It has been a robust first three quarters in 2019 and I have personally been involved in 4 practices being sold so far this year in the states of New York, North Carolina, and New Jersey,involving both OT and PT practices. The deals were done with individual practitioners as well as corporate entities. So, the answer to the question I get most – is there still a market for therapy practices is a resounding YES! This year has also affirmed for me the importance for therapists to start planning an exit strategy early and to build in value over time. There are value makers and value takers in every practice. Do you know what yours are?????
The sale of your practice should start long before it is announced publicly. Proper preparation is essential.
Not since the consolidation in our industry back in the 90’s has there been so much interest in therapy practice sales, mergers and consolidations and all research points to this trend continuing. Regardless of whom you might end up selling to, two points to always keep in mind are that (1) anything that increases the volume or the security of future revenue will increase the value of your practice, and (2) what makes your practice valuable to you will make it valuable to a buyer. More and more corporate and private equity entities are buying up practices across the country. Find out who are they (a comprehensive list will be provided!) and if you are missing the boat, making a deal with the devil, or might be better off selling internally to someone in your practice or a local competitor.
1) Understand the specific criteria used to determine the valuation of a practice, including EBITDA, goodwill, infrastructure etc. and what are viewed as value makers versus value takers in the industry.
2) Understand the steps necessary to prepare your practice to bring it to market and when to get this process started
3) Find out the financial preparation and forms you need to have in place and for review during due diligence
4) Discuss differences between an outright acquisition, merger, and structured buy in and what determines the best fit for your scenario
5) Understand what makes negotiating with a fellow therapists versus a corporate entity so different and how
you can level the playing field
6) Discuss the pros and cons of using a broker or intermediary and what makes a qualified buyer
7) See what you need to do so that you can answer the #1 question: “Can this practice exist without you?”
8) Understand the steps necessary in selling a practice including non disclosure agreements (NDA), letters of intent (LOI) and purchase agreements and tax allocations of purchase price and implications to be aware of.
9) Life after the sale! It may not be as easy as you think!
YES YES YES!!!! if you are considering buying another therapist’s practice, this info is VERY relevant for you too!
This webinar takes the angst out of selling a practice and present the information in user friendly, logical steps and is presented from both the perspective of the buyer and the seller. Live Q/A! Everyone who registers can take a post webinar quiz and get a certificate of participation for 2.5 hours. The webinar will be recorded if you cannot attend live. Early Rate registration of $90 now until October 21st, and then fee is $100. Registration includes all handouts and a copy of the powerpoint.
This webinar is presented by Iris Kimberg, MS PT OTR CEO of NYTherapyguide.com who, on her own, sold her therapy agency in a multi million $ deal to a Fortune 500 company. She has worked on valuations of many practices and helped sell over 3 dozen OT PT and ST practices in the last number of years.
Iris has presented this material for the APTA PPS conference and privately to over 300 therapists.