Guide to Selling a Sports Medicine & Performance Therapy Practice in Georgia

If you are a Sports Medicine & Performance Therapy practice owner in Georgia, the current market presents a significant opportunity. The demand for physical therapy services is high, and strategic buyers are actively acquiring practices across the state. However, a successful sale requires more than just a good market. It demands meticulous preparation and a clear strategy to maximize your practice’s value and ensure a smooth transition. This guide will walk you through the key aspects you need to understand.

Market Overview

The conditions for selling your practice in Georgia are strong. The physical therapy sector is growing, with national employment for therapists projected to increase by nearly 14% over the next decade. Outpatient clinics like yours are particularly attractive. They are more cost-effective than hospital services, making them prime targets for acquisition. You’ve likely noticed larger groups like PT Solutions expanding in Georgia. This consolidation means there is a healthy appetite for practices, creating a competitive environment for sellers who are properly positioned.

Key Considerations for a Successful Sale

A strong market doesn’t guarantee a top-dollar sale. Buyers pay for well-run businesses that are easy to understand and transition. Here are three areas we see that make the biggest difference.

Professionalize Your Financials

Buyers first look at your financial statements. You need clean, accurate records. This means having clear profit and loss statements and a balance sheet ready for review. It also means identifying personal expenses that run through the business. A buyer will want to see the practice’s true profitability, separate from your personal finances.

Systematize Your Operations

Is your practice’s success tied completely to you? Practices that are less reliant on the owner are more valuable. Document your clinical protocols, your front-office procedures, and your referral-tracking systems. A practice that can run smoothly without the owner’s constant presence is a much more attractive asset to an acquirer.

Define Your Exit Goals

What do you want to happen after the sale? Do you want to leave immediately, or are you open to working for the new owner for a few years? Do you need a specific amount of cash at closing to retire? Answering these questions early creates a clear exit strategy. It guides every decision you make during the negotiation process.

Current Market Activity

The M&A market for therapy practices in Georgia is not just theoretical. It is very active. Large, well-funded groups like Athletico Physical Therapy and PT Solutions are making strategic acquisitions to grow their footprint, especially in the Metro Atlanta area and beyond. This creates a dynamic environment. In addition to these large players, we also see successful local practitioners looking to acquire a second or third location, as well as private equity-backed groups entering the state. This means there are multiple types of potential buyers for your practice. A competitive process involving several interested parties is the best way to ensure you receive the highest possible value.

The Practice Sale Process

Selling your practice follows a structured path. While every deal is unique, the journey typically involves these five phases.

1. Valuation and Preparation. This is where you determine your practice’s market value and assemble all necessary financial and operational documents into a confidential package for buyers. You only get one chance to make a first impression.
2. Confidential Marketing. Your advisor confidentially contacts a curated list of qualified strategic and financial buyers who are the best fit for your practice and goals.
3. Managing Offers. You will likely receive initial offers, called Letters of Intent (LOI). This is the stage where you negotiate the key terms of the deal, including price, structure, and your future role, if any.
4. Navigating Due diligence. This is the most intensive phase. The buyer will conduct a deep-dive investigation into every aspect of your practice. Many deals face challenges here if the seller is not prepared.
5. Closing and Transition. Once due diligence is complete, final legal documents are drafted and signed. The sale is finalized, funds are transferred, and you begin the process of transitioning the practice to the new owner.

How Your Practice is Valued

Buyers determine your practice’s value using a straightforward method. They calculate your Adjusted EBITDA and apply a market-based multiple. Adjusted EBITDA is a measure of your true cash flow. It is your profit before interest, taxes, depreciation, and amortization, with owner-specific and one-time expenses added back in. This number is then multiplied by a figure that reflects your practice’s quality and growth potential. Physical therapy practices often trade in a range of 2x to 5x their Adjusted EBITDA. Where your practice falls in that range depends on several factors.

Planning for Life After the Sale

The work isn’t over once the deal closes. A successful exit means you are prepared for what comes next. Proper planning ensures you protect your financial future and your legacy.

1. Structuring for Tax Efficiency. The structure of your sale has major implications for your after-tax proceeds. Planning this with an advisor before you go to market can significantly increase the amount of money you actually keep.
2. Protecting Your Team and Patients. A smooth transition is important for everyone. A good plan involves communicating the change effectively, ensuring staff are retained, and providing continuity of care for your patients. This protects the goodwill you spent years building.
3. Understanding Your Ongoing Role. Many deals include an earnout, where a portion of the sale price is paid later if the practice hits certain performance targets. Some deals may also require you to continue working for a period. It is important to understand and negotiate these terms carefully.