Selling your Applied Behavior Analysis (ABA) practice is one of the most significant decisions of your career. In Maryland, current market conditions present a unique opportunity for owners who are prepared. Success is not just about finding a buyer. It is about understanding your practice’s true value, navigating a complex process, and structuring a deal that protects your financial future and your legacy. This guide provides a clear overview of the landscape for ABA practice owners in Maryland.
Curious about what your practice might be worth in today’s market?
Maryland’s ABA Market: An Overview
The demand for ABA therapy services in Maryland is strong and growing. This is not a temporary trend. It is a stable market shift driven by fundamental factors that new investors and larger providers find very attractive. For practice owners, this translates into a powerful seller’s market.
Growing Need for Services
Awareness and diagnosis rates for autism spectrum disorder continue to rise. At the same time, insurance mandates in Maryland ensure that these necessary services are covered. This creates a large, growing, and reliable patient base. Buyers see this as a sign of sustainable, long-term revenue. Your practice is not just a business. It is a vital community healthcare asset, and the market is pricing it accordingly.
Strong Buyer Interest
This high demand has attracted a range of sophisticated buyers. These are not just local competitors. They are well-funded private equity groups and large strategic health systems looking to establish or expand their footprint in Maryland’s thriving behavioral health sector. They are actively seeking well-run practices like yours.
Key Considerations for a Successful Sale
When buyers evaluate your ABA practice, they look deeper than the top-line revenue. They are buying an ongoing operation. Your practice’s value is directly tied to how well it runs and how easily it can be transitioned. They will look closely at your clinical reputation, the strength of your clinical team, and the diversity of your referral sources. A heavy reliance on a single referring physician or the owner being the sole BCBA can be seen as a risk. The most attractive practices are those that can operate smoothly even after the owner transitions out of their current role.
Understanding Current Market Activity
The market for ABA practices in Maryland is not just active. It is consolidating. Large buyers are acquiring smaller, high-quality practices to build regional platforms. This activity creates a competitive environment that can drive sale prices higher, but it also means the landscape is changing. Navigating this requires understanding who the buyers are and what they want. Each type of buyer has a different strategy, which should influence how you position your practice.
| Buyer Type | Primary Motivation | What They Value Most |
|---|---|---|
| Private Equity Group | Building a regional or national platform. | Scalable systems, strong EBITDA, management team. |
| Strategic Acquirer | Expanding geographic footprint or service lines. | Clinical reputation, patient base, staff integration. |
| Local Competitor | Gaining market share and key talent. | Referral sources, facility location. |
The Four Stages of the Sale Process
A successful practice sale follows a structured, confidential process. It is not a single event but a series of managed stages designed to protect your interests and maximize value. At SovDoc, we guide owners through every step.
- Preparation and Valuation. This is the foundation. We work with you to analyze your financials, normalize earnings, and prepare a comprehensive valuation that reflects your practice’s true worth.
- Confidential Marketing. We do not just “list” your practice. We develop a targeted list of qualified buyers from our proprietary database and approach them confidentially to gauge interest without disrupting your staff or patients.
- Negotiation and Due Diligence. We solicit offers and create a competitive environment. Once an offer is accepted, we manage the buyer’s due diligence process, a phase where many deals falter without expert management.
- Closing and Transition. We work with legal counsel to finalize the purchase agreement and ensure a smooth transition for you, your team, and your patients.
How Your ABA Practice is Valued
Your practice is worth much more than its equipment or the cash in its bank account. The valuation process looks at the health and profitability of your business as an ongoing concern.
Beyond the P&L: Adjusted EBITDA
The key metric buyers use is Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. We calculate this by taking your net income and adding back owner-specific expenses that a new owner would not incur, like an above-market salary, personal vehicle leases, or other non-operational costs. This reveals the true cash flow of the business.
The Art of the Multiple
This Adjusted EBITDA figure is then multiplied by a specific number, the “multiple.” This multiple is not arbitrary. It is influenced by several factors: the size of your practice, your payer mix, your reliance on key staff, and your growth trajectory. Practices with multiple BCBAs and a strong history of growth command higher multiples.
Putting It Together
A practice with $750,000 in Adjusted EBITDA and a multiple of 6x would have an enterprise value of $4.5 million. Our job is to build a case for the highest, most defensible multiple your practice can achieve.
Life After the Sale: Planning Your Transition
The final sale agreement is not the finish line. It is the beginning of your next chapter. Thinking about this early in the process is critical. You need a plan for your staff, your patients, and yourself. Many owners choose to stay on for a transition period, while some seek a partnership that allows them to retain a leadership role and equity rollover. This means you roll a portion of your sale proceeds into the new, larger company, giving you a second opportunity for a financial return when that company sells in the future. The structure of your sale has significant tax implications, and proper planning can protect more of your hard-earned proceeds. Protecting your legacy is about ensuring the practice you built continues to thrive.
Frequently Asked Questions
What makes Maryland a unique market for selling an ABA therapy practice?
Maryland’s ABA therapy market is strong and growing due to rising autism diagnosis rates and insurance mandates covering ABA services. This creates a stable, long-term demand and makes it an attractive market for buyers, including private equity groups and strategic health systems.
How is the value of my ABA practice determined in Maryland?
The value is primarily based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects the true cash flow of the business after adjusting for owner-specific expenses. This figure is then multiplied by a market-based multiple influenced by factors like practice size, payer mix, staff reliance, and growth history.
Who are the typical buyers interested in ABA practices in Maryland?
Buyers include private equity groups that want to build regional or national platforms, strategic acquirers expanding their geographic footprint or service lines, and local competitors seeking market share and key talent. Each buyer type values different aspects of a practice, such as scalable systems, clinical reputation, or referral sources.
What are the key stages involved in selling an ABA practice in Maryland?
The sale process includes four stages: 1) Preparation and Valuation, 2) Confidential Marketing to qualified buyers, 3) Negotiation and Due Diligence, and 4) Closing and Transition to ensure a smooth handover to new ownership while protecting the seller’s interests.
What should I consider about my life and the practice after selling my ABA therapy business?
Post-sale planning is crucial and includes considerations for your staff, patients, and personal transition. Some owners stay on during a transition period, while others retain leadership roles or engage in an equity rollover for potential future financial gains. Proper tax planning is also essential to protect your proceeds and preserve your legacy.