Selling your integrated speech and occupational therapy practice is a significant decision. For owners in Boise, Idaho, the current market presents a unique blend of local opportunity and national growth. This guide provides an overview of the landscape, key considerations for a successful sale, and the importance of navigating the process with a clear strategy. Success requires more than just finding a buyer. It means understanding your practice’s true value and preparing for the transition.
Market Overview
The demand for therapy services is strong. This creates a favorable environment for practice owners who are considering a sale. The market is supported by powerful trends at both the national and local levels.
A Growing National Demand
The therapy sector is expanding significantly. The US occupational and physical therapy market was valued at over $59 billion in 2024, with the speech therapy market alone projected to reach over $18 billion by 2032. This national growth fuels buyer interest and creates a competitive landscape, which is good news for sellers.
The Boise Advantage
Locally, Boise shows strong vital signs for a healthy practice. The active job market, with dozens of recent postings for both speech and occupational therapists, indicates a solid talent pool to support a new owner’s staffing needs. This local workforce stability is a key selling point for any buyer looking to acquire a practice in the Treasure Valley.
Key Considerations When Selling
Thinking about the market is one thing. Preparing your practice is another. A smooth transaction depends on addressing key concerns long before a buyer ever sees your financials. Confidentiality is critical. You need a process that protects your relationships with staff and patients from the disruption that rumors of a sale can cause. Just as important are clear strategies for retaining your key therapists and loyal clients through the transition. This stability is a major component of your practice’s value and provides a buyer with the confidence to move forward.
Market Activity in Boise
You might be wondering what similar practices in Boise have sold for recently. The truth is, specific transaction data for private therapy practices is confidential and rarely made public. This lack of direct local “comps” means buyers will shift their focus from market averages to the specific strengths of your individual practice.
Here are three things buyers focus on when public data is scarce:
- Verifiable Financials: Buyers will scrutinize your revenue, expenses, and profitability over the last several years. Clean, organized financial records are not just helpful. They are a requirement.
- Operational Strength: A practice with established processes, diverse referral sources, and a strong, non-owner-dependent team is far more attractive. It demonstrates the business can thrive after you are gone.
- Growth Potential: Buyers purchase the future, not just the past. Highlighting clear avenues for growth, like adding new services or expanding referral networks, can significantly increase interest and value.
The Sale Process
Selling your practice follows a structured path. It begins with preparation, where you organize your financial and operational documents. This is the most important step and often starts years before a potential sale. Next comes a formal valuation to establish a credible asking price. Once prepared, a confidential marketing process begins, targeting a curated list of qualified buyers. The most intensive phase is due diligence, where the buyer verifies all aspects of your practice. This is where many deals encounter challenges if the initial preparation was not thorough. The process concludes with a negotiated purchase agreement and the final closing.
Understanding Your Practice’s Value
How is a therapy practice actually valued? While many owners hear about simple multiples of revenue, sophisticated buyers look deeper. The starting point for a professional valuation is your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure normalizes your profit by adding back one-time expenses or personal owner perks to show the true cash flow of the business. This Adjusted EBITDA is then multiplied by a specific number, or “multiple,” to determine the enterprise value. The multiple itself is not random. It is influenced by several key factors.
| Factor | Why It Matters to a Buyer |
|---|---|
| Provider Reliance | Practices that do not depend solely on the owner command higher multiples. |
| Size & Profitability | Higher profit margins and larger scale reduce perceived risk and increase value. |
| Referral Sources | A diverse and stable base of referrals suggests predictable future revenue. |
| Staff & Culture | An experienced team and a positive work environment are valuable, intangible assets. |
Life After the Sale
The moment the deal closes is not the end of the story. Your sale agreement will almost certainly include a transition period where you help the new owner. Planning for this is key. You should also consider how the deal is structured. It may include an earnout, where a portion of the sale price is tied to future performance, or rollover equity, where you retain a minority stake in the new, larger entity. These structures have major implications for your final take-home proceeds and tax burden. Protecting your legacy and ensuring your team is in good hands requires thinking about these post-sale details from the very beginning.
Frequently Asked Questions
What is the current market outlook for selling a Speech & Occupational Therapy practice in Boise, ID?
The market in Boise is favorable due to a strong local demand and a growing national therapy sector. Boise has a stable workforce with a good talent pool for speech and occupational therapists, making it an attractive area for buyers.
What are the key factors buyers consider when valuing a Speech & Occupational Therapy practice?
Buyers focus on verifiable financials, operational strength, and growth potential. They value practices that are not owner-dependent, have diverse referral sources, and clear avenues for future growth. The valuation often starts with Adjusted EBITDA and applies a multiple based on provider reliance, size, profitability, referral sources, and staff culture.
What steps should I take to prepare my therapy practice for sale?
Preparation includes organizing financial and operational documents, maintaining confidentiality to protect relationships, and developing strategies to retain key therapists and clients during transition. Early preparation, sometimes years in advance, is critical for a smooth transaction.
What does the sale process of a Speech & Occupational Therapy practice involve?
The process starts with preparation and valuation, followed by confidential marketing to qualified buyers. The most intensive phase is due diligence, where buyers verify all aspects of the practice. The sale concludes with negotiation and closing of the purchase agreement.
What should I consider about life after selling my practice?
Plan for a transition period to assist the new owner and consider deal structures like earnouts or rollover equity which affect your proceeds and tax implications. Protecting your staff and legacy during this period is important for a successful handover.