As an owner of an Occupational & Hand Therapy practice in Milwaukee, you are in a strong position. The market is experiencing significant growth, creating real opportunities for a successful sale. However, a premium valuation depends on strategic preparation and a deep understanding of the acquisition process. This guide provides insights to help you navigate your options and make informed decisions for your future. Whether you are curious about your practice’s value or planning your exit, understanding the landscape is your first step.
Market Overview
The timing for considering a sale of your Occupational & Hand Therapy practice could not be better. Nationally, the industry is projected to grow at an impressive 10.1% annually through 2032. This national trend signals a healthy, expanding market where well-run practices are in high demand by buyers looking to grow their footprint.
Locally, Milwaukee offers a uniquely stable environment. The city is home to over 760 occupational therapy specialists, supported by a consistent talent pipeline from programs at UW-Milwaukee, Concordia University, and MATC. For a potential buyer, this means access to a skilled workforce, reducing the risk associated with staffing and future growth. This combination of national demand and local stability makes Milwaukee a very attractive market for acquirers.
Key Considerations for a Milwaukee Practice Sale
When a buyer evaluates your Milwaukee practice, they look beyond your revenue. They are buying the future cash flow and the systems that produce it. Before you begin the process, it’s helpful to consider the story your practice tells.
- Your Referral Network. How dependent are you on a few key referral sources? A diversified and well-documented network of referrals from physicians, attorneys, and industrial clients is a major asset that demonstrates stability.
- Your Clinical Team. A practice that can operate without being 100% dependent on the owner is far more valuable. Highlighting the experience of your therapy team and their relationship with patients proves the practice has long-term viability.
- Your Financial Records. Buyers require clean, clear financial statements. If your books are messy or mix personal and business expenses, the due diligence process can become a major roadblock. Preparing organized financials is not just about compliance. It is about building trust with a buyer.
Market Activity
The therapy sector is seeing a wave of acquisitions from two main groups: larger, established therapy providers looking to expand in key markets like Milwaukee, and private equity firms who see the industry’s growth potential. This is good news for practice owners. This activity creates competition among buyers, which can lead to higher valuations and more favorable deal terms for you.
However, these buyers are sophisticated. They perform rigorous due diligence and know exactly what they are looking for. Selling to them without a structured, competitive process often means leaving money on the table. Running a process that brings multiple qualified buyers to the table at the same time is the best way to understand your practice’s true market value and secure the best outcome.
The Sale Process at a Glance
Selling your practice is a journey with distinct phases. While every sale is unique, most follow a structured path. Understanding these steps helps you prepare for what is ahead and avoid common pitfalls, especially during the critical due diligence stage where many deals encounter challenges.
| Stage | Key Objective | Where Expert Guidance Matters |
|---|---|---|
| 1. Preparation | Organizing financials and operational data. | Identifying value drivers and fixing issues before buyers see them. |
| 2. Valuation | Establishing a credible and defensible asking price. | Using market data to achieve a premium, not just average, valuation. |
| 3. Marketing | Confidentially connecting with qualified buyers. | Accessing a database of vetted buyers to create competition. |
| 4. Due Diligence | Buyer verifies all financial and operational claims. | Managing the flow of information to prevent deal fatigue or delays. |
| 5. Closing | Negotiating final terms and legal documents. | Structuring the deal to maximize your after-tax proceeds. |
Understanding Your Practice’s Value
Many practice owners mistakenly think their practice’s value is a simple multiple of annual revenue, like 0.7x. This approach can undervalue a profitable practice significantly. Sophisticated buyers and M&A advisors use a more precise metric: Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.
We start with your stated profit and then “adjust” it. We add back expenses that a new owner would not incur, like your personal car lease, excess owner salary, or a one-time equipment purchase. This process reveals the true cash flow of the business. This higher Adjusted EBITDA figure is then multiplied by a factor based on market conditions, growth potential, and practice stability. This is how we move from a simple estimate to a true, market-based valuation that reflects the hard work you have put in.
Post-Sale Considerations
The day you sign the closing documents is not the end of the journey. A successful transition requires planning for what comes next. The structure of your deal will have major implications for your future, your staff, and your financial security.
Your Role After the Sale
Will you retire immediately, or stay on for a transition period? Some deals involve an “earnout,” where part of your payment is tied to future practice performance. Others might include “rollover equity,” where you retain a minority stake. Your goals for the future should shape these negotiations from the very beginning.
Protecting Your Legacy and Staff
A key concern for many owners is the well-being of their dedicated staff and the continuity of care for their patients. The right buyer will value your team and culture. We help you find a partner whose vision aligns with yours, ensuring your legacy is protected.
Managing Your Proceeds
The structure of your sale has major tax implications. Planning ahead can make a significant difference in your net, after-tax proceeds. Working with advisors who understand tax-efficient sale structures is critical to maximizing the financial rewards of your life’s work.
Frequently Asked Questions
Why is now a good time to sell an Occupational & Hand Therapy practice in Milwaukee, WI?
The industry is projected to grow nationally at an impressive 10.1% annually through 2032, and Milwaukee offers a stable local market with a strong talent pipeline. This combination creates a high demand for well-run therapy practices, making it an opportune time to sell.
What are the key factors buyers consider when evaluating an Occupational & Hand Therapy practice in Milwaukee?
Buyers look beyond revenue; they focus on future cash flow and the systems that generate it. Important factors include a diversified referral network, the experience and independence of the clinical team, and clean, well-organized financial records.
How can I achieve a premium valuation for my Occupational & Hand Therapy practice?
Prepare strategically by organizing clean financials, diversifying your referral sources, and demonstrating that your practice can operate independently of your direct involvement. Additionally, understanding adjusted EBITDA and market conditions can help you set a credible and defensible asking price.
What does the sale process of an Occupational & Hand Therapy practice typically involve?
The sale process generally includes five stages: preparation (organizing data), valuation (setting the price), marketing (connecting with buyers), due diligence (buyer verification), and closing (finalizing terms). Expert guidance is crucial at each stage to avoid pitfalls and maximize sale value.
What should I consider for post-sale planning after selling my Occupational & Hand Therapy practice?
Post-sale planning includes deciding your role in the transition (retirement or stay on), protecting your staff and legacy by choosing a buyer aligned with your values, and managing your sale proceeds with tax-efficient structuring for maximum financial benefit.