Selling your Nebraska-based Speech and Occupational Therapy practice is one of the most significant financial decisions you will ever make. This guide offers key insights into the current market, valuation principles, and the steps involved in a successful transition. Understanding this landscape is the first step toward realizing the full value of the business you have worked so hard to build. We can help you navigate what comes next.
Nebraska’s Market for Therapy Practices
If you are a practice owner in Nebraska, the market is on your side. Demand for both speech and occupational therapy is strong and getting stronger. Nationally, the need for Speech-Language Pathologists is expected to grow 18% over the next decade. The outlook is just as bright locally. Nebraska is projected to see an 18% increase in demand for Occupational Therapists by 2030.
This growth is fueled by an aging population and a greater awareness of developmental needs in children. For practice owners, this translates into a robust and attractive market for potential buyers. Both strategic acquirers and private equity groups are actively looking for well-run practices. Your integrated model, combining both speech and OT, makes your business particularly valuable in this environment.
Key Considerations for a Practice Sale
A strong market is a great starting point. However, a successful sale depends on navigating the details unique to your practice.
Payer Contracts
Your relationships with insurance payers are a core asset. Buyers will scrutinize the transferability of these contracts. A potential issue with a key payer can significantly impact your practice’s valuation. It is important to understand the specific assignment clauses in your agreements well before you go to market.
Staff and Client Transition
Buyers are not just acquiring your equipment. They are acquiring your team’s expertise and your clients’ loyalty. A clear plan for how staff will be retained and how client care will continue without interruption is not just a detail. It is a central part of protecting your practice’s value and legacy through the sale.
Nebraska Regulatory Compliance
Your practice must be in full compliance with all regulations from the Nebraska Department of Health and Human Services. This includes rules under the Uniform Credentialing Act. Buyers and their lenders will conduct thorough due diligence. Any compliance gaps can cause significant delays or even terminate a deal.
Navigating Market Activity
You will not find much public information on what Speech and OT practices in Nebraska have recently sold for. This is normal. The sales of privately held businesses are almost always confidential. This information gap can be a major challenge for owners. It is difficult to know if an unsolicited offer is fair, and it is hard to know who the best buyers might be.
This is why we do not simply “list” your practice. We run a confidential, professional process designed to create a competitive market for your business. By leveraging our private database of qualified buyers from larger therapy groups to private equity we generate multiple offers. This competitive tension is what ensures you are seeing the true market value for your practice, not just what a single buyer thinks it is worth.
The Right Way to Approach a Sale
A successful sale is not an event. It is a process. Many owners think about selling only when they are ready to retire, but the preparation should start 2-3 years in advance. Buyers pay for proven performance, not future potential. Starting early allows you to sell on your terms. Here are the key phases of a well-planned sale.
- Optimize Your Practice. Before a sale, we look at operations to ensure they are efficient and profitable. This includes everything from billing codes to staffing models.
- Organize Your Financials. Buyers require spotless financial records. We help you prepare clean income statements, balance sheets, and tax returns that will stand up to due diligence.
- Build the Buyer Strategy. We help you consider the ideal buyer. Is it an individual therapist, a regional therapy group, or a private equity-backed platform? The right buyer depends on your goals for legacy, staff, and finances.
- Maintain Confidentiality. A rumor that your practice is for sale can unsettle staff and clients. A confidential process, managed by an advisor, is critical to protecting your business during this period.
- Determine Your Value. Once your practice is ready, a comprehensive valuation sets the foundation for a successful negotiation.
What Is Your Practice Really Worth?
Many owners hear about practices selling for a multiple of their annual revenue, often between 0.5x and 2.5x for therapy practices. This is a very rough guideline. Sophisticated buyers look deeper. They value your practice based on a multiple of its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).
Adjusted EBITDA represents your practice’s true cash flow. We find it by taking your stated profit and adding back things like your personal auto lease, excess owner salary, or other one-time expenses. Most practices are more profitable than they look on paper. Uncovering this hidden value is the single most important step in a valuation. From there, the multiple applied depends on factors like your staff’s expertise, client mix, and growth potential. A proper valuation is the foundation of a successful sale strategy.
Planning for Life After the Sale
Your focus is rightly on the transaction itself. But planning for what happens the day after the deal closes is just as important. These terms are negotiated as part of the sale and have major implications for your future. Thinking about them early gives you more control over the outcome.
| Consideration | Why It Matters |
|---|---|
| Non-Compete Agreements | Buyers will require a non-compete clause. The length of time and geographic scope are negotiable. You need to ensure the terms are reasonable and do not unfairly limit your future opportunities. |
| Your Future Role | Do you want to leave immediately, or stay on for a transition period? Many deals require the seller to continue working for 1-3 years. Your compensation and role during this time are key negotiating points. |
| Staff & Legacy Protection | The right deal structure can include protections and incentives for your key staff. This ensures a smooth transition for clients and protects the culture you built. |
Structuring your exit is about more than just the final price. It is about setting up your next chapter for success. Protecting your team and your legacy requires a thoughtful approach to the transition plan.
Frequently Asked Questions
What is the current market outlook for Speech and Occupational Therapy practices in Nebraska?
The demand for both speech and occupational therapy in Nebraska is strong and expected to grow. Nationally, the need for Speech-Language Pathologists is projected to increase by 18% over the next decade, with a similar 18% growth expected locally for Occupational Therapists by 2030. This growth is driven by an aging population and increased awareness of developmental needs in children, making it an attractive market for buyers.
What are the key factors that can impact the valuation of my Nebraska Therapy practice during a sale?
Key factors include your payer contracts, which buyers will scrutinize for transferability; staff and client retention plans to ensure continuity; and full compliance with Nebraska Department of Health and Human Services regulations. Any issues in these areas can affect valuation or delay/terminate the sale process.
How should I prepare my practice financially before selling?
It’s important to organize your financials meticulously. Buyers require clean income statements, balance sheets, and tax returns that can withstand thorough due diligence. Adjusted EBITDA‚Äîyour practice‚Äôs true cash flow after adding back certain expenses‚Äîis critical in determining your practice’s true value.
What is the typical valuation method used for Nebraska Speech & Occupational Therapy practices?
Practices are usually valued based on a multiple of their Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), rather than just annual revenue. Multiples generally range between 0.5x to 2.5x annual revenue, but deeper financial analysis including staff expertise and client mix affects the final valuation.
What should I consider for life after selling my therapy practice?
Key considerations include negotiating reasonable non-compete agreements regarding time and geographic scope; deciding on your future role—whether to leave immediately or stay on for a transition period of 1-3 years; and protecting your staff and legacy by including protections and incentives in the sale agreement to ensure a smooth transition for clients.