Guide to Selling an ABA Therapy Practice in Texas

The market for ABA therapy in Texas presents a unique window of opportunity for practice owners. High demand for services and active consolidation by larger groups have created a favorable seller’s market. This guide provides a clear overview of current market conditions, key valuation drivers, and the strategic steps involved in a successful sale. Understanding these dynamics is the first step toward realizing the full value of the practice you have built.

A Look at the Texas ABA Market

The current climate for selling an ABA therapy practice in Texas is strong. It is driven by two key factors that create significant opportunities for practice owners like you.

A Fragmented Landscape

The Texas market is not dominated by a few large companies. The top 10 providers only account for about 10-15% of the market. This fragmentation is very attractive to private equity groups and larger strategic buyers. They are actively looking to acquire well-run practices to build their regional footprint. Your practice could be a perfect fit for a buyer looking to enter or expand in a key Texas metro.

High-Growth Demand

Demand for ABA services in Texas is surging. The state accounts for 10% of the national demand for ABA therapists. With projected job growth for BCBAs hitting 22% by 2028, the need for quality care centers is outpacing supply. This imbalance puts well-established practices with strong clinical teams in a powerful negotiating position.

What to Consider Before You Sell

Selling your practice is more than a financial transaction. It is a major professional and personal decision. Buyers are looking for practices with solid profit margins, revenue growth, and strong clinical structures. But they are also buying into your leadership and legacy.

You will need to decide on your role after the sale. Many buyers prefer the owner to stay on for a transition period to ensure continuity. This can be a great way to secure the practices future, but it requires a well-structured agreement. If you prefer a full exit, you need a plan that accounts for non-compete clauses. You also must ensure your practice is fully compliant with TDLR licensing. Navigating these decisions early on is key to a smooth process.

The Proof Is in the Transactions

The theoretical opportunity in Texas is matched by real-world activity. The market is dynamic, with both large and mid-sized practices being acquired by strategic buyers and private equity firms looking to build platforms. This trend demonstrates a healthy, active M&A landscape.

Here are a few examples that show the consolidation trend in Texas:

1. Statewide Expansion: In a recent move, ABA Connect acquired ABA Therapy of Houston, expanding its Texas footprint to 12 facilities. This highlights the goal of many PE-backed groups to build significant regional density.
2. Strategic Acquisitions: The sale of Magnolia Behavior Therapy to Regency ABA shows continued M&A activity within the state, as established brands seek to grow through acquisition.
3. Platform Growth: Apara Autism Centers’ acquisition of Behavior Pioneers is another example of a larger entity bringing a strong local practice into its network to enhance its service offerings.

These are not isolated events. They are part of a larger trend you can benefit from.

Understanding the Path to a Sale

A successful practice sale follows a structured path. It begins long before the practice is listed. The first phase is preparation. This involves gathering and organizing years of financial, operational, and legal documents. It is also the stage where we help you frame the story of your practices growth and potential.

Once prepared, your practice is confidentially marketed to a curated list of qualified buyers. After initial offers are received, we move to negotiation to secure the best terms. The most intensive phase is due diligence. Here, the buyer conducts a deep investigation into every aspect of your business, a process that can take four to six weeks. A well-prepared practice can move through this stage smoothly. A poorly prepared one often sees the deal value lowered or the entire transaction fail. The final stage is the closing, where legal documents are signed and the transition begins.

How Your ABA Practice is Valued

Your practice’s value is not just a guess. It is a calculation based on its true profitability. The key metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This is not just the profit on your tax return. It is a normalized figure that adds back owner-specific expenses to show the practice’s real cash flow available to a new owner.

For example, we uncover value that owners often overlook:

This Adjusted EBITDA is then multiplied by a market-based number. For smaller ABA practices, this multiple might be around 6x. For larger, well-structured practices, it can go much higher. This is why a professional valuation is so important. It uncovers the true earning power of your business and sets the foundation for a successful negotiation.

Planning for Life After the Sale

The day you close the deal is not the end of the story. It is the beginning of a new chapter that should be planned with care. Your role, if any, during the transition period is a critical part of the negotiation. A structured plan ensures a smooth handover that protects your staff and the clinical quality your patients depend on.

You also need to understand the structure of the sale itself. An asset sale versus a stock sale can have very different tax consequences. The final cash you receive will be your net proceeds after taxes and fees are paid. Thinking about this from the very beginning helps you and your advisory team structure the best possible deal for your specific financial goals. A successful exit is not just about the final price. It is about a smart transition that secures your financial future and protects the legacy you have built.