The Houston market for integrated Speech and Occupational Therapy practices is strong. Owners like you are in a unique position. You have built a valuable asset in a growing field. Selling that asset is a major personal and financial decision. This guide offers a clear look at the current landscape, highlighting both the opportunity in the market and the complexity of the process. It is designed to give you the initial insights needed for informed navigation.
Curious about what your practice might be worth in today’s market?
Market Overview
Your practice operates within a thriving national industry. The U.S. speech therapy market is expected to grow at a 7.0% compound annual rate through 2032. At the same time, occupational therapist jobs are projected to increase by 14%. Houston is a hotbed for these services. This creates tremendous opportunity. It also means competition is increasing. Your practice’s integrated model, offering both speech and OT, is a powerful advantage in this crowded market. It allows you to provide comprehensive care that families are actively seeking. This unique positioning, combined with trends like teletherapy, gives you a strong foundation for a successful sale, provided you frame the story correctly for buyers.
Key Considerations for Houston Sellers
When preparing to sell, buyers will look beyond your revenue. They are buying the entire operational engine you have built. Focus on these areas.
Your Integration Advantage
Your practice is not just a speech clinic or an OT clinic. It is both. This integrated model is a powerful selling point. It creates internal referrals and offers a comprehensive solution for patients with conditions like Autism or developmental delays. We help you articulate this synergy to buyers, showing them it is a strategic advantage, not just a service list.
Your Team is an Asset
Buyers are acquiring your talented team of licensed therapists. A tenured, experienced staff ensures continuity of care and is a massive de-risking factor for a new owner. Highlighting your team’s expertise and low turnover is a key part of demonstrating the practice’s stability and value.
Navigating Texas Regulations
Compliance is not negotiable. In Houston, your practice must adhere to the rules of two different state bodies: the Texas Board of Occupational Therapy Examiners (ECPTOTE) and the Texas Department of Licensing and Regulation (TDLR) for speech-language pathologists. Any gaps in licensing or continuing education can become major problems during due diligence.
Your specific goals and timeline should drive your practice transition strategy.
Market Activity & Buyer Interest
The M&A market for therapy practices in Texas is active. We are seeing both strategic buyers and private equity groups show interest in well-run practices. For example, a major player like U.S. Physical Therapy recently acquired a Texas practice with $2.1 million in revenue. At the same time, established independent practices in the Houston area are also coming to market, attracting local and regional buyers looking to expand. These buyers look past the top-line revenue. They dig into your cash flow, specifically your Adjusted EBITDA, to understand the true profitability and potential of your business. This is why having your financials professionally prepared is so important before you ever speak to a potential buyer.
A Look at the Sale Process
Many owners think selling a practice is a single event, but it is a multi-stage process. We find that owners who start preparing 1-2 years before they want to sell achieve the best outcomes. Here is what the process typically looks like.
- Preparation and Valuation. This is the foundation. We work with you to analyze your financials, normalize your earnings, and establish a clear, defensible valuation. This is where we uncover opportunities to increase value before going to market.
- Confidential Marketing. We do not just “list” your practice. We create a detailed confidential memorandum and discreetly approach a curated list of qualified buyers from our proprietary database. This protects your confidentiality and creates a competitive environment.
- Navigating Due Diligence. This is the most intensive phase. Buyers will scrutinize every aspect of your practice, from financials to regulatory compliance. Proper preparation here is critical to prevent surprises that can derail a deal.
- Closing and Transition. Once a deal is negotiated, we manage the legal process toward a successful close. We also help you structure a smooth transition plan that protects your staff and ensures continuity for the patients you have served.
Preparing properly for buyer due diligence can prevent unexpected issues.
How Your Practice is Valued
You may have heard that therapy practices sell for a multiple of revenue. While that can provide a rough benchmark, sophisticated buyers value your practice based on its cash flow, or Adjusted EBITDA. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. “Adjusted” is the key part. It means we add back expenses that a new owner would not incur, like your personal car lease or an above-market salary. This shows the true earning power of the practice.
For example, see how adjustments can increase value:
| Metric | Amount | Explanation |
|---|---|---|
| Reported Profit | $200,000 | The bottom line on your P&L. |
| Owner Salary Add-Back | +$75,000 | Adjusting your |
| $150k salary to a market-rate $75k. | ||
| One-Time Legal Fee | +$10,000 | A non-recurring expense. |
| Adjusted EBITDA | $285,000 | The true cash flow a buyer is purchasing. |
This higher Adjusted EBITDA figure, not the reported profit, is what buyers will apply a multiple to. Getting this number right is the foundation of a successful sale.
Valuation multiples vary significantly based on specialty, location, and profitability.
Planning for Life After the Sale
The final sale price is just one part of the equation. Your final outcome depends heavily on the structure of the deal. Will a portion of your payment be tied to future performance in an earnout? Do you want to retain a stake in the new, larger company through an equity rollover? Many owners are concerned about losing control. We specialize in finding partners and structuring deals that can preserve your clinical autonomy and protect your role. Your legacy and your team’s future are also important. A well-designed transition plan ensures the culture you built is respected. These are not afterthoughts. They are critical strategic decisions that should be planned from the start to align the sale with your personal and financial goals.
The right exit approach depends on your personal and financial objectives.
Frequently Asked Questions
What makes an integrated Speech and Occupational Therapy practice in Houston valuable to buyers?
The integrated model offering both speech and occupational therapy creates internal referrals and provides a comprehensive care solution that families seek. This synergy is seen as a strategic advantage, not just a service list, especially in a competitive Houston market.
How should I prepare my practice’s financials before selling?
Buyers focus on the Adjusted EBITDA, which reflects the true earning power by adding back one-time or non-operational expenses. It’s crucial to have your financials professionally prepared to showcase profitability and maximize valuation.
What regulatory compliance must I ensure before selling my integrated therapy practice in Houston?
Your practice must comply with the Texas Board of Occupational Therapy Examiners (ECPTOTE) and the Texas Department of Licensing and Regulation (TDLR) for speech-language pathologists. Any licensing or continuing education gaps can cause major issues during due diligence.
What does the sale process of a therapy practice in Houston typically involve?
The sale process involves: 1) Preparation and Valuation, 2) Confidential Marketing to a curated list of buyers, 3) Navigating an intensive due diligence phase, and 4) Closing and Transition which includes legal processing and transition planning.
How can I plan for life after selling my Speech & Occupational Therapy practice?
Consider the structure of the deal, such as earnouts or equity rollovers, to align with your personal and financial goals. Planning early for clinical autonomy, team culture, and your legacy ensures a smooth transition and continued success.