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Selling your occupational therapy practice is one of the most significant financial and professional decisions you will ever make. For practice owners in Milwaukee, the current market presents a unique set of opportunities and challenges. Navigating this landscape requires more than just a “For Sale” sign. It demands careful preparation, a deep understanding of your practice’s value, and a clear strategy to attract the right buyer. This guide provides the initial insights you need to start the journey.

Curious about what your practice might be worth in today’s market?

Milwaukee’s OT Market: A Snapshot

The market for occupational therapy in Milwaukee is both active and attractive to potential buyers. The environment is shaped by a few key factors that work in a seller’s favor. Your practice is not just a local business. It is a valuable asset in a growing healthcare sector.

Understanding the local landscape is the first step. Here is what makes Milwaukee a compelling place for an OT practice sale right now:

  1. Growing Demand: Wisconsin’s aging population, particularly the growth in residents aged 75 and older, directly increases the need for occupational therapy services. This demographic tailwind creates a sustainable demand that buyers find very attractive.
  2. A Competitive Field: Milwaukee is home to numerous OT practices, which means buyers see it as a proven market. While this creates competition, it also signals a healthy ecosystem where a well-run practice can stand out and command a premium.
  3. A Stable Talent Pool: With strong OT programs at institutions like UW-Milwaukee and MATC, the region produces a steady stream of new therapists. This helps address one of a buyer’s biggest concerns: staffing and future growth potential.

Key Considerations Before a Sale

Prospective buyers are looking for a business that is not only profitable but also resilient and well-managed. Before you even think about putting your practice on the market, you should assess its health through the eyes of a buyer. They will look past the surface-level numbers and dig into the core operations of your practice.

Focusing on operational efficiency, a stable patient base with strong referral sources, and demonstrable quality of care is critical. For instance, a high Client Satisfaction Score, ideally over 90%, tells a powerful story. It is also important that your practice’s regulatory compliance and licensing are in perfect order. Buyers and their lenders perform extensive due diligence, and any compliance gaps can quickly derail a promising deal. Preparing these areas well in advance is not just good practice. It is a direct investment in your final sale price.

Understanding your practice’s current market position is the first step toward a successful transition.

Current Market Activity

The healthcare M&A market is active, and private practices are a frequent target for acquisition. The buyers in today’s market are more diverse than ever, creating multiple avenues for a potential sale.

Who Is Buying?

Interest is coming from several places. Larger regional therapy groups are often looking to expand their footprint, and a local practice with a strong community reputation is an ideal target. We are also seeing an increase in acquisitions by private equity-backed platforms seeking to build a network of clinics. These buyers often bring significant resources but also have very specific criteria for what makes a practice a good investment.

The Importance of Timing

Many owners think they should only begin the sale process when they are 100% ready to exit. The reality is that the most successful sales are planned years in advance. Buyers pay for proven, consistent performance, not just future potential. Starting the preparation now, even if your timeline is two or three years out, allows you to professionalize your operations and clean up your financials. This positions you to enter the market from a position of strength and sell on your terms, not a buyer’s.

The Sale Process at a Glance

Selling your practice is a structured process with several distinct stages. Each step requires careful management to protect confidentiality and maximize value. It begins long before a buyer is ever contacted, with internal preparation to make your practice as attractive as possible. This involves organizing financial records, reviewing contracts, and ensuring all operational systems are running smoothly.

Once prepared, the next phase involves confidential marketing to a curated list of potential buyers. After initial interest is established and non-disclosure agreements are signed, the most intensive stage begins: due diligence. Here, the buyer will scrutinize every aspect of your business, from financial statements to clinical compliance. Any surprises found here can threaten the deal. Finally, the process concludes with the negotiation of the final purchase agreement and planning for a smooth transition for your staff and patients.

Preparing properly for buyer due diligence can prevent unexpected issues.

How Your Practice Is Valued

Determining your practice s value is more complex than applying a simple formula. While some use a multiple of annual revenue, sophisticated buyers focus on a more precise metric: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents the true cash flow of the business by adding back one-time costs and owner-specific expenses.

Therapy practices often sell for a multiple of this Adjusted EBITDA, typically in the 3x to 6x range. However, where your practice falls in that range depends on several factors. A practice that can run without your daily involvement will command a higher multiple than one that is heavily owner-dependent. A professional valuation is the only way to get a true picture. It reframes your practice’s story and ensures you are not leaving money on the table.

Feature Standard Practice (Lower Multiple) Premium Practice (Higher Multiple)
Owner Reliance High (owner is the main therapist) Low (associate-driven team)
Patient Base Inconsistent or stagnant Strong referral network and growing
Systems & Technology Basic or paper-based records Efficient, modern EMR in place
Financial Records Disorganized or mixed Clean, clear, and tracked monthly

Valuation multiples vary significantly based on specialty, location, and profitability.

Life After the Sale

Successfully closing the deal is a milestone, but it is not the end of the story. Your planning must include what happens the day after the ink is dry. A clear transition plan is needed to ensure continuity of care for your patients and stability for your staff. You will need to decide what your role, if any, will be in the practice moving forward and have that clearly defined in the sale agreement.

Equally important are the financial implications. The way a sale is structured has a massive impact on your net proceeds after taxes. An asset sale versus an entity sale, for example, can result in vastly different tax liabilities. Planning for this with an expert can significantly increase your take-home amount, protecting the wealth you have worked so hard to build. Thinking through these post-sale details beforehand ensures your personal and financial legacy is secure.

The structure of your practice sale has major implications for your after-tax proceeds.


Frequently Asked Questions

What makes Milwaukee an attractive market for selling an Occupational Therapy practice?

Milwaukee’s market is attractive due to a growing demand driven by an aging population, a competitive field that indicates a healthy market, and a stable talent pool from local educational institutions like UW-Milwaukee and MATC.

What should I focus on before selling my Occupational Therapy practice?

Before selling, focus on operational efficiency, maintaining a stable patient base with strong referrals, achieving a high Client Satisfaction Score (ideally over 90%), and ensuring all regulatory compliance and licensing are in order.

Who are the typical buyers for Occupational Therapy practices in Milwaukee?

Buyers include larger regional therapy groups looking to expand, private equity-backed platforms building clinic networks, and local investors seeking strong community reputations. Each buyer may have specific criteria for investment.

How is the value of my Occupational Therapy practice determined?

Practice value is typically based on a multiple of Adjusted EBITDA, usually ranging from 3x to 6x. Factors affecting the multiple include owner reliance, strength of the patient base, use of modern systems and technology, and the cleanliness of financial records.

What should I consider about life after selling my Occupational Therapy practice?

Post-sale planning is crucial and includes creating a clear transition plan for staff and patients, deciding any ongoing role in the practice, and understanding the financial and tax implications of the sale structure to maximize your net proceeds.