Guide to Selling a Speech & Occupational Therapy Integration Practice in Oregon

A Guide to Navigating the Market and Maximizing Your Value

Selling your Speech and Occupational Therapy practice in Oregon presents a significant opportunity. The state’s healthcare sector is growing rapidly, creating strong buyer demand for well-run therapy practices like yours. However, turning this market potential into a successful sale requires careful planning and a deep understanding of the process. Timing your practice sale correctly can be the difference between average and premium valuations. This guide provides the initial insights you need to start navigating your transition with confidence.

A Market Primed for Growth

The timing for considering a sale in Oregon could not be better. The state’s healthcare landscape is expanding, with a specific and growing appetite for therapy services. This isn’t just a general trend. It is backed by strong indicators that make an integrated ST/OT practice a highly sought-after asset. Buyers are not just looking for a stable business. They are looking for a platform for growth.

Consider the demand built into the Oregon market:
1. High Projected Job Growth: Employment for speech-language pathologists is expected to grow by 18% and occupational therapists by 11% over the next decade.
2. Statewide Need: Nearly 40% of Oregon counties report a shortage of allied therapists. This is a significant finding that signals to buyers a clear path for expansion.
3. Untapped Potential: This demand, especially in rural areas, means a new owner can immediately implement growth strategies like telehealth or satellite clinics, increasing your practice’s value proposition.

What Makes Your Practice Truly Valuable?

Beyond the strong market, a buyer’s interest depends on the unique strengths of your specific practice. The financial statements tell one part of the story. The other part is told through your operations, your team, and your reputation. Thinking through these points now is the first step in preparing for a successful sale.

How Strong is Your Integration?

Your practice isn’t just a speech clinic next to an occupational therapy clinic. It’s an integrated model. This is a key selling point. Buyers value the collaborative care approach, as it leads to better patient outcomes and creates a stickier patient base. Be prepared to explain how your therapists collaborate and how this benefits patients and your bottom line.

Who Are Your Referral Partners?

A diversified and loyal referral base is one of the most valuable intangible assets you own. Documenting your key referral sources from schools, pediatricians, and local hospitals demonstrates the stability and predictability of your revenue. This reduces the perceived risk for a buyer.

What is Your Team’s Story?

An experienced, dedicated team is a massive asset. The qualifications and loyalty of your staff signal a healthy practice culture and ensure continuity of care after the sale. High staff turnover is a red flag for buyers. A stable team is a green light.

Your legacy and staff deserve protection during the transition to new ownership.

Understanding Today’s Buyers

The demand for therapy practices in Oregon has attracted a wide range of potential buyers. It is important to know that not all buyers are created equal. Each type comes with different resources, goals, and visions for your practice’s future. Running a process that creates competitive tension among these groups is the best way to ensure you receive the highest and best offer. Simply taking the first offer that comes along often leaves money on the table.

Here is a look at the typical buyers in the market:

Notably, Oregon is increasing its scrutiny of healthcare transactions, especially those involving private equity. Navigating this regulatory layer requires expertise to ensure your deal is structured properly and closes smoothly.

What Does the Sale Process Involve?

Many owners think selling a practice is a single event, but it is a multi-stage process that typically takes six to twelve months from start to finish. Being prepared for each stage is the key to a smooth transaction and a premium outcome. An organized process is not more work. It is less work because it prevents surprises and costly delays down the line.

While every sale is unique, most follow a clear path:
1. Preparation Phase: This is where we work with owners to understand their goals, organize financial records, and build the story that will attract the right buyers. This happens long before your practice is shown to anyone.
2. Marketing Phase: We confidentially market the opportunity to a curated list of qualified buyers, managing all communication to protect your privacy and save you time.
3. Negotiation Phase: We solicit and compare offers, helping you negotiate not just the price but also the terms that are critical for your future, like your transition role and the impact on your staff.
4. Due Diligence & Closing: The buyer conducts a deep review of your practice. This is where most deals fall apart. We help you prepare for this so you can sail through due diligence to a successful closing.

The due diligence process is where many practice sales encounter unexpected challenges.

How Much is Your Practice Worth?

This is the first question every owner asks. While you may have heard “rules of thumb,” like a practice being worth a multiple of its revenue, these are often misleading and can cause you to severely underprice your life’s work. Sophisticated buyers don’t use these simple formulas. They use a much more detailed approach to find the true value.

Beyond the ‘Rules of Thumb’

The therapy space often sees valuation multiples from 0.5x to 2.5x annual revenue or 2.6x to 3.6x of earnings (EBITDA). However, these are wide ranges. Your practice’s specific value depends on factors like your payer mix, your location, your growth opportunities, and your reliance on the owner. A professional valuation process moves beyond generic ranges to pinpoint a defensible price that the market will support.

The Most Important Metric: Adjusted EBITDA

Serious buyers value your practice based on its true cash flow, or what we call Adjusted EBITDA. This starts with your net income and then adds back interest, taxes, depreciation, and amortization. More importantly, it also adds back owner-specific expenses that won’t continue after the sale, like a vehicle lease run through the business or an above-market owner’s salary. We find that most owners don’t realize how profitable their practice truly is until we complete this analysis. This single step can often increase a practice’s valuation significantly.

A comprehensive valuation is the foundation of a successful practice transition strategy.

Planning for Life After the Sale

The final sale price is important, but the terms of the deal will define your transition and your future. A successful exit plan looks beyond the closing date to ensure a smooth handover for your patients, your staff, and yourself. Thinking about these elements beforehand gives you more control over the outcome. This is where you can protect the culture you have built.

Here are a few key areas to consider for your post-sale plan:

1. Your Transition Role: Buyers will almost always want you to stay on for a period to help transition relationships with patients and referral sources. The length and intensity of this role are key negotiating points.
2. Protecting Your Team: The future of your staff is a major concern for most owners. The terms of the sale can include protections for your team, ensuring they have a secure and positive future with the new owner.
3. The “Second Bite of the Apple”: In many deals, especially with private equity, you may have the option to “roll over” a portion of your sale proceeds into equity in the new, larger company. This means you get cash at close while also sharing in the future success of the company, which can lead to a second, often larger, payday down the road.

Structuring your sale is not a one-size-fits-all process. The right approach depends entirely on your personal and financial goals.

The right exit approach depends on your personal and financial objectives.