Selling your Orlando-based Orthopedic and Post-Surgical Rehab practice is one of the biggest decisions of your career. The market is dynamic, with both unique opportunities and specific challenges. Success requires more than just finding a buyer. It demands a clear understanding of your practice’s true value, the local market landscape, and a well-executed plan. This guide breaks down what you need to know to navigate the process and achieve your goals.
Market Overview: A Tale of Growth and Competition
The Orlando market for physical therapy and rehabilitation is expanding rapidly. This growth presents a significant opportunity for practice owners. However, it also comes with increasing competition from large, well-funded health systems and specialty groups that are aggressively growing their footprint in Central Florida.
A Growing, Crowded Field
Major players like Brooks Rehabilitation and AdventHealth are actively expanding their outpatient clinics. This means that while the patient base is growing, so is the fight for market share. For independent practices, this highlights the need to have a strong, defensible position, whether through a niche specialty, deep referral relationships, or exceptional patient outcomes.
The Rise of Private Equity
Across the country, private equity (PE) investment in healthcare has reached an all-time high. Orthopedic and rehab practices are prime targets. For you, this means there is a pool of sophisticated, well-capitalized buyers actively looking for practices like yours. It also means you will likely be negotiating with experienced dealmakers, making preparation and expert guidance more important than ever.
Key Considerations Before You Sell
Before you even think about putting your practice on the market, focusing on a few key areas can dramatically change the outcome of your sale. Buyers, especially sophisticated ones, look for a compelling story backed by clean data. Here are three critical areas to focus on.
- Your Financial Story. Buyers want to see more than just top-line revenue. They dig into your profitability, overhead, and payer mix. If your overhead is below the industry average of around 52% of net collections, that is a powerful selling point. We help owners clean up their financial records to clearly show the practice’s true earning power, or Adjusted EBITDA, which is the foundation of any valuation.
- Your Growth Potential. A buyer isn’t just purchasing your past performance. They are investing in future growth. How can your practice serve more patients? Are there new services you could add? Do you have strong, diversified referral sources that are not dependent on a single physician? Answering these questions with a clear plan can significantly increase your valuation.
- Your People and Reputation. Your experienced team and strong community reputation are valuable assets. Detailing the qualifications of your therapists and the strength of your patient relationships helps a buyer see the stability and quality of the practice they are acquiring.
Market Activity: The Time is Now
The healthcare M&A market is not just active. It is strategic. Billions of dollars in private equity capital are flowing into healthcare, and consolidators are looking for well-run practices to join their platforms. This is not a theoretical trend. We see it happening every day.
The PE Playbook in Action
Private equity firms and large strategic buyers are running a clear playbook. They acquire successful “platform” practices and then grow them by acquiring smaller “tuck-in” practices in the same region. For an Orlando practice owner, this means you could be an attractive acquisition target for a larger group looking to expand its Florida presence.
What Buyers Are Paying For
In one recent transaction, a five-clinic physical therapy practice was acquired for $2.1 million. While every practice is unique, this shows that there is a tangible market with real transactions happening. Buyers are paying premiums for practices with clean financials, a strong management team, and clear growth opportunities. Timing your sale to align with these market currents can be the difference between an average outcome and a premium one.
The Sale Process: A 4-Phase Journey
Selling your practice is a structured process, not a single event. Understanding the typical phases can help you feel more in control and prepare for what is ahead. Running a professional process ensures you maintain confidentiality and create a competitive environment to get the best offer.
- Preparation and Valuation. This is the foundation. It involves organizing your financial and operational documents and getting a comprehensive, confidential valuation. This tells you what your practice is worth and prepares you for buyer scrutiny.
- Confidential Marketing. This phase involves identifying and discreetly approaching a curated list of potential buyers who are a good fit for your practice, your team, and your legacy. This is not about putting a “for sale” sign on the door. It is about running a targeted, confidential search.
- Negotiation and Due Diligence. After you receive offers, you negotiate the key terms. The chosen buyer will then conduct due diligence, where they verify all the information about your practice. This is often where deals face challenges, so being prepared is critical.
- Closing and Transition. This final phase involves the legal documentation to finalize the sale and the execution of a transition plan to ensure a smooth handover for you, your staff, and your patients.
What Is Your Practice Really Worth?
Many physicians I talk to are not sure how to value their practice. They often look at their tax returns and undervalue their business. A professional valuation is based on your practice’s true cash flow (Adjusted EBITDA) and a multiple that reflects current market conditions.
Adjusted EBITDA is your net income plus add-backs like owner’s personal expenses run through the business, above-market owner salary, and other non-recurring costs. This number reflects the true profitability a new owner can expect. This Adjusted EBITDA is then multiplied by a market-based number to determine your practice’s Enterprise Value.
| Metric | Description | Example |
|---|---|---|
| Reported Profit | Your practice’s net income | $400,000 |
| Adjusted EBITDA | True cash flow after adding back owner perks & non-recurring costs | $550,000 |
| Valuation Multiple | Based on market, specialty, and risk (e.g., 5.5x) | x 5.5 |
| Enterprise Value | The starting point for your practice’s worth | $3,025,000 |
As you can see, understanding how to calculate and present your Adjusted EBITDA is the first step to maximizing your practice’s value. Physicians who optimize this number before a sale often achieve significantly higher valuations.
Post-Sale Considerations: Planning for What’s Next
The deal is not done when the papers are signed. Your transition out of ownership requires just as much strategic thought as the sale itself. Answering a few key questions ahead of time will protect your legacy and your financial future.
- What is my new role? Many buyers want the selling physician to stay on for a period of time. Do you want to continue practicing full-time, work part-time, or exit completely? Structuring this relationship upfront is key to your happiness post-sale.
- How is my team protected? You have likely spent years building a talented and loyal team. Ensuring they have a secure future under new ownership is a common goal for sellers. This can be negotiated as part of the deal.
- How is the deal structured for me? Your sale will likely involve more than just cash at close. It could include an earnout or rollover equity, where you retain a stake in the new, larger company. How this is structured has major implications for your after-tax proceeds and your potential for a “second bite of the apple” when the larger entity sells again in the future.
Planning for these elements early in the process is critical. A well-structured deal protects your team, preserves your legacy, and puts you in the best possible position for your next chapter.
Frequently Asked Questions
What is the current market environment for selling an Orthopedic & Post-Surgical Rehab practice in Orlando, FL?
The Orlando market is rapidly expanding but also increasingly competitive, with large health systems like Brooks Rehabilitation and AdventHealth growing their presence. There is also a high level of private equity investment targeting practices like yours, creating opportunities but also requiring savvy negotiation.
What financial aspects should I focus on before selling my practice?
Buyers focus on your financial story, including profitability, overhead (ideally below 52% of net collections), and payer mix. It’s important to clean up financial records to show true earning power through Adjusted EBITDA, which forms the basis for valuation.
How do buyers determine the value of my practice?
Valuation is based on your practice‚Äôs true cash flow (Adjusted EBITDA), which adjusts net income for owner perks and non-recurring costs. This figure is multiplied by a market-based multiple (like 5.5x) reflecting market conditions, specialty, and risk, resulting in your practice’s enterprise value.
What does the typical process of selling an Orthopedic & Post-Surgical Rehab practice involve?
The sale process has four phases: 1) Preparation and Valuation — organizing documents and getting a confidential valuation; 2) Confidential Marketing — discreetly approaching potential buyers; 3) Negotiation and Due Diligence — negotiating terms and buyer verification; 4) Closing and Transition — finalizing sale documents and ensuring smooth handover.
What should I consider for post-sale planning?
Post-sale planning includes deciding your new role with the practice (full time, part time, or exiting), securing your team’s future under new ownership, and structuring the deal possibly including earnouts or rollover equity to maximize financial and legacy outcomes.