Selling your Occupational and Hand Therapy practice in Oregon is a significant decision. The market is active, but navigating it successfully requires more than just a “For Sale” sign. This guide gives you a clear overview of the current landscape, from valuation to new state regulations. Proper preparation is the key to maximizing your practice’s value, whether you plan to sell this year or in the next three. You’ve built something valuable. Now, let’s explore how to realize its full potential.
Market Overview
Your practice operates within a large and dynamic sector. The national market for outpatient physical, occupational, and speech therapy is a $53 billion industry, and Oregon plays an important role. Understanding this context helps you position your practice for a successful sale.
A Vibrant Industry
The demand for therapy services remains strong. This creates a healthy environment for practice owners considering a transition. Buyers, from larger groups to individual therapists, are often looking for well-run practices with a solid patient base and strong community ties.
The Oregon Landscape
With over 1,200 Occupational Therapists and 300 assistants across the state, Oregon has a robust professional network. However, the distribution of these providers varies significantly by county. This creates unique opportunities and challenges depending on your specific location. An attractive practice in a high-need area can be a very valuable asset.
Key Considerations
Selling a practice in Oregon today involves more than finding a buyer. You must navigate a changing regulatory landscape. Recently, the state has increased its oversight of healthcare transactions, which directly impacts how you can sell your practice.
Oregon’s new Corporate Practice of Medicine (CPOM) laws, for example, are quite strict. They place new restrictions on non-therapist ownership and control over clinical matters. This legislation changes the landscape of potential buyers and requires careful deal structuring to ensure compliance. It’s a significant factor in any sale strategy.
Beyond regulations, your financial story must be clear. Buyers will analyze your Adjusted EBITDA and Seller’s Discretionary Earnings (SDE). Having these figures professionally prepared and well-documented before you go to market is not just a good idea. It’s how you defend your asking price.
Market Activity
The market for therapy practices in Oregon is active, but the players are shifting. While specific sale prices for OT practices are confidential, we see similar physical therapy practices listed for anywhere from under $100,000 to over $600,000. The final price depends on profitability, location, and specialty. Here’s what we are seeing in the market right now.
- A Shift in Buyers. Due to new state laws, the traditional private equity buyer is less common in Oregon. The most likely buyers are now other therapy groups looking to expand their footprint or individual therapists ready to become owners.
- Specialization is a Premium. Practices with strong niches, like Certified Hand Therapy, command higher interest and valuation. Buyers pay for proven expertise.
- Preparation Pays Off. The most successful sales are from owners who began preparing years in advance. Buyers do not pay for potential. They pay for a proven track record.
The Sale Process
Selling your practice follows a structured path, and understanding it can reduce stress. The journey begins long before a buyer is involved. It starts with a comprehensive valuation to understand what your practice is truly worth. From there, we help you prepare a confidential marketing package that tells your practice’s story, highlighting its strengths. We then identify and discreetly approach a curated list of qualified buyers.
Once interest is confirmed, the stages of negotiation and drafting a letter of intent begin. The most critical phase is often due diligence, where the buyer inspects every aspect of your business, from financials to compliance. This is where many deals face turbulence. With proper preparation, you can anticipate requests and move smoothly toward a successful closing, ensuring a seamless transition for you, your staff, and your patients.
Valuation: What Is Your Practice Worth?
Determining your practice s value is not a simple calculation. While some use generic formulas, a true valuation considers your practice s unique story and position in the Oregon market. The most credible method starts with your Adjusted EBITDA. This is your practice’s profit after normalizing for owner-specific expenses and one-time costs. That number is then multiplied by a figure that reflects your practice’s quality and risk. For smaller therapy practices, this multiple is often between 3x and 6x.
However, the multiple is not fixed. It changes based on several key factors. Buyers look deeper than just a single number.
| Factor | Lower Value | Higher Value |
|---|---|---|
| Provider Model | 100% owner-dependent | Associate-driven, multiple therapists |
| Referral Sources | Relies on 1-2 key sources | Diverse, stable referral network |
| Location | High competition, low demand | Strong community need, visible |
| Financials | Messy records, low margin | Clean books, strong profitability |
A professional valuation tells the story behind these numbers, ensuring you don’t leave money on the table.
Post-Sale Considerations
The day you sign the closing documents is not the end of the journey. It’s the beginning of a new chapter that should be planned for during the sale negotiations. What will your role be after the sale? Will you stay on for a transitional period? Will part of your payout be tied to the practice s future performance through an earnout? These are critical questions.
The structure of your sale has major financial implications. How the deal is structured can dramatically affect your after-tax proceeds. Planning for this early is essential. Just as important is ensuring a smooth transition for the dedicated team you built and the patients who rely on your practice. Protecting your legacy is a key part of a successful exit strategy. It ensures the business you created continues to thrive.
Frequently Asked Questions
What is the current market outlook for selling an Occupational & Hand Therapy practice in Oregon?
The market for Occupational & Hand Therapy practices in Oregon is active with strong demand for therapy services. Buyers are often other therapy groups or individual therapists looking to expand their ownership. Specialization like Certified Hand Therapy tends to command higher interest and valuation.
How do new Oregon state laws affect the sale of therapy practices?
Oregon’s new Corporate Practice of Medicine (CPOM) laws place restrictions on non-therapist ownership and clinical control, limiting potential buyers primarily to licensed therapists or therapy groups. This requires careful deal structuring to ensure compliance and affects sale strategy and buyer types.
What financial metrics are important when preparing to sell a therapy practice?
Buyers focus on metrics like Adjusted EBITDA and Seller’s Discretionary Earnings (SDE). A professionally prepared and well-documented financial story defending your asking price is crucial. Clean financial records and strong profitability significantly increase your practice’s valuation.
What factors influence the valuation of an Occupational & Hand Therapy practice in Oregon?
Key valuation factors include provider model (owner-dependent vs. associate-driven), referral source diversity, location and community need, and financial cleanliness and margin strength. Valuations typically use a multiple of Adjusted EBITDA, often between 3x and 6x, adjusted for the practice’s quality and risk.
What are important post-sale considerations for sellers?
Sellers should plan their role after the sale, such as transitional involvement or earnout arrangements tied to the practice’s future performance. The structure of the sale has significant financial and tax implications, and ensuring a smooth transition benefits staff, patients, and protects the legacy of the practice.
