You are in a strong position. The demand for occupational and physical therapy services is not just stable; it’s rapidly expanding. This growth creates a favorable climate for practice owners considering a sale.
National Demand is Surging
Nationally, the market is projected to grow at an impressive rate of over 10% annually through 2032. This isn’t just a number. It reflects an increasing awareness of the value of therapy, an aging population, and expanded access to care. This national tailwind makes well-run therapy practices highly attractive to buyers, from private equity groups to strategic health systems looking to expand their footprint.
Charlotte’s Local Appeal
In Charlotte, these national trends are amplified by the city’s own growth and robust healthcare ecosystem. While specific sales data for OT practices can be private, we see significant M&A activity in the broader therapy space. Larger groups are actively acquiring practices, which signals a healthy appetite for well-established local clinics. For a practice owner, this means there is likely a pool of qualified buyers looking for exactly what you have built.
Key Considerations for Selling Your Practice
Buyers look at your financials, but they buy your practice’s story and its future potential. The financial statements show where you have been. The operational strengths of your practice show where a new owner can go. Before you even think about an asking price, you should take stock of these critical assets.
Here are four pillars of value that buyers scrutinize:
1. Your Patient Base and Reputation. A loyal patient base and positive online reviews are invaluable. This is proof of concept. It shows a buyer they are acquiring a respected community asset, not just equipment and a lease.
2. Your Clinical Team. A stable, experienced team of therapists and support staff is a massive selling point. It reduces the buyer’s risk and ensures a smooth transition for patients. Highlighting your team’s expertise, especially in any niche services like pediatrics or hand therapy, can set you apart.
3. Your Referral Network. Where do your patients come from? Strong, documented relationships with referring physicians and healthcare systems are a powerful, defensible asset. This demonstrates built-in, sustainable demand.
4. Your Operational Systems. Efficient scheduling, billing, and documentation processes show that your practice is a well-oiled machine. This gives a buyer confidence that the practice can run smoothly and profitably from day one.
Understanding Market Activity in the Carolinas
It is rare to see a public announcement for the sale of a single occupational therapy clinic. Most transactions happen confidentially. However, by looking at the broader trends in the therapy space, especially in and around North Carolina, we can get a clear picture of the market.
The Rise of Strategic Partnerships
We are seeing a significant trend of larger, well-capitalized therapy groups and health systems acquiring successful local practices. A notable example was when PT Solutions acquired the physical and occupational therapy arm of OrthoCarolina. These buyers are not just looking for a single clinic. They are looking for strategic locations, talented staff, and strong community reputations to build out their regional networks.
What This Means For You
This trend is a strong positive signal. It means there is a class of sophisticated buyers actively looking for practices just like yours in the Charlotte market. They are willing to pay a premium for a practice that is well-run and can be easily integrated into their larger platform. The key is to position your practice to attract these high-value buyers and to run a process that creates competitive tension among them.
A comprehensive valuation is the foundation of a successful practice transition strategy.
The Path to a Successful Sale
Many practice owners believe selling is a single event, but it is a structured process. Preparing for the journey is the most important step you can take. Buyers pay for proven performance, not last-minute potential. Starting the preparation now, even if you plan to sell in a few years, ensures you sell from a position of strength. The process generally follows four key phases.
| Sale Phase | What It Involves | Where Expert Guidance Helps |
|---|---|---|
| Phase 1: Preparation | Gathering financial records, organizing operational data, and identifying key value drivers. | Creating a professional narrative and financial model that maximizes perceived value. |
| Phase 2: Marketing | Confidentially identifying and approaching a curated list of qualified buyers. | Accessing a proprietary database of strategic and financial buyers to create competition. |
| Phase 3: Diligence | The buyer thoroughly inspects your financials, operations, and legal standing. | Preparing you for the deep scrutiny of due diligence to avoid surprises that can derail a deal. |
| Phase 4: Closing | Negotiating the final purchase agreement and planning the transition. | Structuring the deal to optimize your after-tax proceeds and protect your legacy. |
How Your OT Practice is Valued
One of the first questions every owner asks is,
What is my practice worth?
The answer is more complex than a simple rule of thumb. Sophisticated buyers don’t value you on revenue. They value you on profitability and future cash flow.
It Starts with Adjusted EBITDA
The single most important metric is Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Think of it as your practice’s true operating profit. We start with your stated net income and then “normalize” it by adding back expenses that a new owner would not incur. This includes things like your personal auto lease, discretionary travel, or an above-market salary you pay yourself. Many owners are surprised to learn their practice is significantly more profitable than they thought once these adjustments are made.
The Multiple is About More Than a Number
That Adjusted EBITDA is then multiplied by a number–the “multiple”–to arrive at your practice’s enterprise value. While practices with over $1M in EBITDA can see multiples in the 5.5x to 7.5x range, that number is not fixed. It is a reflection of risk and opportunity. A practice that relies entirely on the owner will get a lower multiple than one with a diverse team of therapists. A practice with strong growth and a clean billing history will command a higher multiple than one with flat revenue. Our job is to tell your story in a way that justifies the highest possible multiple.
Physicians who understand EBITDA optimization typically achieve 25-40% higher valuations.
Planning for Life After the Sale
The transaction is not the end of the story. The best deals are structured with your post-sale life in mind from the very beginning. A successful transition requires a plan that goes beyond the financial. It should protect your legacy, your team, and your peace of mind.
Here are a few things to consider for your post-sale plan:
1. Your Role in the Transition. Will you stay on for a period to ensure a smooth handover? For how long and in what capacity? Defining this early manages expectations for both you and the buyer.
2. The Future of Your Staff. Your team is one of your greatest assets. A key part of negotiation is securing a future for your valued employees with the new owner, ensuring their roles and benefits are protected.
3. The Structure of Your Payout. The way your deal is structured has massive tax implications. A portion of the sale price could be in the form of an “earnout” or “rollover equity,” which gives you a second opportunity for a payout down the line. Planning this correctly can significantly increase your net proceeds.
4. Preserving Your Legacy. You built your practice to serve the Charlotte community. The right buyer will not only appreciate that legacy but will be a committed steward of the reputation you built. Finding that cultural fit is as important as finding the right price.
Your legacy and staff deserve protection during the transition to new ownership.
Frequently Asked Questions
Why is selling an occupational therapy practice in Charlotte, NC a good opportunity right now?
The demand for occupational therapy services is rapidly expanding both nationally and locally. Nationally, the market is growing at over 10% annually through 2032, driven by factors like an aging population and increased access to care. In Charlotte, strong local growth and a robust healthcare ecosystem further increase demand, attracting many qualified buyers looking to acquire well-run practices.
What are the key factors buyers look for when purchasing an occupational therapy practice?
Buyers look beyond financials to the practice’s story and future potential. Four pillars of value they scrutinize are: 1) A loyal patient base and positive reputation, 2) A stable and experienced clinical team, especially with niche expertise, 3) A strong, documented referral network, and 4) Efficient operational systems including scheduling, billing, and documentation.
How is an occupational therapy practice in Charlotte typically valued?
The valuation primarily relies on adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which represents the practice’s true operating profit after normalizations. This adjusted EBITDA is multiplied by a multiple that depends on factors like risk, growth potential, and team stability. Multiples for practices with over $1M EBITDA range between 5.5x to 7.5x.
What should I consider when planning for life after selling my occupational therapy practice?
Consider your role during the transition, how long and in what capacity you’ll stay. Ensure job security and benefits for your staff with the new owner. Carefully structure your payout for tax efficiency, possibly including earnouts or rollover equity. Lastly, choose a buyer who will preserve your practice’s legacy and reputation in the Charlotte community.
What are the main phases in the process of selling an occupational therapy practice?
The process typically involves four phases: 1) Preparation — gather financials, organize data, and highlight value drivers, 2) Marketing — confidentially approach qualified buyers and create competition, 3) Diligence — buyers thoroughly inspect financials and operations, and 4) Closing — finalize negotiations and plan the transition to new ownership. Expert guidance is recommended at each phase to maximize value and avoid pitfalls.