Guide to Selling a Orthopedic & Post-Surgical Rehab Practice in Nevada

Selling your Orthopedic and Post-Surgical Rehab practice is one of the most significant decisions you will ever make. In Nevada, the current market presents a unique and compelling opportunity for owners who are prepared. The state’s high demand for healthcare creates a favorable environment for sellers, but realizing your practice’s full value requires careful planning and a clear understanding of the process. This guide provides a straightforward overview to help you navigate the path from consideration to a successful closing.

Market Overview

The demand for physical therapy services is growing nationwide, with the U.S. market projected to expand from roughly $49 billion to over $61 billion by 2030. This growth is driven by an aging population and a greater focus on managing chronic conditions.

Here in Nevada, this national trend is amplified. The state faces a well-documented shortage of healthcare professionals, ranking near the bottom for active physicians per capita. For a buyer, acquiring an established practice is far more efficient than starting from scratch. This dynamic puts owners of specialized, well-run Orthopedic and Rehab practices in a remarkably strong position. Buyers are actively looking for turnkey operations with stable patient flow and referral networks, and they are willing to pay a premium for them in this high-demand market.

Key Considerations for Sellers

Before you place your practice on the market, buyers will look closely at its underlying health and stability. From our experience, focusing on a few key areas can dramatically increase your practice’s attractiveness and value.

1. Reduce Owner Dependency. A practice that can thrive without your daily, hands-on involvement is much more valuable. Buyers look for strong management teams and systems that ensure smooth operations will continue after you transition out. The more the practice runs on its systems, not on you, the higher the value.

2. Document Your Referral Sources. Where do your patients come from? A successful practice has a diverse and stable network of referral sources, such as physicians, surgical centers, and direct patient access. Be prepared to show a history of consistent patient volume from multiple sources, as this reduces perceived risk for a new owner.

3. Clean Up Your Financials. A buyer’s due diligence process is intense. They will review years of your financial statements, tax returns, and billing records. Having clean, clear, and accurate books is not optional. We often find this is the area where a little preparation goes the longest way in building a buyer’s confidence.

Market Activity

The current M&A market for healthcare practices in Nevada is active. We are seeing significant interest from a range of buyers, including private equity-backed platforms looking to expand their footprint, larger regional therapy groups, and even other local practices seeking to grow. This competitive environment is good news for sellers.

For small to mid-sized Orthopedic and Rehab clinics, valuations are often based on a multiple of Adjusted EBITDA (a measure of profitability). These multiples can typically range from 3x to 6x, but this is not a fixed rule. Practices with strong growth potential, modern facilities, and low reliance on the owner can command higher figures. The key is understanding how to position your practice to attract the right type of buyer who will see its strategic value, not just its current profit.

The Sale Process at a Glance

Selling a medical practice is not a quick transaction. It is a process that typically takes 6 to 12 months from start to finish. Understanding the major steps can help you prepare for the journey ahead.

How Your Practice is Valued

I often find that practice owners are not sure what their business is truly worth. The value of your practice is more than just the equipment in it. Sophisticated buyers base their offers on a key metric: Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization.

In simple terms, it’s a way to measure your practice’s real cash flow. We calculate it by taking your net income and adding back expenses a new owner wouldn’t have, such as your personal car lease, excess salary above market rate, or other one-time costs. This adjusted number gives a truer picture of profitability. A buyer then applies a “multiple” to this figure to arrive at a valuation. A higher multiple is given to practices with lower risk and higher growth potential. This is why the preparation we discussed earlier is so important. It is not just about selling your practice; it is about telling its story in a way that maximizes its value.

Post-Sale Considerations

The work is not over once the deal is signed. Planning for what comes next is critical for ensuring your financial security and the continued success of the practice you built.

Your Future Role

Many deals require the seller to stay on for a transition period, which could range from a few months to a couple of years. This can be structured as a formal employment agreement or a consulting arrangement. Deciding what you want your involvement to be post-sale is an important part of the negotiation.

The Tax Question

How your sale is structured as an asset sale or an entity sale has massive tax implications. This single decision can mean a difference of hundreds of thousands of dollars in your net proceeds. It is a complex area where getting expert advice before the sale is not just helpful; it is necessary for protecting your wealth.

Protecting Your People

A major concern for most owners is what will happen to their dedicated staff and loyal patients. A well-managed transition plan, with clear communication, is key. The right buyer will want to maintain continuity and retain your team, and this can be made a priority during negotiations to protect your legacy.