDA?
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. Its a measure of your practice’s core profitability. “Adjusted” EBITDA is even more important. We find it by taking your stated profit and adding back owner-specific expenses that a new owner would not incur. This could include things like a vehicle leased through the practice, personal travel, or an above-market owner’s salary. This simple step often reveals significant hidden value.
How is the Multiple Applied?
Once your Adjusted EBITDA is calculated, a multiple is applied to it to determine the enterprise value. For physical therapy practices, this multiple is often between 3x and 6x. Where your practice falls in that range depends on factors like your location, provider mix, patient base, and growth potential. A practice that isn’t reliant on a single owner will always command a higher multiple.
Getting this calculation right is the foundation of a successful sale. Most owners are surprised to learn what their practice is truly worth after it has been properly analyzed.
Life After the Sale: Planning Your Next Chapter
The final closing is not the end of the story. You need a plan for what comes next. Do you want to retire completely? Are you interested in staying on to practice without the burdens of ownership? Or would you prefer a strategic partnership where you sell a portion of your practice but retain equity, giving you a “second bite of the apple” when the larger entity sells in the future? The right deal structure is one that aligns with your personal, financial, and professional goals. We help owners design their ideal exit, ensuring the transition protects not only their financial future but also their legacy and the well-being of their staff.
Frequently Asked Questions
What is the current market outlook for selling an Orthopedic and Post-Surgical Rehab practice in Nebraska?
The Nebraska market for Orthopedic and Post-Surgical Rehab practices is very strong, with growth driven by an aging population and increased demand for non-invasive recovery. This creates a seller’s market with high buyer interest.
What financial metrics do buyers focus on when evaluating an Orthopedic Rehab practice?
Buyers primarily focus on Adjusted EBITDA, which measures core profitability by adding back owner-specific expenses. They apply a multiple typically between 3x and 6x to this figure to determine the practice’s enterprise value.
What preparation steps should I take before selling my rehab practice in Nebraska?
Preparation includes thorough financial and legal reviews, including checking equipment leases, employment agreements, billing processes, and compliance with Nebraska healthcare regulations. Being organized helps avoid issues during buyer due diligence and protects your practice’s value.
Who are the typical buyers for Orthopedic and Post-Surgical Rehab practices in Nebraska?
Buyers commonly include large regional health systems and private equity groups looking to acquire well-run, profitable clinics with strong community presence. These buyers are active due to market growth and the sector’s financial attractiveness.
What options do I have for life after selling my practice?
Life after the sale can vary depending on your goals. Options include full retirement, continuing to practice without ownership burdens, or entering a strategic partnership where you sell part of your practice but retain equity, potentially benefiting from future sales.
