Selling the ABA therapy practice you have built is a major decision. For owners in Oklahoma, the current market presents a significant opportunity, but realizing your practice’s full value requires careful planning and a strategic approach. This guide provides insight into the process, from understanding the market to navigating the final steps of a sale, helping you prepare for a successful transition.
Curious about what your practice might be worth in today’s market?
The Oklahoma Market for ABA Practices
The national market for pediatric and behavioral health practices, including ABA therapy, is very active right now. We see this trend holding true in Oklahoma. Sophisticated buyers, from private equity groups to larger strategic healthcare systems, are looking to expand their footprint in the region. They are seeking established, well-run practices that provide high-quality care.
This demand creates a favorable environment for practice owners who are considering an exit. However, these buyers are also experienced negotiators. They come to the table with a clear checklist of what they want: proven profitability, a strong clinical reputation, and efficient operational systems. For a seller, this means that being “fine” is not enough. To achieve a premium valuation, your practice must be thoroughly prepared for the intense scrutiny of a sale process.
Key Considerations for Oklahoma ABA Owners
When you start thinking about a sale, several specific factors for an ABA practice in Oklahoma come to the forefront. Addressing these early on can make the difference between a smooth transaction and a difficult one.
Your Role After the Sale
Buyers often prefer that the founding owner stays involved for a transition period. This can be in a clinical leadership or a business development role. You need to decide what you want. Do you want to continue working, but without the administrative burden of ownership? Or are you looking for a clean break and a complete cash-out? Your answer will shape negotiations, especially around non-compete agreements, which can restrict your ability to work in the field within a certain area.
Ensuring Clinical Continuity
In ABA therapy, continuity of care is not just a best practice; it is an ethical necessity. A potential buyer will look very closely at your plan to ensure a seamless transition for clients and their families. This includes retaining key staff. With national therapist turnover rates in ABA being notoriously high, a practice that can demonstrate a stable, dedicated team holds a significant competitive advantage.
Navigating Oklahoma Regulations
Compliance is key. A buyer will perform due diligence on your practice’s adherence to all state-level requirements, including those set by the Oklahoma Licensed Behavior Analyst Board (OLBAB). Having all your licenses, permits, and documentation in perfect order is not negotiable. Any uncertainty in this area can create delays or even cause a buyer to walk away.
What Buyers Are Looking For Today
In today’s active market, buyers are not just acquiring a stream of revenue. They are investing in a platform for future growth. To attract the most serious buyers and the best offers, your practice needs to demonstrate a few key attributes. They are looking for a business that is not just profitable but also durable and scalable.
Think of it from their perspective. They are trying to answer one question: “Is this a well-oiled machine?” They look for quantifiable proof in your financial records, like consistent revenue growth and healthy profit margins. But they also look for qualitative strengths. This includes strong brand recognition in your local Oklahoma community, a documented history of positive clinical outcomes, and streamlined information systems for billing and records. A practice that can run smoothly without your moment-to-moment involvement is a much more valuable asset.
The Path to a Successful Sale
The process of selling a practice can feel overwhelming, but it follows a logical path. Understanding these stages demystifies the journey and shows where preparation is most important. Many sales encounter challenges during due diligence, a phase where an unprepared seller can face unexpected demands and questions.
Here is a simplified look at the typical sale process:
| Stage | What It Involves | Where Expert Guidance Helps |
|---|---|---|
| 1. Preparation & Valuation | Getting a professional valuation and organizing all financial, operational, and legal documents. | Accurately valuing the practice by normalizing EBITDA and framing a compelling growth story. |
| 2. Marketing | Confidentially marketing the practice to a curated list of qualified buyers. | Accessing a proprietary network of buyers to create competitive tension and maximize offers. |
| 3. Negotiation | Evaluating offers, negotiating key terms (price, structure, your future role), and signing a Letter of Intent (LOI). | Structuring a deal that optimizes your after-tax proceeds and aligns with your personal goals. |
| 4. Due Diligence | The buyer conducts an exhaustive 4-6 week investigation to verify all information about the practice. | Managing the flow of information and preparing you for the questions to prevent deal fatigue or failure. |
| 5. Closing | Finalizing legal documents, transferring assets, and receiving proceeds from the sale. | Coordinating with attorneys and accountants to ensure a smooth and accurate closing process. |
Your legacy and staff deserve protection during the transition to new ownership.
What Is Your Oklahoma ABA Practice Really Worth?
Many practice owners mistakenly believe their practice9s value is simply a multiple of its net income. In reality, sophisticated buyers use a more nuanced approach centered on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your financials by adding back owner-specific or one-time expenses, such as an above-market salary, personal vehicle leases, or other discretionary spending. This process often reveals a much higher profitability than what is shown on a standard profit and loss statement.
For example, a practice with a $500,000 net income might have a $700,000 Adjusted EBITDA after accounting for these add-backs. This adjusted figure is then multiplied by a specific number, or “multiple,” which varies based on factors like your practice’s size, its reliance on you as the owner, its payer mix, and its growth potential. A multi-provider practice in a growing part of Oklahoma will command a much higher multiple than a small, solo-led clinic. A professional valuation is the only way to determine your true market value.
Planning for Life After the Sale
The day you close the deal is a beginning, not an end. Thinking through your post-sale life is a critical part of the planning process that protects your financial future and personal legacy. You and your advisor should work to negotiate these points long before you reach the closing table.
Three key areas to plan for include:
- Defining Your Future Role. If you plan to stay on, what will you be doing? For how long? What are the performance expectations? Getting this in writing prevents future misunderstandings and ensures the role aligns with your goals.
- Understanding Your Non-Compete. A non-compete clause is standard. However, the terms are negotiable. You must be clear on the geographic radius and time duration so you have the freedom you desire after the transition period ends.
- Protecting Your Legacy and Staff. A successful transition ensures that the quality of care continues and that your team is secure. A buyer who values your staff and operational culture is often the best partner. Structuring the deal to protect your team can be a key part of negotiations.
Selling your practice is one of the most important financial decisions of your life. It pays to have a team of experts on your side who understand the nuances of the ABA market in Oklahoma.
Every practice sale has unique considerations that require personalized guidance.
Frequently Asked Questions
What factors influence the valuation of an ABA therapy practice in Oklahoma?
The valuation is influenced by Adjusted EBITDA (which normalizes financials by adding back owner-specific or one-time expenses), the size of the practice, reliance on the owner, payer mix, and growth potential. A professional valuation is necessary to determine the true market value.
What role do owners typically have after selling their ABA therapy practice in Oklahoma?
Buyers often prefer that the founding owner stays involved during a transition period in a clinical leadership or business development role. However, sellers need to decide if they want to continue working without ownership burdens or make a complete cash-out, which affects negotiations around non-compete agreements.
What are the key preparations needed before selling an ABA therapy practice in Oklahoma?
Key preparations include getting a professional valuation, organizing financial, operational, and legal documents, ensuring compliance with Oklahoma regulations (like those from the Oklahoma Licensed Behavior Analyst Board), and having a plan for clinical continuity and staff retention.
How important is clinical continuity and staff retention in the sale of an ABA therapy practice?
Clinical continuity is an ethical necessity in ABA therapy. Buyers look closely at plans to ensure seamless transitions for clients and their families, including retaining key staff. High therapist turnover rates make a stable and dedicated team a significant competitive advantage.
What does the due diligence phase involve when selling an ABA therapy practice in Oklahoma?
Due diligence is a 4-6 week investigation where the buyer verifies all information about the practice. Sellers must manage the flow of information carefully and be prepared to answer detailed questions to avoid deal fatigue or failure.