If you own a school or community-based ABA practice in Oregon, you are in a unique position. Demand for your services is high, with the number of providers growing 38% recently. At the same time, new state regulations are changing the rules for practice sales. This guide provides clarity on how to navigate this market, protect your legacy, and achieve an optimal outcome.
Market Overview: Growth Meets Regulation
The market for selling an ABA practice in Oregon is defined by two powerful, competing forces. Understanding them is the first step toward a successful sale.
A Growing Need for Services
The demand for high-quality ABA services is undeniable. Nationally, the market is projected to grow nearly 5% annually through 2032. Oregon mirrors this trend, with a significant increase in the number of licensed ABA providers. For a practice with a strong reputation and stable contracts, this underlying demand creates a very favorable environment. Buyers are actively looking for established, successful practices to acquire.
The Regulatory Factor
Oregon has taken a distinct path regarding healthcare ownership. Recent laws aim to limit corporate influence, which has slowed private equity investment compared to the national average. This is not necessarily a negative for sellers. It means that buyers who understand and respect the states focus on clinical quality are at an advantage. It also makes practices with deep community and school ties particularly valuable.
Key Considerations for Oregon ABA Practices
Beyond general market trends, buyers will focus on the specific operational strengths of your school and community-based practice. Your stable contracts with school districts are a major asset. Buyers want to see a history of successful partnerships and a clear understanding of the School-Based Health Services (SBHS) reimbursement system. Equally important is your payer mix and relationships with insurance providers under the Oregon Health Plan. Finally, your team is critical. A potential buyer will value a practice with qualified, licensed staff and low turnover, as this demonstrates continuity of care and reduces their operational risk post-acquisition. Preparing documentation on these three areas is a critical first step.
Current Market Activity and Timing
Many owners ask us,
Is now the right time to sell?
While M&A activity can fluctuate, the best time to sell is when your practice is prepared. A market that seems “slower” is often the perfect window to organize your financials and strategic narrative so you can command a premium valuation when you are ready. Buyers pay for proven performance, not just potential. Starting the preparation process 12-24 months before your target date puts you in control.
Here is what we see in the current Oregon ABA market:
| Market Factor | Implication for Sellers |
|---|---|
| High Demand | Well-run practices with strong school contracts are attractive. |
| Regulatory Scrutiny | Buyers prioritize practices with excellent compliance records. |
| Strategic Buyers | More focus on fit and quality over rapid, high-volume deals. |
| Preparation Window | An ideal time to optimize operations before going to market. |
The 4 Stages of a Practice Sale
Selling your practice is a structured process. While every deal is unique, most follow a clear pathway. We guide our clients through four primary stages.
- Preparation and Valuation. This is the most important phase. It involves a deep analysis of your financials, normalizing expenses to find your true profitability (Adjusted EBITDA), and preparing a confidential marketing package that tells your practice’s story.
- Confidential Marketing. We identify and discreetly approach a curated list of qualified buyers. This is not about listing your practice publicly. It is about creating a competitive environment among serious, well-vetted potential partners.
- Negotiation and Due Diligence. After receiving offers, we help you negotiate the best terms. The selected buyer then begins due diligence, where they verify your financial, clinical, and operational information. This is where thorough preparation pays off.
- Closing and Transition. The final stage involves legal documentation and the official transfer of ownership. A key part of this is establishing a clear transition plan for your staff, clients, and community partners.
How Your ABA Practice is Valued
A professional valuation is the foundation of any successful sale. It is not about a “rule of thumb” or what a similar practice sold for years ago. Sophisticated buyers value your practice based on a clear formula: Adjusted EBITDA multiplied by a market-based multiple. Your Adjusted EBITDA is your true cash flow, calculated by taking your net income and adding back interest, taxes, depreciation, amortization, and certain personal or one-time expenses. The multiple applied to that number is influenced by risk and growth potential. For an ABA practice in Oregon, a higher multiple is driven by factors like having multiple providers (not just owner-dependent), strong school contracts, a diverse payer mix, and a track record of growth.
Planning for Life After the Sale
The day your sale closes is not the end of the journey. It is the beginning of your next chapter. A successful transition plan considers both your professional legacy and your financial future.
Your Professional Transition
Protecting your staff and ensuring clients receive uninterrupted care is a top priority. A good sale agreement includes a detailed transition plan. This may involve you staying on for a period of time to ensure a smooth handover. It also addresses how your dedicated team members will be integrated into the new organization. This protects the practice you built.
Your Financial Future
How your deal is structured has major implications for your after-tax proceeds. We help owners think through this from the beginning. This includes planning for potential earnouts, where a portion of the sale price is tied to future performance, or equity rollovers, where you retain a stake in the new, larger entity. Early planning can significantly impact your net financial outcome.
Frequently Asked Questions
What is driving the high demand for school and community-based ABA practices in Oregon?
The demand for ABA services in Oregon is growing significantly due to an increase in the number of licensed providers and a national market growth projection of nearly 5% annually through 2032. This growth is fueled by the need for high-quality ABA services in schools and communities.
How do new Oregon state regulations impact the sale of ABA practices?
Oregon’s new laws aim to limit corporate influence on healthcare ownership, which has slowed private equity investment in ABA practices. These regulations favor buyers who prioritize clinical quality, making practices with strong community and school ties particularly valuable and appealing to buyers.
What operational strengths do buyers look for in a school and community-based ABA practice?
Buyers focus on stable contracts with school districts, a clear understanding of the School-Based Health Services (SBHS) reimbursement system, a diverse payer mix including relationships with insurance providers under the Oregon Health Plan, and a qualified, licensed staff with low turnover that ensures continuity of care.
When is the optimal time to sell a school and community-based ABA practice in Oregon?
The best time to sell is when your practice is well-prepared, which can be up to 12-24 months before the target sale date. Preparation includes organizing financials and strengthening the practice’s strategic narrative so you can command a premium valuation regardless of market fluctuations.
How is the value of an ABA practice determined in Oregon?
The value of an ABA practice is determined by a professional valuation based on Adjusted EBITDA multiplied by a market-based multiple. Factors affecting the multiple include having multiple providers, strong school contracts, a diverse payer mix, low operational risk, and a track record of growth which collectively increase the practice’s attractiveness to buyers.