Guide to Selling a Home-Based ABA Services Practice in Utah

The market for Utah home-based ABA practices is dynamic and presents a significant opportunity for owners considering a transition. Whether your goal is a strategic partnership or a full exit, understanding the landscape is the first step. This guide offers insights into the current market, key valuation drivers, and the sale process, helping you prepare for one of the most important decisions in your professional life. Proper preparation can change your outcome.

A Look at the Utah ABA Market

The market for ABA therapy practices is strong, and Utah is no exception. We are seeing significant interest from a range of buyers, from regional groups to national platforms looking to expand their footprint. Most independent ABA practices in the state report revenues under $5 million, which creates a competitive environment where well-run businesses stand out.

High Buyer Interest

Buyers are actively seeking to acquire practices in growing fields like ABA services. They are attracted to Utah’s demographic trends and the increasing demand for high-quality behavioral health services. This demand means that if you have built a solid practice, there are likely multiple potential partners interested in your business. The opportunity is real.

What Buyers Look For

Interested buyers are not just looking for revenue. They are looking for quality and stability. They want to see consistent profit margins, a history of revenue growth, and strong clinical outcomes. A recognized brand and reliable information systems are also major advantages that can set your practice apart from the competition.

First Steps: Key Considerations for Your Sale

Before you ever speak to a potential buyer, a few foundational steps are in order. First, you need to understand what your practice is worth. A formal business valuation does more than just give you a price range. It becomes the basis for your entire strategy. With this number, you and your tax advisor can calculate potential tax liabilities. You also need to consider the structure of the sale. Selling your assets is very different from selling the stock or membership interests of your company, and the choice has major tax consequences. These are not small details. They are decisions that can dramatically affect your final net proceeds.

What We’re Seeing in the Market

You might be curious about what other home-based ABA practices in Utah have sold for. This is a common question. The truth is that this information is almost always private. You cannot find it with a public search. It is held by M&A advisors who manage these confidential sales. However, we can share the key trends that are driving deals right now.

Here are three things shaping market activity today:

1. Buyers Pay for a Story. A practice with a clear growth narrative is more attractive. This could be expansion into a new part of Utah, adding new services, or showcasing strong clinical leadership that can be replicated. They don’t just buy your past financials. They buy your future potential.
2. Preparation Commands a Premium. Buyers are moving quickly. A seller who has their financial, operational, and legal documents organized sends a powerful signal. It says the business is well-managed and reduces the buyer’s perceived risk, which can lead to a higher offer.
3. Competition Creates Value. The highest valuations do not come from a single, unsolicited offer. They are the result of a confidential, competitive process where multiple qualified buyers are brought to the table. This is how you discover your practice’s true market value.

Navigating the Sale Process

Selling your practice is a journey with distinct phases. It begins with deep preparation, where you gather all your financial and operational information. Next, your advisor confidentially markets the practice to a curated list of qualified buyers. This leads to conversations, offers, and the negotiation of a Letter of Intent (LOI). Once an LOI is signed, the most intense phase begins: due diligence. For the next four to six weeks, the buyer and their team will conduct a deep investigation into every aspect of your business. This is where many deals encounter problems. Successfully navigating this stage requires meticulous organization. A smooth due diligence process leads to the final purchase agreement and the closing of the transaction.

Understanding Your Practice’s Value

How do buyers determine a price for your practice? It is not based on your revenue. It is based on your profitability, specifically a metric called Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. “Adjusted” is the key word. It means we add back owner-specific or one-time expenses to find the true cash flow of the business.

This Adjusted EBITDA is then multiplied by a “multiple.” The multiple reflects your practice’s quality, growth potential, and risk. A practice that depends entirely on its owner will have a lower multiple than one with a strong clinical team.

Here is a simple example of how adjustments impact value:

This adjusted number, not the reported profit, is the foundation of your practice’s valuation.

Life After the Sale: What to Expect

The transaction closing is not the end of the story. It is a new beginning. You need to decide on your post-sale role early in the process. Many buyers want the seller to stay involved for a transition period, helping with clinical oversight or regional growth. If you prefer a clean break, you must prepare for a non-compete agreement. This will likely restrict you from starting a similar business in Utah for a set number of years. Thinking about your personal and financial goals for life after the sale is just as important as the sale itself. Your decision will shape the entire deal structure.