Guide to Selling a School & Community-Based ABA Practice in Vermont

As the owner of a school and community-based ABA practice in Vermont, you’ve built something valuable that serves a critical need. When it comes time to consider your next chapter, navigating the sale of your practice requires a clear understanding of the unique Vermont market. This guide offers insights into the current landscape, key buyer considerations, and the steps to a successful transition, helping you prepare for what’s ahead. We understand that every practice is different and that a sale is a significant personal and financial decision.

Market Overview

The market for ABA services in Vermont is robust, but it operates under a unique set of rules that directly impacts practice value. Unlike many other states, Vermont’s approach to funding and regulation creates a distinct environment for both buyers and sellers.

A Unique Funding Landscape

Vermont’s Act 264, a law in place since 1988, is a game-changer. It mandates collaboration between education and human services, funding intensive behavioral support based on a child’s needs, not just their diagnosis. This has created a long-standing, stable funding stream for services in schools that is less dependent on traditional autism insurance reform. Buyers see this as a significant de-risking factor.

High Demand and Provider Gaps

Vermont ranks 17th in the nation for demand for BCBAs per capita. However, the state also faces a recognized shortage of BCBAs and Behavior Interventionists. For a practice owner, this is a double-edged sword. While it means your services are in high demand, it also means prospective buyers will look very closely at your team’s stability and your strategies for staff retention. Practices that have cultivated a strong, local team with a record of low turnover are positioned at a significant advantage.

Key Considerations

When a potential buyer evaluates your practice, they look beyond the surface-level numbers. They are buying a sustainable operation with a clear path to future growth. In our experience helping owners prepare for a sale, we see buyers focus intensely on a few key areas specific to the Vermont market. They want to see a practice that is not entirely dependent on the owner’s personal relationships or efforts. A strong clinical leadership team, particularly with experienced BCBAs, is one of the most valuable assets you can have. Buyers will also scrutinize your client mix. Thanks to Act 264, many Vermont practices serve a diverse population, with a high percentage of clients having Emotional Behavioral Disorders (EBD) in addition to ASD. Highlighting this diversity demonstrates a broader, more stable revenue base.

Market Activity

The demand for high-quality ABA practices in Vermont is not just a vague trend. it is backed by clear data. This heightened activity signals a strong seller’s market, but it also means buyers are becoming more sophisticated. They know what to look for, making preparation even more important. Understanding these trends helps you position your practice to attract the best offers.

The Sale Process

Selling your practice is a structured journey, not a single event. It begins long before a buyer is at the table. The first phase is preparation, where you organize your financial records and streamline operations. Many sellers are surprised to learn that buyers often require a professional ‘Quality of Earnings’ or QoE report, which goes much deeper than standard profit and loss statements. The next phase involves confidentially marketing the practice to a curated list of qualified buyers. This leads to the most intensive stage: due diligence. Here, the buyer will examine every aspect of your business, from patient notes and billing procedures to staff contracts. A deal that seems perfect on paper can easily fall apart at this stage if your records are not in order.

Valuation

Determining what your practice is truly worth is the most critical step in the process. It is more art than science, and simple rules of thumb can leave significant money on the table. The valuation process we use for our clients is similar to what a private equity firm would use.

Beyond the Multiple

Sophisticated buyers start with a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your profits by adding back one-time expenses and personal perks, such as a vehicle lease or an above-market owner’s salary. It reflects the true cash flow a new owner could expect.

What Drives Value

The multiple applied to your Adjusted EBITDA depends on several factors. Buyers pay more for practices that are less reliant on a single provider, have a healthy mix of payers, and demonstrate a clear path for future growth. A solo practice may command a lower multiple than a multi-clinician practice with a strong management team.

Post-Sale Considerations

Signing the sale agreement is not the final step. How the deal is structured has major implications for your finances and your legacy. For many owners, a clean break is not the goal. You may want to ensure your staff is cared for and that the clinical quality you established continues. Modern deals can be structured to achieve this, often including an equity rollover component where you retain a minority stake in the new, larger entity. This gives you a “second bite of the apple” when that larger group is sold in the future. Discussing these options early on with an advisor ensures you find a buyer whose vision aligns with yours, protecting both your financial future and the practice you worked so hard to build.