Selling your Seattle-based Sports Medicine & Performance Therapy practice is a major decision. The market is strong, driven by an active population and growing investor interest. A successful sale, however, depends on more than just good timing. It requires a clear understanding of your practice’s value and a structured plan. This guide provides a look at the current landscape, from valuation to post-sale planning, to help you navigate the path forward.
Not sure if selling is right for you?
Market Overview
The outlook for selling a physical therapy or sports medicine practice is very positive, both nationally and here in the Pacific Northwest. Seattle’s vibrant, sports-focused culture provides a consistent demand for performance and rehabilitation services. This local enthusiasm is supported by powerful national trends that make your practice an attractive asset for buyers.
Key market drivers include:
- National Industry Growth. The U.S. physical therapy market is projected to grow from around $49 billion to over $61 billion by 2030. This steady expansion signals a healthy and stable industry for investors.
- Surging Demand. The need for physical therapist services is expected to grow by nearly 15% by 2037, outpacing general population growth and ensuring a robust patient pipeline for years to come.
- A Thriving Local Scene. Seattle is a hub for athletes of all levels. This creates a durable, high-demand environment for specialized sports medicine and performance therapy services.
Key Considerations
While the market is favorable, buyers look for more than just a good location. They invest in well-run businesses with a clear path to future growth. Before you even think about putting your practice on the market, it is important to consider your practice’s story. What makes it unique? Successful sellers are those who can clearly articulate their value, highlighting strengths like niche specializations in certain sports, a sterling local reputation built on patient outcomes, or established referral networks with local teams and physicians. Thinking about your exit, even if it is two or three years away, gives you time to strengthen these areas and prepare a narrative that will achieve a premium valuation.
Market Activity
The Seattle market is not just growing; it is active. We are seeing a significant increase in acquisitions, particularly from private equity firms and larger strategic partners looking to expand their footprint in the region. Recent local deals, like Golden Bear Therapy Partners acquiring Seattle Hill Physical Therapy, show that buyers are actively investing here. This creates a competitive environment for sellers, but it also means you will likely be negotiating with sophisticated organizations. Understanding the different types of buyers and their goals is critical.
| Buyer Type | Primary Focus | What This Means for You |
|---|---|---|
| Strategic/Corporate Buyers | Market expansion, operational efficiency | May integrate your practice into their existing brand and systems. |
| Private Equity Groups | Growth potential, building a platform | Often seek partnership, providing capital for expansion while you retain a role. |
| Local Competitors | Acquiring patient base and talent | A straightforward way to sell, but may not always yield the highest value. |
Sale Process
A successful sale is not an event; it is a managed process. It typically begins long before the first conversation with a buyer, starting with a comprehensive valuation and preparation of your financial and operational documents. From there, the process moves into a confidential marketing phase, where potential buyers are vetted before receiving information about your practice. After initial offers are received, the process moves to due diligence. This is an intense review of your financials, contracts, and operations, and it is where many unprepared sellers run into trouble. Confidentiality is key throughout every stage to protect your relationships with staff, patients, and referrers until a deal is finalized.
Valuation
One of the first questions any owner asks is, “What is my practice worth?” The answer is more complex than a simple revenue formula. Professional buyers determine value based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true cash flow by adding back personal expenses or one-time costs. That Adjusted EBITDA is then multiplied by a specific number (a “multiple”) to reach your practice’s enterprise value.
That multiple is not random. It is influenced by several key factors:
- Scale & Profitability. Larger practices with higher EBITDA generally command higher multiples.
- Provider Reliance. A practice that can run successfully without the owner’s daily presence is less risky and more valuable.
- Growth Story. Demonstrating consistent growth and a clear plan for the future fetches premium multiples.
- Payer Mix. A healthy balance of insurance, personal injury, and cash-pay patients signals stability.
- Clinical Specialization. Unique, in-demand services can increase your practice’s strategic value to a buyer.
Post-Sale Considerations
Finalizing the sale is not the end of the journey. In fact, some of the most important decisions are about what happens after the closing date. Do you want a clean break, or would you prefer to stay on for a transition period or even continue practicing? Many modern deal structures are flexible, allowing you to design your exit. You might negotiate an earnout, giving you a share of future profits, or roll a portion of your sale proceeds into the new company as equity. This “second bite at the apple” can lead to another significant payday down the road. Planning for these post-sale scenarios is critical to protecting your legacy, ensuring a smooth transition for your team, and aligning the deal with your personal financial goals.
Every practice sale has unique considerations that require personalized guidance.
Frequently Asked Questions
What is the current market outlook for selling a Sports Medicine & Performance Therapy practice in Seattle?
The market for selling such practices in Seattle is very positive, driven by a strong local sports culture and national industry growth. Seattle’s active population creates consistent demand for performance and rehabilitation services, making the market attractive to buyers, including private equity and strategic partners.
How is the valuation of a Sports Medicine & Performance Therapy practice determined?
Valuation is primarily based on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects true cash flow. This figure is multiplied by a multiple influenced by factors such as practice scale, profitability, provider independence, growth prospects, payer mix, and clinical specialization.
Who are the typical buyers in the Seattle market, and how do they differ?
Buyers include strategic/corporate buyers focused on market expansion, private equity groups seeking growth potential and partnership, and local competitors aiming to acquire patient bases and talent. Each type has different goals, impacting how the sale might be structured and the value offered.
What should owners consider before listing their Sports Medicine practice for sale?
Owners should understand their practice’s unique value proposition such as niche specializations, local reputation, and referral networks. Planning an exit 2-3 years ahead allows strengthening these areas to attract premium valuations and prepares a compelling narrative for buyers.
What are important post-sale considerations after selling a Sports Medicine practice?
Post-sale planning involves decisions on whether to have a clean break or stay involved during a transition. Sellers might negotiate earnouts or retain equity in the new entity to benefit from future profits, ensuring a smooth team transition and aligning the deal with personal financial goals and legacy protection.