Selling your Occupational and Hand Therapy practice is a major decision. In Nevada, the market presents a significant opportunity for owners who are well-prepared. The state’s growing demand for therapy services creates a favorable environment for sellers. However, achieving the best outcome requires a clear understanding of your practice’s value and a strategic approach to the sale process. Proper preparation is the key to maximizing your final practice value. This guide will walk you through the current landscape.
Curious about what your practice might be worth in today’s market?
Market Overview
The Nevada market for Occupational and Hand Therapy is strong and getting stronger. The environment is not just stable. It is actively growing, creating a promising window for practice owners considering a sale. Several factors point to a healthy outlook for buyers and sellers alike.
Strong Local Demand
Nevada has seen a remarkable 97.8% increase in the number of licensed occupational therapists per capita. This surge directly reflects a growing population in need of OT services. For a potential buyer, this signals a marketplace with a built-in, expanding patient base and a clear path to future growth.
Favorable Economics
The OT profession is thriving nationally with projected 16% growth through 2030. In Nevada specifically, the median salary for an OT was over $107,000 in 2023. This indicates a profitable industry where skilled professionals can build successful careers. It makes your practice an attractive asset for buyers looking for a solid return on investment.
Key Considerations
While market trends are favorable, a buyer’s decision comes down to the unique strengths of your specific practice. Your financials tell part of the story, but the intangible assets often drive premium value. A strong, loyal patient base and established referral networks are difficult to replicate and highly sought after. The quality and stability of your staff, especially if you have a Certified Hand Therapist (CHT), adds significant worth. We see that buyers look closely at these elements. They want to understand your practice’s reputation in the community and its compliance with Nevada’s specific licensing standards. Telling this story effectively is just as important as presenting clean financial statements.
Every practice sale has unique considerations that require personalized guidance.
Market Activity
The positive market conditions in Nevada are translating into real transaction activity. Here is what we are seeing on the ground.
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Increased Buyer Interest. Private equity groups, regional health systems, and other large therapy platforms are actively looking for expansion opportunities in growth states like Nevada. This creates a competitive environment for well-run practices. More buyers means more chances to find the right partner for your legacy.
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A Spectrum of Valuations. We see single-location clinics fetching prices in the hundreds of thousands, while larger, multi-location practices can command valuations in the millions. This wide range shows that value is not one-size-fits-all. It depends entirely on profitability, scale, and strategic positioning.
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The Importance of Readiness. In an active market, opportunities can arise quickly. Buyers move fast, and being unprepared means you could leave money on the table or accept a deal with unfavorable terms. Having your financials in order and a clear strategy before you go to market is what separates an average outcome from a great one.
Timing your practice sale correctly can be the difference between average and premium valuations.
Sale Process
Selling your practice follows a structured path, but navigating it can be complex. The journey begins long before a buyer is involved, starting with deep preparation and valuation. Once your practice is ready, the next step is confidential marketing to a curated list of qualified buyers. This generates interest and leads to initial offers. After you select a preferred buyer, you enter a period of negotiation to finalize the terms in a Letter of Intent. This is followed by due diligence, where the buyer verifies all financial and operational details of your practice. It is a critical stage where many deals face unexpected hurdles. The final step is closing the transaction. Every stage requires careful management to protect your interests and confidentiality.
The due diligence process is where many practice sales encounter unexpected challenges.
Valuation
How is your practice actually valued? Forget simple rules of thumb like a multiple of your annual revenue. Sophisticated buyers focus on one key metric. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your profit by adding back one-time expenses and personal owner benefits to show the true cash flow of the business. Two practices with the same revenue can have vastly different Adjusted EBITDA, and therefore, different valuations. The final value is determined by applying a multiple to that Adjusted EBITDA. The multiple itself is not fixed. It changes based on several factors.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Reliance | Dependent on owner | Associate-driven model |
| Growth Profile | Stable, flat revenue | Consistent, documented growth |
| Referral Sources | Concentrated on 1-2 sources | Diverse mix of referral partners |
| Specialization | General OT services | Niche services like Hand Therapy |
Understanding these drivers is the first step toward maximizing your practice’s worth.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Post-Sale Considerations
The moment you sign the closing documents is not the end of the story. A successful transition requires planning for what comes next. You will need to define the level of support you will provide the new owner to ensure a smooth handover for patients and staff. Protecting your team is a key part of protecting your legacy. In addition, the structure of the deal itself has major long-term implications. Will you take all cash at close, or is there an earnout tied to future performance? Will you “roll over” some of your equity and partner with the new owner for future growth? Each path has different tax consequences and levels of future involvement. Planning for these post-sale realities is critical to ensuring the transaction meets all of your personal and financial goals.
Your legacy and staff deserve protection during the transition to new ownership.
Frequently Asked Questions
What is the current market outlook for selling Occupational & Hand Therapy practices in Nevada?
Nevada’s market for Occupational and Hand Therapy is strong and growing, with a significant increase in licensed therapists and increasing patient demand. This makes it a favorable environment for sellers seeking to maximize the value of their practices.
What factors influence the valuation of an Occupational & Hand Therapy practice in Nevada?
Valuation is primarily based on Adjusted EBITDA and influenced by factors such as provider reliance (owner-dependent vs. associate-driven), growth profile, diversity of referral sources, and specialization (general OT services vs. niche services like Hand Therapy). These elements determine the multiple applied to EBITDA for final valuation.
What are key considerations to prepare for when selling my practice?
Beyond financials, strong intangible assets like loyal patient base, referral networks, staff quality (especially having a Certified Hand Therapist), community reputation, and compliance with Nevada licensing are critical. Proper preparation and a clear strategy are essential to maximize sale outcomes.
What does the sale process of an Occupational & Hand Therapy practice typically involve?
The sale process includes thorough preparation and valuation, confidential marketing to qualified buyers, negotiation of a Letter of Intent, detailed due diligence, and closing the transaction. Each stage requires careful management to protect your interests and confidentiality.
What should I plan for after selling my practice?
Post-sale planning includes determining your level of support during transition, protecting staff and legacy, and deciding on deal structure—whether taking cash upfront, earnouts, or equity rollover. These affect tax outcomes and future involvement, so thoughtful transition planning is necessary.
