A Guide for Owners of School & Community-Based Practices
The market for School & Community-Based ABA practices in Portland, OR, is active. If you are a practice owner, understanding this landscape is the first step toward a successful sale. This guide offers a clear overview of current market dynamics, valuation drivers, and the key steps involved in a successfull transition. We will help you navigate the process to realize the full value of the practice you have built.
Market Overview
The Portland Market
The Portland area presents a unique environment for ABA providers. A progressive healthcare landscape and strong community support for autism services drive consistent demand. However, this also means the market is competitive. Practices with solid reputations, tenured clinical staff, and established contracts with local school districts are particularly attractive to acquirers. Your relationships within the community are a significant asset.
Buyer Interest
We see significant interest from both regional and national buyers looking to enter or expand in the Pacific Northwest. These groups include multi-state ABA platforms and private equity investors. They are searching for well-run practices that can serve as a foundation for future growth in the region. This trend is driving strong valuations for the right kind of practice.
Strategic Importance
For buyers, acquiring a Portland-based practice is a strategic move. It provides an immediate foothold in a desirable market. They are not just buying your current revenue. They are buying your local expertise, your payer contracts, and your connection to the community.
3 Key Considerations for Portland ABA Owners
When you prepare to sell, a buyer will look closely at the operational health of your practice. Focusing on a few areas can make a significant difference. Here are three things that matter most in the Portland market:
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Payer Contracts and Mix. A healthy mix of commercial insurance and Oregon Health Plan (OHP) contracts demonstrates stability. Buyers will analyze your reimbursement rates and the diversity of your revenue sources. Clean, well-documented billing is not just good practice. It is a major value driver.
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Clinical Staff Stability. Your team of BCBAs and RBTs is one of your most valuable assets. High staff turnover is a red flag for buyers. They want to see a stable, credentialed team that can ensure continuity of care after the transition. Protecting and retaining this team is critical.
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School and Community Contracts. Formal agreements with Portland-area school districts or long-standing community partnerships are difficult to replicate. These relationships prove your practice is integrated into the local fabric and has a reliable referral pipeline. Make sure these are well-documented and, if possible, transferable.
Market Activity
A Consolidating Industry
The ABA therapy space is undergoing significant consolidation. Larger, well-capitalized groups are actively acquiring smaller and mid-sized practices to build regional density. We have seen this play out across the country, and Portland is a key target market. These buyers are looking for established practices to become their “platform” for growth in the Pacific Northwest. This level of strategic interest often leads to premium valuations.
The Window of Opportunity
This high level of buyer interest creates a seller’s market. However, these windows do not stay open forever. Market conditions can shift based on economic factors or changes in healthcare policy. Practice owners who are prepared can take advantage of the current demand. Waiting 2-3 years could mean facing a different, more competitive buyer landscape. Preparing now means selling on your terms, not theirs.
What Is Your Practice Really Worth?
Your practice’s value is more than just the profit shown on a tax return. Sophisticated buyers look at Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We calculate this by taking your net income and adding back owner-specific expenses, like a personal car lease or an above-market salary. This gives a true picture of the practice’s profitability.
That Adjusted EBITDA figure is then multiplied by a number called a “multiple.” This multiple is not random. It changes based on several factors. Practices that are well-prepared and demonstrate strength in key areas command higher multiples.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Owner-dependent | Associate-driven clinical team |
| Size (EBITDA) | Under $500k | Over $1 Million |
| Contracts | Concentrated risk | Diverse payer & school contracts |
| Growth | Flat revenue | Consistent year-over-year growth |
An accurate valuation is the foundation of a successful sale. It is part math and part storytelling, framing your practice’s strengths for the right buyers.
A Look at the Sale Process
Selling your practice is not a single event. It is a structured process with several distinct stages. Running a professional process ensures you maintain confidentiality, create competitive tension among buyers, and avoid common pitfalls. Here is what it typically looks like:
- Preparation. This is where we work with you to gather financial documents, review contracts, and build the story of your practice. Proper preparation is the most important step for maximizing value.
- Valuation. As discussed, we establish a clear, defensible valuation based on your normalized financials and current market conditions.
- Confidential Marketing. We identify and approach a curated list of qualified, strategic buyers without revealing your practice’s identity. We do not “list” your practice. We run a confidential, targeted process.
- Due Diligence. The selected buyer will conduct a deep review of your finances, operations, and contracts. Being prepared for this stage is critical. This is where many deals encounter unexpected challenges if not managed properly.
- Closing. The final stage involves legal documentation and the transfer of funds. Our role is to guide you through this complex phase to a successful close.
Planning for Life After the Sale
The transaction is not the end of the story. A successful transition plan addresses your future role and protects the legacy you have built. Thinking about this early in the process is important for achieving your personal and financial goals.
Your Role After the Sale
Do you want to leave immediately, or stay on for a year or two to ensure a smooth transition? Your role is negotiable. Many buyers want the seller to remain involved for a period, often in a clinical or leadership capacity. We help you define an arrangement that works for you.
Protecting Your Legacy
You have built more than a business. You have built a team and a reputation in the Portland community. The right buyer will want to protect that. We help you find a partner who shares your values and is committed to supporting your staff and continuing a high standard of care for your patients.
A Second Bite of the Apple
Many transactions involve “rollover equity,” where you retain a minority stake in the new, larger company. This aligns your interests with the buyer and gives you the potential for a second, often larger, payout when the new entity is sold again in 5 to 7 years. This is how many owners create true generational wealth.
Frequently Asked Questions
What makes the Portland, OR market unique for selling a School & Community-Based ABA practice?
Portland’s market is driven by a progressive healthcare environment and strong community support for autism services, which creates consistent demand. However, it’s competitive, so practices with solid reputations, tenured clinical staff, and established contracts with local school districts are especially attractive to buyers.
Who are the typical buyers interested in purchasing an ABA practice in Portland, OR?
Buyers include regional and national buyers like multi-state ABA platforms and private equity investors looking to establish or expand their presence in the Pacific Northwest. They seek practices that can serve as a foundation for future growth, offering strong valuations for well-run operations.
What are the key factors that influence the valuation of a Portland ABA practice?
Valuation depends on factors like adjusted EBITDA, the stability and mix of payer contracts (commercial insurance and Oregon Health Plan), clinical staff stability, and school/community contracts. Practices with associate-driven clinical teams, revenues over $1 million, diverse contracts, and consistent growth command higher multiples.
What are the critical steps involved in selling a School & Community-Based ABA practice in Portland?
The sale process includes: 1) Preparation – gathering financials and contracts; 2) Valuation – setting a defensible value; 3) Confidential marketing – targeting qualified buyers discreetly; 4) Due diligence – buyer’s detailed review of the practice; 5) Closing – finalizing legal documents and funds transfer.
How should practice owners plan for their role after selling their ABA practice?
Owners can negotiate their post-sale role, whether leaving immediately or staying on for 1-2 years in a clinical or leadership capacity to ensure a smooth transition. Protecting the practice’s legacy and considering options like rollover equity for continued involvement and potential future payout are important for personal and financial goals.