The market for selling a physical therapy practice in Charlotte, NC, is experiencing a period of significant opportunity. Favorable demographics and active investors have created strong demand. This guide provides key insights into the local market, valuation, and the sale process to help you make informed decisions. Proper planning is the first step toward a successful transition that can help maximize the value of the business you have built.
Curious about what your practice might be worth in today’s market?
Market Overview
The demand for physical therapy services is growing across the country. The U.S. Bureau of Labor Statistics projects that employment for physical therapists will increase by 14% between 2023 and 2033. This growth is driven by an aging population and a greater focus on non-surgical rehabilitation. For practice owners, this translates into a seller’s market.
This national trend is amplified in Charlotte. The region is seeing significant consolidation as private equity firms and larger strategic buyers look to acquire successful practices. This high level of interest not only creates more opportunities for sellers but also puts upward pressure on practice valuations. It is a good time to be a practice owner exploring your options.
Key Considerations for Sellers
Beyond the market trends, a successful sale depends on careful planning and execution. Selling your practice is one of the most significant financial and professional decisions you will ever make. Here are two areas that require your focused attention.
Building Your Advisory Team
You should not navigate this process alone. A successful transaction requires a team of specialists working together on your behalf. This typically includes an M&A advisor to manage the entire process, a transactional lawyer to handle legal agreements, and a tax advisor to structure the deal for optimal after-tax proceeds. Trying to manage these roles yourself can lead to a lower valuation and unnecessary risks.
Finding an Aligned Buyer
The highest offer is not always the best offer. Many sellers are concerned about what happens to their staff and patients after they leave. It is important to find a buyer whose mission and values align with yours. This is especially true when considering private equity buyers. We help you vet potential partners to ensure your legacy of patient care continues long after the sale is complete.
Every practice sale has unique considerations that require personalized guidance.
Market Activity in Charlotte
The consolidation trend in Charlotte is not just an idea. It is happening now. A recent, high-profile example is OrthoCarolinas decision to sell its 24 physical therapy locations to PT Solutions, an Atlanta-based firm backed by private equity. This was a strategic decision by OrthoCarolina to focus on its core orthopedic surgery business while ensuring its patients had expanded access to high-quality physical therapy.
This transaction sends a clear signal to independent practice owners in the area. Large, sophisticated groups are actively buying, and well-run practices are in high demand. This level of activity creates a competitive environment where sellers, with the right guidance, can achieve excellent outcomes.
The Sale Process at a Glance
Many owners wonder what the selling process actually involves. While every sale is unique, most follow a structured path designed to protect your confidentiality and maximize value. We manage this process from start to finish, which typically includes these phases:
- Preparation and Valuation. We work with you to analyze your financials, normalize your earnings, and establish a clear, defensible valuation for your practice.
- Confidential Marketing. We create professional marketing materials and confidentially approach a curated list of qualified buyers who we know are a good fit.
- Buyer Vetting and Offers. We field all inquiries, manage negotiations, and help you compare offers to select the best partner, not just the highest price.
- Due Diligence. This is where the buyer verifies all the information about your practice. Proper preparation here is critical. Mishandling this stage is where many deals fall apart.
- Closing. We coordinate with the legal teams to finalize the purchase agreement and ensure a smooth transition to the new owners.
Preparing properly for buyer due diligence can prevent unexpected issues.
How Your Practice is Valued
One of the first questions sellers ask is, “What is my practice worth?” In today’s market, the value is typically calculated as a multiple of your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Adjusted EBITDA is your true cash flow after adding back owner-related personal expenses or a non-market-rate salary.
Buyers pay for proven cash flow. A practice with multiple providers and strong operational systems will command a higher multiple than a practice dependent on a single owner. To illustrate, here are the financials from a recently listed PT practice in the Charlotte area:
| Financial Metric | Amount |
|---|---|
| Gross Revenue | $433,000 |
| Cash Flow (SDE/Adjusted EBITDA) | $190,000 |
| Asking Price | $400,000 |
| Implied Multiple | 2.1x |
Note: This multiple may reflect factors like owner dependency. A practice with diversified providers often achieves a multiple of 4.0x or higher.
Valuation multiples vary significantly based on specialty, location, and profitability.
Post-Sale Considerations
The day your practice sale closes is not the end of the journey. It is the beginning of your next chapter. How you structure the transaction has major implications for your financial future. Planning for life after the sale is just as important as planning for the sale itself.
Your two biggest considerations will be your team and your taxes. A well-managed communication plan, coordinated with the buyer, is key to retaining staff and ensuring a smooth transition. On the financial side, working with tax and wealth advisors ahead of time can help you understand the impact of the proceeds and structure a plan that supports your long-term goals, whether that is retirement or a new venture.
Your legacy and staff deserve protection during the transition to new ownership.
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Frequently Asked Questions
What is driving the strong demand for physical therapy practices in Charlotte, NC?
The demand is driven by favorable demographics, an aging population, a focus on non-surgical rehabilitation, and active investors including private equity firms and strategic buyers looking for consolidation opportunities.
How should I value my physical therapy practice before selling in Charlotte?
Your practice is typically valued as a multiple of Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Factors influencing this include cash flow, provider diversity, operational systems, specialty, and location. Practices with multiple providers often command higher multiples.
What are the key steps in the process of selling my physical therapy practice?
The main steps include preparation and valuation, confidential marketing, vetting buyers and comparing offers, due diligence, and closing the sale. Each phase is designed to protect confidentiality and maximize value during the transition.
Why is it important to build an advisory team to assist with selling my practice?
Selling a practice is complex and involves legal, financial, and negotiation challenges. An M&A advisor, transactional lawyer, and tax advisor will help manage the process, optimize deal structure, and avoid risks that can lower valuation or harm your interests.
What should I consider when choosing a buyer for my practice in Charlotte, NC?
Beyond price, align with a buyer who shares your mission and values to protect your staff and patients. Vet buyers carefully, especially private equity firms, to ensure they will uphold the quality of care and legacy of your practice after the sale.