Guide to Selling a Pediatric Physical Therapy Practice in Louisiana

Executive Summary

Selling your Pediatric Physical Therapy practice in Louisiana involves navigating a unique and specialized market. This is not like selling a general practice. The value drivers, potential buyers, and strategic considerations are distinct. This guide provides a clear overview of the current landscape, from understanding your practice’s true worth to planning for your legacy, helping you prepare for one of the most important transitions of your career.

Market Overview

When you consider selling, the first question is often about value. While every practice is different, we can look at the broader market for context. Across Louisiana, general medical practices recently showed a median revenue of around $800,000, leading to sale prices in the neighborhood of $600,000. For physical therapy practices specifically, the valuation range is often tied directly to revenue.

Understanding the Multiples

A common starting point for a physical therapy practice valuation is a multiple of revenue, typically between 0.5x and 2.5x. A practice with strong, consistent profits and a great reputation will command a higher multiple than one heavily reliant on its owner. However, these are just benchmarks. Your story, your team, and your growth potential matter just as much as the numbers on a spreadsheet.

The Pediatric PT Niche

In Louisiana, pediatric physical therapy is a true specialty. This scarcity can be a significant advantage. It means less direct competition and the potential for a more loyal patient base, which are attractive qualities for a potential buyer looking to enter or expand in this specific area.

Key Considerations

Your practice’s uniqueness is its greatest asset and its biggest variable. With just 3% of Louisiana’s physical therapists working in pediatrics, you operate in a specialized field. A buyer will want to understand the stability of that position. Is the practice’s success tied entirely to you, the owner? Or have you built an associate-driven model with systems that can continue without your daily presence? They will also look closely at your operational costs, especially payroll. With average pediatric PT salaries over $83,000, managing your staffing and profit margins, which typically range from 14-20% for PT clinics, is a key indicator of a well-run business. How you answer these questions through your financial story is critical.

Market Activity

You won’t find a public record of recent pediatric PT practice sales in Louisiana. These transactions are typically private and handled confidentially. This privacy means that connecting with the right buyer requires a deliberate and targeted process, not just a public listing. The good news is that there is significant interest in well-run healthcare practices. Here is who is often looking:

1. Strategic Health Systems: Larger regional hospitals or healthcare groups often seek to add specialized services like pediatric therapy to their continuum of care. They look for strong community reputations and referral networks.
2. Private Equity-Backed Groups: PE firms and their platform companies are actively consolidating the therapy space. They are looking for profitable, scalable practices that can serve as a cornerstone for regional growth.
3. Local Competitors or Expanding Practices: Other physical therapy owners in Louisiana may be looking to expand into the pediatric niche or grow their existing footprint. They value a turnkey operation with a trained staff.

Sale Process

Selling your practice is a journey with distinct phases. It begins long before a buyer is ever contacted. The first phase is preparation, where you organize your financials and strategic documents to tell a compelling story. Next comes a formal valuation to establish a credible asking price. Only then does the marketing phase begin, where we confidentially approach a curated list of qualified buyers. This leads to negotiation, where offers are structured and compared. The final phase is due diligence, a thorough review by the buyer, which culminates in the legal closing and a smooth transition of ownership. Each step builds on the last, and a disciplined approach is the key to protecting your value and your peace of mind.

Valuation

What is your practice truly worth? The answer lies in its cash flow, not just its revenue. Sophisticated buyers value a practice based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Think of it as the true annual profit the business generates. We calculate it by taking your reported net income and adding back expenses that won’t continue under a new owner. These include your personal salary above a market rate, one-time equipment purchases, or personal vehicle expenses run through the business. This reveals the real earning power a buyer is acquiring.

Here is a simplified example of how we uncover that value:

This Adjusted EBITDA is what determines your valuation multiple and, ultimately, your final sale price.

Post-Sale Considerations

The final signature on the sale agreement is not the end of the story. It is the beginning of a new chapter for you, your staff, and your patients. A successful transition is one where your legacy is protected. This involves finding a buyer whose values align with yours and structuring the deal to ensure continuity of care and job security for your dedicated team. It also requires planning your own next steps. Will you stay on for a transition period? How will you manage the proceeds from the sale to fund your retirement or next venture? Thinking through these elements early in the process ensures the transition is as rewarding as the career you built.