As an Occupational Therapy practice owner in Jacksonville, the thought of selling your practice is a major milestone. It involves more than just finding a buyer. It is about securing your financial future and protecting the legacy you have built. This guide offers insight into Jacksonville’s dynamic market, explores how your practice is valued, and outlines the steps to a successful transition. Proper preparation can significantly change the outcome of your sale.
A Look at the Jacksonville OT Market
The market for Occupational Therapy in Jacksonville is strong and active. This creates a promising environment for practice owners considering an exit. Understanding the landscape is the first step in positioning your practice for a premium valuation.
Strong Demand for Services
Jacksonville shows clear signs of a healthy demand for OT. The job market for therapists is very active, and the average salary of around $97,000 indicates a robust economic environment for the profession. This high demand means strategic buyers, from private equity groups to local health systems, are likely looking for opportunities to expand their footprint in the area.
A Competitive Landscape
You are not operating in a vacuum. The presence of major players like Brooks Rehabilitation and UF Health Jacksonville confirms the city’s need for OT services. While they represent competition, their existence also validates the market for potential buyers. A successful sale depends on clearly showing how your practice is different, whether through a niche specialization like pediatrics, a loyal patient base, or more efficient operations.
Key Considerations Beyond the Numbers
When you prepare to sell, your thinking must go beyond revenue and profit margins. A potential buyer is acquiring more than just your equipment and patient list. They are investing in your reputation, your team, and your unique place in the Jacksonville community. How will the transition affect your dedicated staff? What happens to the legacy you’ve spent years building? Answering these questions is a core part of the process. A buyer who aligns with your values is often the one who will see the most potential in your practice and, in turn, offer the best terms.
What We See in Today’s Market Activity
The market for healthcare practices is evolving, and Occupational Therapy is no exception. We are seeing a few key trends that Jacksonville owners should be aware of.
- An Active Buyer Pool. Both private equity-backed groups and established local providers are looking to grow. They are actively seeking well-run, profitable OT practices to acquire. This creates a competitive environment, which is good news for sellers.
- Valuation Multiples. For smaller OT practices, we often see valuation multiples in the range of 3x to 6x of Adjusted EBITDA. Where your practice falls in that range depends on factors like size, profitability, and provider dependency.
- The Importance of Story. Buyers don’t just buy numbers. They buy a story of future growth. A practice with a strong reputation in a niche like school-based OT or a clear path to adding new therapists will attract more interest and a higher valuation.
The Sale Process Is a Marathon, Not a Sprint
A successful sale rarely happens by chance or from a single, unsolicited offer. It is the result of a deliberate, confidential process designed to protect your interests and maximize value. It begins long before the “For Sale” sign goes up. The journey generally involves preparing your financials and operations, confidentially identifying and approaching a curated list of qualified buyers, and managing negotiations. A critical phase is due diligence, where the buyer inspects every aspect of your business. Many deals encounter problems here. Proper preparation is what separates a smooth closing from a frustrating collapse.
How Your Practice Is Valued
Valuing your OT practice is not about a generic “rule of thumb.” Sophisticated buyers use a specific metric: Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. More importantly, it “adjusts” your reported profit by adding back owner-specific expenses like an above-market salary or personal vehicle lease. We often find that a practice owner’s true earnings power is 25-40% higher than what they see on a tax return. This adjusted number becomes the foundation of your valuation. That number is then multiplied by a figure that reflects your practice’s quality and risk.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Owner-dependent | Associate-driven |
| Growth | Stagnant or slow | Consistent, proven growth |
| Services | General OT only | Diverse mix (e.g., peds, cash-pay) |
| Systems | Messy financials | Clean books, clear reporting |
Planning for Life After the Sale
The day you sign the closing papers is not the end of the story. The structure of your deal has long-term implications for your finances and your future. Thinking about these factors ahead of time ensures the final agreement truly meets your goals.
Structuring Your Payout
How you receive your money matters just as much as how much you get. Will the transaction be an asset sale or a stock sale? Each has a different tax impact. Part of the price may also be in an “earnout,” where you receive additional payments if the practice hits certain performance targets after the sale. Another powerful tool is “rollover equity,” where you retain a minority stake in the new, larger company. This allows you to benefit from a second, often larger, sale down the road.
Your Future Role
Do you want to leave immediately, or would you prefer to stay on for a year or two to ensure a smooth transition? Some owners want a clean break, while others want to continue practicing without the headaches of running a business. Defining your ideal future role is a key part of finding the right buyer and structuring a deal that works for you personally and professionally.
Frequently Asked Questions
What makes Jacksonville, FL a good market for selling an Occupational Therapy practice?
Jacksonville has a strong and active Occupational Therapy market characterized by a high demand for services, a robust economic environment with therapists earning an average salary of around $97,000, and active job opportunities. This creates a promising environment for sellers with buyers including private equity groups and local health systems looking to expand.
How is the value of an Occupational Therapy practice in Jacksonville typically determined?
Valuation is commonly based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which adjusts reported profits by adding back owner-specific expenses. Multiples typically range from 3x to 6x of Adjusted EBITDA, influenced by factors such as practice size, profitability, provider model, growth trajectory, service diversity, and financial reporting quality.
What factors beyond financial numbers should I consider when selling my Occupational Therapy practice?
Buyers consider more than revenue and profit margins; they invest in your practice’s reputation, team, and community legacy. Consider how the transition will affect your dedicated staff and the alignment of the buyer’s values with yours. Protecting your legacy and staff during the transition is crucial for a successful sale.
What is involved in the sales process of an Occupational Therapy practice in Jacksonville?
The sales process is deliberate and confidential, beginning well before listing the practice. It involves preparing financials and operations, identifying and approaching qualified buyers, managing negotiations, and thorough due diligence where the buyer inspects every detail. Proper preparation is key to a smooth closing and avoiding deal collapse during due diligence.
What should I consider about my future after selling my Occupational Therapy practice?
Think about how you want to receive your payout (asset sale vs. stock sale, earnouts, rollover equity) because of tax and financial implications. Also, determine your future role—whether to leave immediately or stay on for a transition period. Aligning these aspects with your personal and financial goals helps structure a deal that meets your needs.