Selling your integrated Speech and Occupational Therapy practice is one of the most significant financial decisions you will make. The Atlanta market presents unique opportunities, but realizing your practice’s full value requires careful preparation and a strategic plan. This guide provides a clear overview of the process, from understanding your practice’s worth to navigating the final sale, helping you prepare for your next chapter.
Market Overview
The Atlanta market for pediatric and adult therapy services is strong. A growing population and increased awareness of developmental needs create consistent demand. Your integrated Speech and Occupational Therapy model is particularly attractive. It demonstrates a holistic approach to care and provides multiple revenue streams, which sophisticated buyers look for. You’ll find a diverse pool of potential buyers in Atlanta, from local multi-site therapy groups looking to expand their footprint to private equity-backed platforms seeking established practices. This competitive environment means that a practice with a strong reputation, clean financials, and a clear growth story is in a prime position to command a premium valuation. Your deep roots in the community are a significant asset.
Key Considerations for Atlanta Practice Owners
Before you even think about listing your practice, a thorough internal review can dramatically increase its value and the smoothness of the sale. Buyers pay for proven performance, not just potential. Starting this process 2-3 years before your target exit date is ideal.
Your Financials
A buyer will scrutinize your numbers. You should have three to five years of clean financial statements, including Profit & Loss (P&L) statements and tax returns. We often help owners “normalize” their financials by adjusting for personal expenses run through the business or one-time costs. This process reveals your practice’s true profitability, or Adjusted EBITDA, which is the foundation of your valuation.
Your Operations and Location
Is your practice’s location secure? A long-term, transferable lease is a major asset. If you own the building, deciding whether to sell it with the practice or lease it to the new owner is a key strategic choice. Also, consider your team. Having well-trained, long-term employees with clear contracts can significantly enhance your practice’s value. Documenting your patient referral sources and online reputation also provides buyers with confidence in future revenue.
The Sale Process
Selling a practice isn’t like selling a house. We dont just put a sign out front. The process is confidential and highly structured to protect your legacy and maximize your outcome. It generally follows four phases. First is preparation, where we work with you to organize your financials and craft a compelling growth story. Second, we identify and discreetly approach a curated list of qualified buyers. Third is due diligence, where the buyer verifies all the information about your practice. This is often the most intense phase, and proper preparation is key to preventing surprises. Finally, we negotiate the definitive agreements and move to closing. A critical decision here is whether to structure the transaction as an asset sale or an entity sale, a choice with significant tax and liability implications.
How Your Practice is Valued
Many owners mistakenly believe their practice is worth a simple multiple of its revenue. Today, sophisticated buyers value your practice based on its cash flow, specifically its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). We calculate this by taking your net income and adding back items like your salary (if it’s above market rate), personal expenses, and other one-time costs. This number represents the practice’s true earning potential for a new owner.
This Adjusted EBITDA is then multiplied by a numberthe “multiple”to determine the Enterprise Value. The multiple isn’t random. It is influenced by risk and growth potential. For a Speech & OT practice in Atlanta, buyers will pay a higher multiple for certain attributes.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Reliance | Dependent on owner for all patients | Associate-driven with a diverse team |
| Payer Mix | Primarily Medicaid with low margins | Strong mix of private insurance & cash-pay |
| Referral Sources | Relies on a single pediatrician | Diversified referrals from schools, clinics, a& web |
| Growth | Stable but flat revenue | Documented history of year-over-year growth |
An expert valuation doesn’t just give you a number. It tells a story about your practice’s strengths and frames it to attract the best possible offers.
Life After the Sale
The final signature on the sale agreement is not the end of the story. It is the beginning of a new chapter for you, your team, and your patients. Thinking through your post-sale role is a critical part of the negotiation. Do you want to stay on for a transition period of 6-12 months to ensure a smooth hand-off? Or perhaps you’d prefer to work as a part-time therapist without the burdens of ownership? Many buyers value this continued involvement as it reduces patient attrition and provides stability. These arrangements, along with the terms of your non-compete agreement and the plan for your staff, must be clearly defined in the sale contract. Protecting your team and your legacy is a key focus of a well-managed transition.
Frequently Asked Questions
What makes the Atlanta market attractive for selling an integrated Speech and Occupational Therapy practice?
The Atlanta market is strong due to a growing population and increased awareness of developmental needs, creating consistent demand. Practices with a holistic care approach and multiple revenue streams are especially attractive to buyers, including local multi-site groups and private equity-backed platforms.
How far in advance should I prepare my practice financially before selling?
It’s ideal to start preparing 2-3 years before your target exit date. This preparation includes organizing 3-5 years of clean financial statements, normalizing these financials to reveal true profitability, and ensuring a clear and compelling growth story to attract buyers.
What operational factors can increase the value of my Speech and Occupational Therapy practice?
Key factors include having a secure, long-term, transferable lease or owning the building with a strategic plan for it, maintaining well-trained and long-term employees with clear contracts, and documenting patient referral sources and online reputation to assure buyers of future revenue stability.
How is my practice’s value determined?
Valuation is based on Adjusted EBITDA, which is net income adjusted by adding back non-operational expenses like owner’s salary above market rate, personal expenses, and one-time costs. This number is multiplied by a multiple influenced by factors like provider reliance, payer mix, referral sources, and growth potential.
What considerations should I make about my role after selling my practice?
Post-sale, consider whether you want to stay on for a transition period of 6-12 months or work part-time to ensure a smooth handoff. Buyers value this continued involvement as it reduces patient attrition and provides stability. Terms about your post-sale role, non-compete agreements, and staff plans should be clearly defined in the sale contract.
