If you own an Occupational or Hand Therapy practice in Raleigh, you know the market is active. But reliable data on practice sales is hard to find. This guide offers a clear view of the current landscape, what drives value in your specialty, and why strategic preparation is the key to a successful exit. We will walk you through the factors that matter most to sophisticated buyers today, helping you understand the path toward a premium valuation.
Raleigh Market Overview: A Climate of Opportunity
The Raleigh-Durham area presents a unique and favorable environment for specialized therapy practices. The combination of a booming population, a world-class healthcare ecosystem in the Research Triangle, and an active community creates strong, sustained demand for your services. However, the market itself is changing.
A Growing, Demanding Patient Base
Raleighs growth attracts young families and professionals, while its high quality of life makes it a popular retirement destination. This diverse demographic fuels patient volume from pediatric occupational therapy to post-surgical hand therapy for an aging population. This built-in demand makes your practice fundamentally attractive.
The Rise of Strategic Buyers
The therapy sector is undergoing significant consolidation. Larger regional practices and private equity-backed platforms are actively seeking to expand their footprint in thriving markets like Raleigh. These groups are sophisticated. They are looking for well-run practices that can serve as a foundation for further growth. Their interest is creating a competitive environment for sellers who are properly prepared.
Key Considerations for Raleigh Practice Owners
Beyond the market forces, the value of your practice is tied to its specific operational strengths. Before you even think about a sale, you should assess a few critical areas. How diversified are your referral sources, or are you heavily reliant on a handful of orthopedic surgeons? A broad base of referrers is a sign of a healthy, low-risk business. Similarly, a strong team of therapists who can operate independently of you is a major asset. Buyers are not just acquiring your patient list. They are investing in your team and your operational stability. Protecting your clinical legacy and ensuring your staff are cared for are goals that can and should be built into the transaction from the start.
What Market Activity Looks Like Today
The biggest challenge for practice owners is the lack of public information. You cannot look up what a hand therapy practice in Raleigh recently sold for. This information gap benefits buyers. We see strong, consistent interest from a variety of groups, each with different motivations. Finding the right fit is crucial.
The main buyers in the market now are:
1. Private Equity Platforms: These groups want to partner with strong practices to build a larger organization. They often bring significant business resources and offer owners a chance to retain equity.
2. Hospital Systems: Local and regional health systems look to acquire therapy practices to create a seamless patient experience from surgery to rehabilitation.
3. Established Regional Practices: Successful local therapy groups often grow by acquiring smaller practices, seeking to expand their geographic reach and talent pool.
A competitive process ensures you are not just taking the first offer, but are finding the best partner for your financial and personal goals.
Understanding the Sale Process
Selling a practice is a journey, not a single event. It begins long before you ever speak to a buyer. The most successful owners we work with start preparing one to two years ahead of their target sale date. Why? Because buyers pay for proven performance, not potential. The process moves from preparing your financials and strategic narrative to confidentially marketing your practice to a vetted list of qualified buyers. This creates competitive tension. After negotiating terms, you enter the due diligence phase. This is an intense review of your financials, contracts, and operations. Many deals fail here due to poor preparation. A well-managed process anticipates these hurdles and ensures a smooth closing.
How Your Practice is Actually Valued
Most owners mistakenly think their practice’s value is a simple multiple of revenue. Sophisticated buyers, however, look at Adjusted EBITDAyour true cash flow after adding back owner-specific and one-time expenses. That number is then multiplied by a market multiple. The multiple is not fixed. It is heavily influenced by risk and growth potential. A practice that depends entirely on the owner is riskier and gets a lower multiple than a practice with a team of therapists driving revenue.
Look at how two practices with the same profit can have vastly different values.
| Factor | Practice A (Owner-Reliant) | Practice B (Associate-Driven) |
|---|---|---|
| Adjusted EBITDA | $250,000 | $250,000 |
| Key Risk | High owner dependence | Diversified provider base |
| Market Multiple | ~4.0x | ~5.5x |
| Estimated Value | $1,000,000 | $1,375,000 |
This is why preparation is so important. Improving your operations can directly increase your valuation multiple and final sale price.
Planning for Life After the Sale
The final sale price is not the same as your take-home proceeds. How a deal is structured has massive tax implications. Beyond the financials, you need a plan for your own future. Do you want to stop working immediately, or stay on for a few years? Many partnerships now involve “rolling over” a portion of your equity into the new, larger company. This allows you to take cash off the table now while participating in the future growth of the platform, giving you a potential second, often larger, payday down the road. This approach can align your financial success with the continued success of the practice you built. A good exit plan considers your wealth, your legacy, and your timeline.
Frequently Asked Questions
What makes Raleigh, NC a good market to sell an Occupational & Hand Therapy practice?
Raleigh has a booming population, a high-quality healthcare ecosystem in the Research Triangle, and a diverse patient base that fuels strong demand for occupational and hand therapy services. This combination creates a favorable environment for practice sales.
Who are the main buyers interested in Occupational & Hand Therapy practices in Raleigh?
The main buyers are Private Equity Platforms seeking to build larger organizations, Hospital Systems aiming to integrate therapy with surgical services, and Established Regional Practices looking to expand their geographic reach and talent pool.
How does the valuation of a therapy practice typically work in Raleigh?
Valuation is based on Adjusted EBITDA (true cash flow after adjustments) multiplied by a market multiple. The multiple varies depending on risks and growth potential, with practices having diversified teams generally achieving higher multiples.
Why is early preparation important before selling a therapy practice?
Sellers who prepare one to two years ahead can improve operations, demonstrate proven performance, and prepare for buyer due diligence. This strategic preparation helps achieve premium valuations and smooth sales processes.
What should sellers consider for life after selling their Occupational & Hand Therapy practice?
Sellers need to consider deal structure and tax implications, whether they want to stop working immediately or stay involved, and options like equity rollover to participate in future growth. An exit plan should align with financial goals and personal timelines.