Selling your occupational therapy practice is one of the most significant financial and professional decisions you will ever make. For practice owners in Portland, Oregon, the current market presents a strong opportunity, but realizing its full potential requires careful planning and strategic execution. This guide offers a clear overview of the market, key considerations for selling, and the steps involved in achieving a successful transition. We will help you understand the landscape so you can move forward with confidence.
Curious about what your practice might be worth in today’s market?
Market Overview
The environment for selling an occupational therapy practice is robust, supported by strong national trends and unique local advantages in Portland.
A Growing National Demand
The U.S. occupational therapy market is valued at over $59 billion and is projected to grow steadily over the next decade. This growth is driven by an aging population and a greater focus on rehabilitative care. For practice owners, this translates to heightened interest from a wide range of motivated buyers looking to enter or expand in a stable healthcare sector. This demand creates a favorable selling climate.
The Portland Advantage
Portland stands out as an attractive market. The city’s high quality of life makes it a desirable place for therapists to live and work, ensuring a talented labor pool for a potential new owner. Furthermore, the presence of a strong professional community, supported by organizations like the Occupational Therapy Association of Oregon (OTAO), signals a mature and stable operating environment. This combination of national growth and local market strength makes now a compelling time to consider your options.
Key Considerations
When you think about selling, the first question is often about the price. That is important, but a successful sale goes much deeper. You also need to consider what will happen to your patients, your dedicated staff, and your own future role. Will your legacy of patient care continue? Will your employees have a secure future? What does life look like for you after the transaction? Answering these questions is critical to finding a buyer who aligns not just with your financial goals, but also with your values. Structuring a deal that protects your team and your life’s work is a complex process. It requires more than just financial negotiation. It requires a partner who understands the human side of the transaction.
Market Activity
The market for OT practices is more active than many owners realize, but the most attractive deals often happen outside of the public eye. Buyer interest in the Portland area is strong, with activity coming from several key groups.
We are seeing a consistent flow of interest from:
- Strategic Acquirers: Larger regional or national therapy groups looking to grow their footprint in the Pacific Northwest.
- Private Equity-Backed Platforms: Investment groups that see OT as a stable platform for growth and are looking to acquire established practices.
- Local Competitors and Hospitals: Nearby practices or health systems seeking to expand their service lines and patient base through acquisition.
This competitive tension is good news for sellers. However, navigating these different buyer types requires a discreet, controlled process. Creating a competitive environment confidentially is the key to driving valuation and securing the best possible terms, ensuring you don’t leave money on the table.
The Sale Process
Selling your practice is a structured journey, not a single event. It begins long before your practice is presented to buyers. The first phase involves organizing your financial records and operational documents to withstand deep scrutiny. This is followed by a comprehensive valuation to establish a credible asking price. Only then does the confidential marketing process begin, where we identify and approach a curated list of qualified buyers. The final stages involve negotiating offers, managing the demanding due diligence period where buyers verify every detail of your practice, and finalizing legal contracts for closing. Each step presents challenges, but with a clear roadmap and experienced guidance, the path to a successful closing becomes straightforward and manageable.
Valuation
Determining your practice’s true worth is more an art than a science. A common mistake is to rely on simple rules of thumb, like a multiple of revenue. Sophisticated buyers, however, focus on a more precise metric: Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your profits by adding back one-time or personal expenses to show the true cash flow available to a new owner. The valuation multiple applied to that EBITDA is then influenced by several factors.
| Factor | Impact on Valuation |
|---|---|
| Solo-Provider Dependent | Lower Multiple |
| Multi-Provider, Associate-Driven | Higher Multiple |
| Well-Documented Processes | Higher Multiple |
| Unstable Payer or Referral Mix | Lower Multiple |
Preparing your financials correctly and telling a compelling story around these factors can significantly increase your final valuation. Without this, you risk being undervalued.
Post-Sale Considerations
Your work is not finished once the sale documents are signed. The structure of your deal has long-term implications that require careful planning. For example, you need a clear strategy for minimizing taxes on the proceeds. You also must define your own transition role. Will you stay on for six months, a year, or longer? Many modern deals also include components like an earnout, where you receive additional payments for hitting future performance targets, or an equity rollover, where you retain a minority stake in the new, larger company. This can provide a “second bite of the apple” during a future sale. Planning for these post-sale realities is not an afterthought. It is a core part of a successful exit strategy.
Every practice owner deserves to understand their options before making any decisions.
Frequently Asked Questions
What is the current market outlook for selling an occupational therapy practice in Portland, OR?
The market for selling occupational therapy practices in Portland, OR is robust, supported by strong national demand driven by an aging population and local advantages like a talented labor pool and a stable professional community. The city’s high quality of life and the presence of organizations like the Occupational Therapy Association of Oregon make it an attractive market for buyers.
How is the value of an occupational therapy practice determined?
The value of an occupational therapy practice is primarily assessed using Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which shows the true cash flow available to a new owner. Factors influencing the valuation multiple include whether the practice is solo-provider dependent or multi-provider/associate-driven, the stability of payer or referral mixes, and how well-documented the processes are.
Who are the typical buyers interested in occupational therapy practices in Portland?
Typical buyers include strategic acquirers such as larger regional or national therapy groups, private equity-backed investment platforms looking for stable growth opportunities, and local competitors or hospitals wishing to expand their patient base and services through acquisition.
What are important considerations beyond price when selling my practice?
Important considerations include ensuring the continuity of patient care, securing the future of your dedicated staff, and determining your own future role post-sale. Finding a buyer who aligns with your values and structuring a deal that protects your team and legacy requires thoughtful planning beyond just financial negotiations.
What does the sale process of an occupational therapy practice involve?
The sale process involves several steps: organizing financial and operational documents, conducting a comprehensive valuation, confidentially marketing the practice to qualified buyers, negotiating offers, managing due diligence where buyers verify practice details, and finalizing legal contracts for closing. Experienced guidance and careful planning make this structured journey manageable.