Selling your Occupational & Hand Therapy practice is one of the most significant financial decisions of your career. In a unique market like New Orleans, knowing how to position your practice is critical. This guide provides a clear overview of the current landscape, from valuation to post-sale life, helping you understand how to navigate the process and capture the full value of the business you have built.
Market Overview
If you have looked for specific data on selling an OT & Hand Therapy practice in New Orleans, you have probably noticed it is hard to find. Public listings are scarce. Comprehensive reports on local M&A activity in this niche do not really exist. This lack of public information creates a private market where opportunities are found through relationships and expertise, not listings. While the New Orleans-Metairie area shows steady demand for occupational therapists, the M&A market operates on a different level. It is driven by strategic buyers and private equity groups who are quietly looking for well-run practices to join their growing networks. This environment means that the right guidance is not just helpful. It is how you find the best opportunities.
3 Key Considerations for New Orleans OT Practice Owners
When preparing to sell, buyers look past the surface. They focus on specific factors that signal a healthy, transferable business. For your Occupational & Hand Therapy practice in New Orleans, the focus often comes down to these three areas.
1. Your Referral Networks and Payer Mix
Who sends you patients? Strong, diverse referral relationships with orthopedic surgeons, primary care physicians, and hospital systems are a major asset. A heavy reliance on a single source is a risk for buyers. Similarly, a healthy mix of commercial insurance, Medicare, and private pay is more attractive than a practice dependent on a single payer.
2. Provider Dependencies and Staff Credentials
If all patients want to see you, the owner, it makes the practice harder to sell. Buyers pay a premium for practices where revenue is generated by multiple therapists. A well-trained team with strong credentials, including Certified Hand Therapists (CHTs), demonstrates clinical excellence and makes the business far less dependent on any one person.
3. Your Financial Organization
Sophisticated buyers expect clean financials. This means more than just a profit and loss statement. They want to see key metrics like revenue per visit, provider productivity, and a clear, normalized EBITDA. Getting your books in order is a foundational step that builds buyer confidence.
Market Activity
The market for rehab therapy practices is active, but it happens behind the scenes. We are seeing a clear trend where larger healthcare platforms and private equity-backed groups are looking to acquire practices like yours. They are not just looking for a “tuck-in” to an existing clinic. They are often seeking to establish a new platform in a key region like Southern Louisiana. For you, this means the potential buyer pool is more sophisticated than ever. They are less interested in “fixer-uppers” and more interested in strong, profitable practices with growth potential. The window of opportunity for attracting these premium buyers shifts with market conditions. Being prepared allows you to act when the timing is right for you.
The Path to Selling Your Practice
A successful sale is not an event. It is a process. Many practice sales run into trouble during due diligence because of poor preparation. We believe in a structured approach that avoids surprises and keeps you in control.
| Phase | What It Means for You |
|---|---|
| 1. Preparation & Strategy | This is where we work with you to clean up financials, identify key value drivers, and frame the story of your practice. This phase often takes 60-90 days but is crucial for maximizing value. |
| 2. Valuation | We go beyond simple formulas to determine a defensible market value based on normalized EBITDA, market comparisons, and your practice9s unique strengths. |
| 3. Confidential Marketing | Your practice is never publicly listed. We run a confidential, competitive process, approaching a curated list of qualified strategic and financial buyers from our private database. |
| 4. Due Diligence | This is the buyer’s deep dive into your practice. Because we prepare everything in Phase 1, this stage becomes a verification exercise, not a stressful discovery of problems. |
| 5. Closing | We guide you through the final negotiations and legal documentation to ensure a smooth transition that protects your financial interests and your legacy. |
What Is Your Practice Really Worth?
Valuation is more than a formula. It is about understanding your practice9s true cash flow and a buyer9s perception of its future potential. At SovDoc, we start with Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Think of this as your real profitability after we add back personal expenses run through the business or adjust an owner’s salary to market rates. This number is then multiplied by a valuation multiple. For OT practices, this multiple can range from 3.0x to over 7.0x. The final number depends heavily on factors like your practice9s size, provider team, and growth trajectory. Relying on an industry “rule of thumb” is one of the most common ways owners leave money on the table.
Planning for Life After the Sale
The day you close the deal is not the end of the story. It is the beginning of your next chapter, and planning for it is a part of the sale process itself. How you structure the deal has major implications for your future.
Your Role After the Sale
Do you want to leave immediately or stay on for a few years? Many buyers want the seller to remain involved during a transition period. We help negotiate terms that align with your personal and professional goals, whether that means securing an employment agreement or defining a clear exit path.
Protecting Your Team and Legacy
You built your practice and you care about your staff and patients. A good sale process involves finding a buyer who shares your values and will protect your team. This is a key part of our focus when finding the right partner for you.
The Financial Picture
The final sale price is not what you put in the bank. The structure of the deal impacts your after-tax proceeds. We help model different scenarios, including deals that involve rollover equity. This allows you to retain a minority stake in the new, larger company, giving you a potential “second bite at the apple” when that company is sold again years later.
Frequently Asked Questions
What makes the New Orleans market unique for selling an Occupational & Hand Therapy practice?
The New Orleans market is private and relationship-driven with scarce public listings and limited comprehensive M&A reports. Buyers in this market are often strategic buyers and private equity groups looking for well-run practices to join their networks, making expert guidance essential for finding the best opportunities.
What are the three key considerations buyers focus on when evaluating an OT & Hand Therapy practice in New Orleans?
Buyers focus on: 1) Referral networks and payer mix — diverse and strong referral sources plus a healthy mix of commercial insurance, Medicare, and private pay. 2) Provider dependencies and staff credentials — multiple therapists generating revenue and clinical excellence demonstrated by credentials like Certified Hand Therapists (CHTs). 3) Financial organization — clean and sophisticated financials with clear metrics like revenue per visit and normalized EBITDA.
How is the valuation of an Occupational & Hand Therapy practice in New Orleans determined?
Valuation is based on Adjusted EBITDA (real profitability after adjusting personal expenses and owner’s salary) multiplied by a valuation multiple, typically ranging from 3.0x to over 7.0x. The final valuation depends on practice size, provider team, growth potential, and other unique strengths, not just standard rule-of-thumb formulas.
What should practice owners in New Orleans expect during the sales process?
Owners should expect a structured process with several phases: Preparation & Strategy (cleaning up financials and framing the practice story), Valuation, Confidential Marketing (approaching qualified buyers privately), Due Diligence (verification and transparency), and Closing (final negotiations and legal documentation). Preparation is crucial to avoid issues during due diligence.
What happens after selling an Occupational & Hand Therapy practice, and how should owners plan for life after the sale?
Planning for life after the sale involves deciding whether to stay involved during transition or leave immediately, negotiating terms accordingly, and protecting staff and legacy by finding buyers who share your values. Deal structure affects after-tax proceeds, with options like rollover equity allowing owners to retain minority stakes and benefit from potential future sales.
