The market for Occupational Therapy practices in Salt Lake City is strong, driven by high population growth and demand for services. If you are a practice owner, this presents a significant opportunity. Successfully selling your practice, however, requires more than just a strong market. It takes careful planning and a clear understanding of your practice’s value. This guide provides insights into the Salt Lake City market to help you navigate your transition.
Market Overview
The Salt Lake City area presents a uniquely favorable environment for Occupational Therapy practice owners considering a sale. The market is not just stable. It is expanding rapidly, creating a compelling case for potential buyers.
Exceptional Growth
Utah’s demand for occupational therapy is growing much faster than the national average. Projections have shown OT-related job growth as high as 41.4% over a decade. This signals a long-term, sustainable patient base for any incoming owner and a strong future for the practice.
A Deep Talent Pool
Salt Lake County is the hub for OT professionals in Utah. Nearly half (49%) of the state’s OTs and OTAs work here. This concentration means a new owner has access to a deep and experienced talent pool. The median work experience for OTAs here is significantly higher than the national average, which adds stability and expertise to your practice.
Key Considerations
Beyond the strong market, a successful sale depends on how well your practice is prepared. Buyers look for businesses that are not just profitable but also organized and stable. You will need to ensure your practice is fully compliant with the Utah Occupational Therapy Practice Act and that your financial records are clean and ready for review.
Many owners we speak with believe they should only start planning when they are ready to sell. They tell us, “I’m thinking of selling in 2 or 3 years.” That is the perfect time to begin. Buyers pay for proven performance, not just potential. Preparing your practice now allows you to identify areas for improvement, strengthen your referral networks, and get your documentation in order. This thoughtful preparation ensures you will sell on your terms, not a buyer’s.
Market Activity
The current M&A market is active, with significant interest in well-run healthcare practices. For Occupational Therapy in Salt Lake City, several trends make this an opportune time to explore your options.
Here are three key trends we see in the market right now:
- Buyers Have Access to Capital. Banks, including local institutions like Zions Bank, have specialized financing programs for therapy practice acquisitions. This makes it easier for independent buyers and groups to secure funding, which expands the pool of potential partners for your practice.
- Strategic Buyers Are Looking for Growth. Larger therapy groups and private equity platforms are actively looking to expand into strong markets like Salt Lake City. They are often searching for well-run practices with stable staff and strong community ties.
- Transaction Data is Private. You will not find the sale prices of local OT practices on a public website. This information is confidential. Buyers and sellers rely on advisors who have access to this data to understand current market values and ensure a fair deal.
The Sale Process
Selling your practice is a multi-stage process that requires careful management. It typically begins with preparing your practice and financial documents, as we discussed. From there, the journey involves establishing a clear valuation. This gives you a data-driven asking price.
Next, your practice is confidentially marketed to a curated group of qualified buyers. Once interest is established, the most critical phase begins: due diligence. This is where a buyer thoroughly examines your operations, financials, and contracts. Many deals encounter problems here if the initial preparation was not thorough. With proper guidance, this step becomes a smooth confirmation of value rather than a source of stress. The process concludes with negotiating the final agreement and closing the transaction.
Valuing Your Practice
Determining your practice’s true market value is the foundation of a successful sale. Buyers do not just look at your revenue. They focus on profitability, specifically a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure adjusts your net income by adding back owner-specific or one-time expenses to show the practice’s true cash flow.
That Adjusted EBITDA is then multiplied by a number, or “multiple,” to arrive at your practice’s value. For smaller OT practices, this multiple often ranges from 3x to 6x. The exact multiple depends on several factors.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | 100% reliant on owner | Associate-driven with multiple therapists |
| Referral Sources | Relies on one or two key physicians | Diverse network of referral partners |
| Payer Mix | Heavy concentration on a single payer | Healthy mix of insurance and private pay |
| Systems | Manual billing and scheduling | Modern practice management software |
A professional valuation tells a story with your numbers. It frames your practice’s strengths to justify the highest possible multiple to a buyer.
Post-Sale Considerations
The day you close the sale is not the end of the journey. It is the beginning of a transition. Planning for what comes next is critical for protecting your legacy, your staff, and your financial outcome. A clear transition plan ensures a smooth handover of patient care and operational duties.
Some owners want a clean break, while others prefer to stay on for a period of time. Your sale agreement can be structured to match your goals. This might include an earnout, where you receive additional payments based on future performance, or continued involvement as a clinical leader. Thinking through these possibilities early in the process helps us find the right buyer and structure the right deal. A successful transition honors the hard work you invested in your practice and sets everyone up for future success.
Frequently Asked Questions
What makes the Salt Lake City market favorable for selling an Occupational Therapy practice?
Salt Lake City’s Occupational Therapy market is strong due to high population growth and demand for services. Utah has projected OT-related job growth as high as 41.4% over a decade, signaling a sustainable patient base. Additionally, nearly half of Utah’s OTs and OTAs work in Salt Lake County, providing a deep talent pool for new owners.
When is the best time to start preparing to sell an Occupational Therapy practice in Salt Lake City?
It is ideal to start planning your sale 2 to 3 years before you intend to sell. Buyers value proven performance, so early preparation helps improve operations, strengthen referral networks, ensure compliance, and organize documentation, allowing you to sell on your terms.
What factors influence the valuation multiple of an Occupational Therapy practice in Salt Lake City?
Valuation multiples for smaller OT practices typically range from 3x to 6x Adjusted EBITDA. Factors influencing the multiple include whether the practice is owner-reliant or associate-driven, the diversity of referral sources, the payer mix, and the sophistication of practice management systems.
What does the sale process of an Occupational Therapy practice typically involve?
The sale process includes preparing your practice and financial documents, establishing a clear data-driven valuation, confidentially marketing the practice to qualified buyers, undergoing due diligence where the buyer reviews operations and financials, and finally negotiating and closing the sale agreement.
What post-sale considerations should Occupational Therapy practice owners in Salt Lake City keep in mind?
After closing the sale, planning a transition is critical for legacy, staff, and patient care continuity. Sales can be structured for a clean break or continued involvement, including earnouts or clinical leadership roles. Early planning ensures a smooth handover and future success for all parties involved.