How to sell a physical therapy practice?

Physical therapy is an active consolidation space, so most sellers have real buyer demand. The most acquisitive buyers are private-equity-backed PT and outpatient-rehab platforms (often acquiring through a management services organization, or MSO), regional multi-clinic groups, and sometimes hospital or orthopedic systems. The sale process is standard: clean up financials, value the practice, approach buyers, sign an LOI, complete diligence, and close, usually over 6-12 months.

PT practices typically sell for about 4.0x-7.0x EBITDA, or roughly 2.5x-4.5x SDE for single-clinic, owner-operated practices. Scale is the biggest single driver: a multi-clinic group with professional management and provider depth commands a higher multiple than a one-clinic practice that depends on the owner-clinician. Both insurance-model and cash-pay practices get acquired; what matters is that the payer mix is stable and the contracts are documented.

Value levers include a diversified, well-contracted payer mix, low dependence on the selling clinician, with treating providers and referral relationships that stay post-sale, strong referral sources, and clean billing and compliance. The biggest discount drivers are owner-clinician dependence, if you generate most of the visits, and referral concentration. Buyers typically want the selling provider to stay on for a transition and roll some equity.

In a PE deal expect roughly 60%-80% cash at close with the rest as equity rollover, seller note, or earnout. On taxes, federal long-term capital gains run about 15%-20%, plus state tax; the 3.8% net investment income tax may not apply to an owner who materially participates in the practice, so many owner-operators land nearer ~20% federal, confirm with your CPA. DealSeam is not a traditional business broker; it introduces practice owners to qualified buyers where there is a fit and is paid by the buyer, so sellers pay nothing.