SovDoc provides expert financial, strategic, and M&A advisory to physical therapy practices looking to scale, optimize operations, or prepare for a strategic sale. Whether you’re an independent PT clinic, a multi-location group, or part of a larger healthcare network, our private equity-grade insights help maximize profitability and streamline your growth journey in today’s evolving healthcare landscape.
Outpatient Physical Therapy Market Overview
The physical therapy market is experiencing significant growth, currently valued at approximately $49.48 billion and projected to reach $61.70 billion by 2030 with a CAGR of 4.6%. Valuation multiples for multi-location practices typically range from 5x to 9x EBITDA, with larger platforms commanding up to 15x EBITDA based on operational efficiency and growth potential. Understanding your practice’s current market position is the first step toward a successful transition.
Outpatient Physical Therapy Practice Acquisition Trends
Despite a slowdown in private equity platform acquisitions since 2021, market fundamentals remain strong, driven by an aging population, rising chronic conditions, and telehealth expansion. Strategic buyers are increasingly focused on practices demonstrating strong operational efficiency, diversified revenue streams, and scalable multi-location models that can thrive in a consolidating healthcare landscape.
Maximizing Your Practice Value
Physical therapy practices with multiple locations and established regional presence stand to benefit most in today’s M&A environment. Buyers are particularly focused on practices that demonstrate:
- Revenue Diversification: Balanced payer mix across commercial insurance, Medicare, and cash-pay services
- Operational Efficiency: Higher EBITDA margins through optimized therapist productivity and scheduling
- Scalable Infrastructure: Technology systems that support growth and integrate with larger healthcare networks
- Stable Referral Networks: Diverse referral sources that reduce dependence on any single channel
Medium-sized multi-location practices showing strong performance metrics can achieve valuations 25-40% higher than industry averages when properly positioned to potential buyers. Whether you’re exploring a strategic exit or scaling to new heights, having the right advisory partner ensures you maximize both financial outcomes and your practice’s continued legacy of patient care.
M&A ADVISORY
A trusted partner in delivering high-value M&A transactions and exit planning for healthcare organizations & private practices
Detailed Financial Projections
Bespoke Acquisition Strategies
Buyer Targeting and Outreach
Confidential Information Memorandums
Teaser Documents
Data Room Management
Indications of Interest (IOIs)
Letters of Intent (LOIs)
Facilitation of Management Presentations
Deal Negotiation and Closing Support
Our M&A Playbook
Simplifying the M&A process to delivery value-driven results
Preparation
- Build a compelling narrative with financial models & investor presentations
- Identify and prioritize strategic and financial buyers tailored to your goals
01
Marketing
- Present teasers and distribute CIMs to targeted buyers under NDAs
- Gather and evaluate Indications of Interest (IOIs) to identify qualified prospects
02
Initial Engagement
- Facilitate initial buyer reviews and address questions about the opportunity
- Shortlist top buyers and begin preliminary deal negotiations
03
Due Diligence & LOI
- Conduct management presentations and finalize Letters of Intent (LOIs)
- Manage virtual data rooms (VDR) and coordinate due diligence efforts
04
Closing
- Negotiate final terms and oversee confirmatory due diligence
- Execute the purchase agreement and ensure a smooth transaction close
05
Disclaimer: The steps or stages are based on investor demand and general market factors.