Guide to Selling a Occupational & Hand Therapy Practice in Columbus, OH

Selling your Occupational and Hand Therapy practice is one of the most significant financial and personal decisions you will make. In a growing market like Columbus, the opportunity for a successful exit is strong, but navigating the process requires strategic preparation. This guide offers insight into the current market, the selling process, and how to position your practice to attract the right buyers and achieve your goals.

Market Overview: A Seller’s Climate in Central Ohio

The outlook for therapy practices is exceptionally bright, and this positive trend creates a favorable environment for practice owners in the Columbus area. Understanding these dynamics is the first step toward a well-timed and profitable sale.

A Growing Demand for Therapy

Nationally, the market for Occupational and Physical Therapy services is projected to grow at a rate of 10.1% annually through 2032. This isn’t just a number on a chart. It reflects an aging population, a greater focus on workplace ergonomics, and an increased awareness of the benefits of specialized hand therapy. This broad demand puts well-run, reputable practices in a strong position.

What This Means for Columbus Owners

While national trends are encouraging, the local market is what matters most. Ohio is experiencing its own growth in therapy-related fields, and Columbus, as a major healthcare and economic hub, is at the center of this activity. For you, this means there is a healthy pool of potential buyers, from expanding local groups to larger regional and national organizations looking to enter or strengthen their presence in a stable, growing metropolitan area. The key is knowing how to make your practice stand out within this active market.

Three Key Considerations Before You Sell

A strong market provides opportunity, but a successful sale depends on careful planning. Before you take any concrete steps, it’s wise to think through a few critical areas where we see many owners need guidance.

1. Confidentiality is a Priority. The moment word gets out that your practice might be for sale, it can create uncertainty among your staff and referral sources. A properly managed sale process operates under strict confidentiality, ensuring that conversations happen with only serious, vetted buyers until a deal is ready to be announced on your terms.

2. Define Your Ideal Buyer. The right buyer is about more than the highest price. Do you want to sell to a larger system, a private equity group, or another therapist who will carry on your legacy? Each path has different implications for your finances, your staff, and your own future role, if any. Defining your goals upfront helps identify the right type of partner.

3. Focus on “Sellability” Now. Buyers pay for proven success, not just potential. We often advise owners that the best time to start preparing for a sale is two to three years before you plan to exit. This gives you time to clean up financials, document procedures, and optimize operations to make your practice as attractive as possible.

Understanding the Current Market Activity

The therapy sector is experiencing significant consolidation. This means that established practices, especially those with a strong reputation and consistent patient flow in a desirable location like Columbus, are in high demand.

Who is Buying Practices?

The buyers in today’s market are more diverse than ever. They typically include:
* Strategic Acquirers: Larger therapy groups, both regional and national, looking to expand their footprint in Central Ohio.
* Hospital Systems: Health networks seeking to integrate specialized therapy services into their continuum of care.
* Private Equity-Backed Platforms: Investment groups that acquire practices as a “platform” for future growth, often providing significant back-office resources while preserving clinical autonomy.

Creating a Competitive Environment

An active market with multiple buyer types is a major advantage for sellers. It allows you to create a competitive process where multiple parties are interested in your practice. We don’t just “list” your practice. We confidentially present the opportunity to a curated database of qualified buyers. This competition is what drives premium valuations and gives you the leverage to negotiate terms that protect your legacy and your team.

The Four Stages of the Sale Process

Selling a practice is a structured process, not a single event. While every sale is unique, it generally follows a clear path. Understanding these stages demystifies the journey and highlights where expert guidance can prevent common pitfalls, especially during the due diligence phase where many deals encounter challenges.

How Your Practice is Valued

Many owners we speak with believe their practice isn’t worth enough to sell, or they rely on simple rules of thumb. The reality is that valuation is a sophisticated process, and most practices are worth more than their owners think once the numbers are properly framed.

It Starts with Adjusted EBITDA

Buyers don’t value your practice based on the net income on your tax return. They use a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We start with your reported profit and “normalize” it by adding back expenses that a new owner would not incur. This includes things like your personal car lease, discretionary travel, or an above-market owner’s salary. For example, a practice with a $400,000 net income might have a $550,000 Adjusted EBITDA after these adjustments, immediately increasing its baseline value.

Applying the Right Multiple

Once we have the Adjusted EBITDA, we apply a valuation multiple to determine the Enterprise Value. This multiple isn’t a fixed number. it is influenced by several factors:
* Size & Scale: Practices with over $1M in EBITDA often command higher multiples.
* Provider Mix: A practice driven by multiple therapists is less risky and more valuable than a solo-owner-dependent practice.
* Growth & Reputation: A history of consistent growth and a strong brand in the Columbus community warrants a premium.
* Payer Mix: A healthy balance of insurance and private pay is often seen as ideal.

A sophisticated valuation tells the story of your practice in a language that buyers understand and respect.

Planning for What Comes Next: Post-Sale Considerations

The day you close the sale is not the end of the journey. A successful transition is defined by what happens afterward for you, your finances, and your team. Thinking about these elements early in the process is critical.

1. Protecting Your Team and Legacy. For most owners, ensuring their loyal staff is taken care of is a top priority. The structure of the sale and the choice of a partner are key to protecting your practice’s culture and the people who helped you build it. This is a central part of our negotiation strategy.
2. Structuring Your Financial Future. The sale structure has major implications for your after-tax proceeds. Decisions around an asset vs. entity sale, or whether to accept an earnout (future payments based on performance) or rollover equity (retaining a minority stake), can significantly impact your net financial outcome. These decisions require careful modeling and planning.
3. Defining Your Role After Closing. Do you want to retire immediately, or would you prefer to stay on for a few years in a clinical role with fewer administrative headaches? A successful deal aligns the transition plan with your personal and professional goals, providing you with a clear path forward.