Guide to Selling a Sports Medicine & Performance Therapy Practice in Richmond, VA

Selling your Sports Medicine & Performance Therapy practice is one of the most significant financial decisions you’ll ever make. For practice owners in Richmond, VA, the current market presents unique opportunities, but capturing them requires a deep understanding of market dynamics, valuation, and strategic preparation. This guide provides a clear overview of the landscape, helping you navigate the path from consideration to a successful closing that honors your legacy and maximizes your return.

Curious about what your practice might be worth in today’s market?

Market Overview

The national outlook for practices like yours is strong. The U.S. physical therapy market, a close cousin to performance therapy, is valued at nearly $50 billion and is projected to grow steadily. This national momentum creates a favorable environment for sellers everywhere, including right here in Richmond.

National Momentum

A projected compound annual growth rate of 4.6% through 2030 signals continued demand for physical and performance therapy services. An aging population, active lifestyles, and a greater focus on non-invasive treatment are all contributing to this growth. This makes established practices with strong patient relationships attractive targets for a growing pool of buyers.

The Richmond Opportunity

While specific M&A data for sports medicine practices in Richmond isn’t widely published, we see the positive national trends reflected locally. The area has a vibrant, active community, and we’ve observed healthcare consolidation, like Bon Secours’ acquisition of Tuckahoe Orthopaedics, which indicates a healthy and active transaction market. For a well-run practice, this environment means that sophisticated buyers are looking for opportunities in the Richmond metro area. The key is knowing how to find them and how to position your practice to stand out.

Key Considerations for a Successful Sale

When a potential buyer looks at your Sports Medicine & Performance Therapy practice, they see more than just a clinic. They are evaluating a business. To get the best possible outcome, you need to think like a buyer and prepare accordingly. Here are the top three areas they will scrutinize:

1. Demonstrable Financial Health
   Buyers want to see clean, clear financials that show consistent revenue, healthy profit margins, and a diverse patient or payer mix. This isn’t just about your tax returns. It’s about presenting your financial story in a way that highlights stability and growth potential. Many owners we work with are surprised to learn their practice is worth more than they think once we normalize their expenses.

2. A Strong, Transferable Reputation
   Your practice’s reputation in the Richmond community is a significant asset. This is demonstrated through patient testimonials, strong physician referral relationships, and a consistent flow of new clients. Buyers pay a premium for a business where the goodwill isn’t tied solely to you as the owner but is embedded in the practice itself.

3. Operational Efficiency
   A practice that runs smoothly without your constant oversight is immensely valuable. This includes having well-documented procedures, a capable team, and efficient patient scheduling and billing systems. It proves to a buyer that the practice is a well-oiled machine they can step into, not a project they have to fix.

Proper preparation before selling can significantly increase your final practice value.

Market Activity in Richmond

The market for physician practices is more dynamic than it has been in years. There is a renewed sense of optimism, and new types of buyers have entered the field, creating more opportunities for owners looking to sell. Understanding who these buyers are is the first step toward finding the right partner for your practice’s future.

Private equity firms and larger strategic health systems are increasingly active in acquiring practices. They are drawn to the consistent growth in the sports medicine and therapy sector. We are also seeing successful local and regional practices looking to expand their footprint by acquiring smaller clinics. Each buyer has a different motivation, which impacts the type of deal they offer and the valuation they are willing to pay.

Timing your practice sale correctly can be the difference between average and premium valuations.

The Sale Process Simplified

Many owners think selling a practice is like selling a house. You list it and wait for offers. In reality, a successful M&A process is a structured, proactive effort designed to create a competitive environment that maximizes value and minimizes disruption. It’s a journey with several distinct stages.

A common concern we hear is from owners who say, “I’m not ready to sell for 2-3 years.” That is exactly the right time to start planning. The highest valuations go to practices that are prepared, not the ones that rush to market. The process generally follows four key phases:

1. Preparation and Valuation
   This is the foundation. It involves getting your financials in order, understanding your practice’s true market value, and crafting the story that highlights its strengths.

2. Confidential Marketing
   Your practice is marketed confidentially to a curated list of qualified buyers. We don’t just “list” your practice; we run a discreet and professional process to generate interest from the right kind of partners.

3. Negotiation and Structuring
   This phase involves managing offers, negotiating key terms beyond just the price, and structuring a deal that meets your financial and personal goals.

4. Due Diligence and Closing
   This is the final hurdle where the buyer verifies all the information about your practice. Proper preparation upfront makes this stage go smoothly, preventing surprises that could derail a deal at the last minute.

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

Understanding Your Practice’s True Value

How much is your practice worth? The answer is more complex than a simple multiple of revenue. Sophisticated buyers value your practice based on its Adjusted EBITDA–Earnings Before Interest, Taxes, Depreciation, and Amortization.

The Power of Adjusted EBITDA

Think of Adjusted EBITDA as your practice’s true cash flow. We start with your stated net income and add back things like taxes, interest, and non-cash expenses. Then, we “normalize” the financials by adjusting for any one-time expenses or owner-related perks that won’t continue under a new owner, like a vehicle lease or an above-market salary. For many practices, the Adjusted EBITDA is significantly higher than the net income on their tax return.

Finding Your Multiple

This Adjusted EBITDA figure is then multiplied by a number–the “multiple.” This multiple isn’t arbitrary. It’s determined by factors like your practice’s size, your reliance on a single provider, your growth history, and current market demand for practices in your specialty and location. A multi-provider practice in a growing market like Richmond will command a higher multiple than a smaller, single-provider clinic. It9s this combination of math and market insight that reveals what buyers are truly willing to pay.

Valuation multiples vary significantly based on specialty, location, and profitability.

Planning for Life After the Sale

A successful transaction isn’t just about the final sale price. It’s about ensuring the deal structure supports your goals for the future, protects your team, and preserves your legacy in the Richmond community. Many owners mistakenly believe they have to give up all control, but that’s often not the case.

Thinking about what comes next is a critical part of the process. Answering these questions early will help you find the right partner and structure the right deal.

1. What is Your Future Role?
   Do you want to walk away completely at closing, or would you prefer to stay on for a few years, focusing only on patient care without the headaches of management? There are deal structures that can accommodate either path.

2. How Will You Protect Your Legacy and Staff?
   Finding a buyer whose culture aligns with yours is crucial for a smooth transition. The right partner will see your dedicated team as a major asset and will be committed to their continued success.

3. How Can You Maximize Your After-Tax Proceeds?
   The way a deal is structured as an asset sale or an entity sale has massive tax implications. Planning ahead with an expert can significantly increase the amount of money you actually take home. Options like equity rollovers, where you retain a stake in the new, larger company, can also provide a “second bite at the apple” for even greater financial upside down the road.

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