Selling your Speech & Occupational Therapy practice in Portland is a significant decision. The current market holds unique opportunities for owners, but navigating the process requires a clear understanding of your practice’s value, market timing, and the steps involved. This guide provides clarity on the key factors you need to consider, from valuation to post-sale planning, to help you make an informed choice for your future.
Market Overview
The market for healthcare practices is not uniform. Right now, your specialty is in a great position. The broader behavioral health field, particularly pediatric services like integrated speech and occupational therapy, is a focus for healthcare investors. Practices like yours are seen as providing essential, community-based care, which makes them stable and attractive acquisition targets.
In a progressive healthcare hub like Portland, this trend is even more pronounced. Buyers are not just looking for profits. They are seeking well-run practices with strong clinical reputations and a clear path for growth. This high level of interest means more opportunities for sellers, but it also brings more sophisticated buyers to the table. Understanding this landscape is the first step toward a successful sale.
Key Considerations
Beyond the market trends, a sale is a personal journey. The right deal for you depends on what you want for your practice, your staff, and yourself after the transaction.
Defining Your Legacy
For many owners, the practice is more than a business. It’s a professional legacy. A key part of the sale process is defining what you want that legacy to be. Do you want to ensure clinical autonomy is preserved? Are you committed to protecting your team’s culture and roles? Answering these questions early helps identify the right type of partner, ensuring the transition honors the hard work you27ve put in.
Understanding Buyer Types
Not all buyers are the same. Some are private equity firms looking to build a regional platform. Others are larger strategic health systems looking to expand their service lines. Each has a different vision and operational style. Knowing the difference is important. The right partner will align with your goals, whether they involve a full exit or a continued role in the practice.
Market Activity
The high level of interest in speech and occupational therapy practices is translating into real market activity in the Portland area. We are seeing a new wave of buyers, from regional therapy groups to national health platforms, actively seeking to partner with or acquire established practices. This is not a theoretical trend; it is happening now.
This activity creates a competitive environment, which is good news for sellers. When multiple buyers are interested, you have more leverage to negotiate not just the price, but also the terms that matter to you, such as your future role and staff security. However, this window of opportunity won27t last forever. Market conditions can shift. Acting now, even if it27s just to explore your options, positions you to take advantage of the current favorable climate.
Sale Process
Selling your practice follows a structured path. Understanding these steps helps demystify the journey and highlights where preparation is vital. Buyers pay for proven performance, not just potential, so starting this process well before you plan to sell is how you get the best outcome.
- Preparation and Valuation. This is the foundation. It involves organizing your financials, understanding your true profitability (Adjusted EBITDA), and getting a comprehensive valuation to set a realistic price expectation.
- Confidential Marketing. Your advisor confidentially presents the opportunity to a curated list of qualified buyers. This protects your staff and patient relationships while generating competitive interest.
- Negotiation and Due Diligence. After receiving initial offers, you negotiate the key terms. The chosen buyer then conducts a deep dive into your financials and operations. This is where many deals encounter problems if the practice is not properly prepared.
- Closing. Final legal documents are drafted and signed, and the funds are transferred. A clear plan for the transition of ownership is executed.
Valuation
Many owners underestimate their practice’s value because they look at their tax returns. Sophisticated buyers, however, look at your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This metric normalizes for owner-specific expenses to show the true cash flow of the business.
This adjustment can dramatically change your valuation. For a smaller, owner-involved practice, buyers often apply a multiple of 2x to 3.5x Adjusted EBITDA. Here is how that works.
| Financial Item | Amount | Explanation |
|---|---|---|
| Reported Net Profit | $150,000 | The number on your end-of-year statement. |
| Owner Salary Add-Back | +$75,000 | Adjusting an above-market salary. |
| One-Time Legal Fee | +$10,000 | Adding back a non-recurring expense. |
| Adjusted EBITDA | $235,000 | The true profitability for a buyer. |
This adjusted figure is what buyers use to determine your practice’s value. Without this expert analysis, you could leave a significant amount of money on the table.
Post-Sale Considerations
The day your practice sale closes is not the end of the journey. Planning for what comes next is a critical part of a successful transition, ensuring the financial rewards are maximized and your personal goals are met.
Structuring for Tax Efficiency
How your deal is structured has major implications for your after-tax proceeds. An asset sale versus an entity sale, how payments are allocated, and the timing of the transaction can all significantly impact your tax burden. Planning for this with an advisor before you even go to market is one of the most important financial decisions you will make in the entire process.
Planning Your Next Chapter
What do you want to do after the sale? Some owners want a clean break, while others prefer to continue working clinically for a few years without the administrative burden. Deals can be structured with earnouts or ongoing employment agreements. By defining your ideal outcome, we can negotiate a transition plan that aligns with your personal and professional timeline, giving you control over your future.
Frequently Asked Questions
What are the current market trends for selling a Speech & Occupational Therapy practice in Portland, OR?
The market for healthcare practices, especially in pediatric integrated speech and occupational therapy, is very favorable right now in Portland. Buyers are keen on community-based care practices that are well-run, with strong clinical reputations and growth potential. This creates more opportunities and a competitive environment for sellers.
How do I determine the value of my Speech & Occupational Therapy practice before selling?
The value is primarily based on your practice’s Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which provides a normalized picture of cash flow by adjusting for owner-specific expenses. Buyers typically pay a multiple of 2x to 3.5x the Adjusted EBITDA, which often results in a higher valuation than just looking at net profit on tax returns.
What types of buyers should I expect when selling my practice in Portland?
Buyers range from private equity firms aiming to build regional platforms to large strategic health systems wanting to expand their service lines. Each buyer type has different visions and operational styles, so it’s important to find one whose goals align with yours, whether you want a full exit or to retain a role post-sale.
What are the key steps involved in the selling process of my practice?
The selling process includes several structured steps:
- Preparation and Valuation – organizing financials, understanding true profitability, and getting a valuation.
- Confidential Marketing – presenting the opportunity discreetly to qualified buyers to protect staff and patient relationships.
- Negotiation and Due Diligence – negotiating terms and allowing buyer investigation.
- Closing – finalizing legal documents, transferring funds, and executing the ownership transition plan.
What should I consider for post-sale planning after selling my practice?
Post-sale planning is crucial and includes structuring the deal for tax efficiency (asset versus entity sale, payment allocation) and deciding your involvement after the sale. Whether you want a complete break or to continue working under an earnout or employment agreement should be defined early to negotiate a transition that fits your personal and professional goals.