How Southern Rehab Physical Therapy found a partner chosen for culture, not just price
After 18 and a half years of ownership, Trace Kennemore wanted a plan that protected his work family, his community and his own love of treating patients. An Outside-In Assessment and a culture-first search with MHA led him to Therapy Partner Solutions.
Trace on working with MHA
“I reached out to Martin Healthcare to do the Outside-In Assessment because I thought that was a good starting point. When you're going into a major business decision like this, you don't know what you don't know.”
What the preparation was worth
Calculated from MHA's Outside-In Assessment valuation and the enterprise value of the partnership. Dollar figures are kept private.
A healthy practice and an owner who plans ahead
Physical therapy is Trace's second career, after years as a high school teacher and coach and a short stint in the military. By 2024 he was about 18 and a half years into owning Southern Rehab, and the practice was doing well, financially and operationally. A planner by nature, he looks one, five and ten years down the road. Nothing was wrong. He wanted a strategy.
“I just wanted to make sure that, number one, this thing didn't die with me if I didn't have an exit strategy or a succession plan. And number two… could I offer an even better service to the community?”
Cashing out and walking away was never the goal. Trace still treats patients and loves it. He wanted to treat at a reasonable pace, hand off the administrative burden, and have a partner who could help negotiate better contracts, so he could do more for his community and his coworkers.
The fear was making a big mistake
“I was most afraid of making a big mistake, because this is the culmination of your life's work, basically.”
His work family
Eighteen employees, and 45% of them with him 10 or more years: a PT of 18 years, a business manager of 17, another PT of 13. Those who wanted a future needed a great one.
His community
Southern Rehab serves Kimball in a particular way. The right partner had to keep that going.
More than dollar signs
Price matters. But owners who look only at the number, Trace says, are the ones who make mistakes.
Learning the rules of engagement
Trace knew MHA from its presence at industry conferences, and he looked at two or three other firms. He chose to start with MHA's Outside-In Assessment in October 2024 because it was a low-cost first step before a major decision.
“You need to understand the rules of engagement. And so you need to know how your business is being valued.”
How you'll be valued
A relatively clear picture of how other companies would look at Southern Rehab, and what matters to them.
A few small tweaks
Changes Trace was unaware of, so the value of the business was adequately represented in its EBITDA.
Detailing the car
MHA helped make the business presentable. In Trace's words: if you sell a car, you wash it and detail it. The details are below.
The few small tweaks
Billing and coding
Optimized so the practice was paid fully for the care it delivered.
Schedule management
Optimized so the clinic's capacity turned into visits.
Medicare compliance
Southern Rehab was not fully compliant with Medicare at the start. MHA got it squeaky clean.
Ready for acquirers
Preparation for every conversation with acquirers along the way.
Seeing past the smoke and mirrors
MHA's Josh Meyers worked with Trace day to day. “I thought I was type A. Josh is type A plus plus,” Trace says. “He's data driven. He's analytical. But yet you can have conversations with Josh.” One of Josh's first questions was what Trace wanted out of this, and what he did not want. Those answers became the criteria for narrowing down potential partners.
Interviews and calls only give you a snapshot of an acquirer. You don't see the true nature of a company unless someone has had more exposure to it. Josh had that inside knowledge.
“Josh didn't lead me down one avenue or the other. He just helped me understand the culture that I was looking for, and what he already knew about certain cultures.”
From assessment to partnership in about 13 months
Assessment
The Outside-In Assessment shows how acquirers will value Southern Rehab.
Preparation
Billing, coding, scheduling and Medicare compliance tightened up.
Partner search
Josh Meyers narrows the field against Trace's criteria and culture.
Diligence
Legal document review, disclosure schedules and open diligence items.
Partnership
Southern Rehab partners with Therapy Partner Solutions.
What Trace would tell an owner in his shoes
Start before you need to
Owners who wait too late don't have time to gather the data or reach their goals. Trace started while the practice was strong.
Know what you want first
Partner and stay on, or exit? Keep treating? Stay with your work family? Answer that emotionally, then use the assessment to gather data analytically.
Get the right expert
Trace wouldn't send a patient with a partial ACL tear to figure out rehab alone. The same goes for selling a practice.
A real client engagement. Quotes are from Trace Kennemore's interview with MHA, lightly edited for length.
About the Southern Rehab transaction
Who did Southern Rehab Physical Therapy partner with?
Southern Rehab Physical Therapy partnered with Therapy Partner Solutions on December 1, 2025. Martin Healthcare Advisors advised owner Trace Kennemore on the transaction.
Where is Southern Rehab Physical Therapy?
Kimball, Tennessee. Trace Kennemore owned the one-clinic practice for about 18 and a half years before the partnership.
How long did it take from first assessment to partnership?
About 13 months. Trace started with MHA's Outside-In Assessment in October 2024, and the partnership became official on December 1, 2025.
What did the Outside-In Assessment show?
How acquirers would value Southern Rehab, and a few small changes so the value of the business was adequately represented in its EBITDA: optimized billing and coding, better schedule management, and full Medicare compliance.
What return did Trace get on working with MHA?
About 6.6 times the added value for every dollar paid to MHA. Company value grew about 2.5 times from the Outside-In Assessment valuation to the partnership, with EBITDA up about 40% and a valuation multiple about 77% higher.
How did MHA help choose the partner?
Josh Meyers worked with Trace day to day. He asked what Trace did and did not want, then narrowed potential partners against those criteria using MHA's inside knowledge of each acquirer's culture.
Does Trace still treat patients?
Yes. He still treats and loves it. A partnership let him keep treating while handing off the administrative burden.
What would the right partner look like for your business?
Marlton, NJ 08053