What is my PT practice worth?
Across 40 transactions MHA advised from 2022 to 2026, outpatient physical therapy practices traded at 3.0x to 10.0x adjusted EBITDA. Where a practice lands depends first on its earnings and operating metrics, then on payor mix, its market, and how concentrated its referrals are.
By Joseph Anzur, CFA, Managing Director, Mergers & Acquisitions. Updated .
Source: 40 MHA transactions, 2022 to 2026, measured on adjusted EBITDA.
| Practice profile | Adjusted EBITDA | Clinics | Multiple range |
|---|---|---|---|
| Single clinic or small group | Under $500K | 1 to 3 | 3.0x to 5.0x |
| Regional group | $400K to $700K | 3 to 6 | 5.0x to 7.5x |
| Multi-site platform | $800K and above | 7 or more | 7.0x to 10.0x |
Anonymized at our clients' request. Implied values are full enterprise value, including rollover equity and earnouts.
The ownership group was departing after the transaction. A solid multiple for its size, inside the 3.0x to 5.0x range.
Above the range for its size. The practice was extremely profitable, and the owner stayed on, rolled significant equity and planned to expand to at least three locations in the near term.
Owners stayed heavily involved and took significant rollover equity, so part of the value is held as equity in the acquirer rather than paid at closing.
Within a range, these decide whether a practice lands at the low end or the high end.
The size, quality and trend of EBITDA, backed by clean financials and strong operating metrics. This matters more than any other factor.
How revenue splits across commercial insurance, workers' compensation, Medicare and Medicaid. Heavier reliance on government payors adds reimbursement risk.
Where the practice operates, how dense its locations are, and the reimbursement and regulatory environment of that market.
How much of the patient volume depends on a small number of physicians or a single health system.
Most outpatient PT practices are valued as a multiple of adjusted EBITDA. Across MHA's 40 transactions from 2022 to 2026, that multiple ran from 3.0x to 10.0x, depending mainly on size, earnings quality, payor mix, market and referral concentration. Multiply your adjusted EBITDA by the range for your profile above for a first estimate.
3.0x to 5.0x for practices under $500K EBITDA with 1 to 3 clinics, 5.0x to 7.5x for $400K to $700K and 3 to 6 clinics, and 7.0x to 10.0x for $800K and above with 7 or more clinics.
Acquirers price risk as well as earnings. Payor mix, the market a practice operates in, and how concentrated its referrals are can each move it up or down, and one significant risk can outweigh strengths elsewhere.
Not always. Larger transactions often include rollover equity, earnouts or seller notes, so part of the headline value is paid later or held as equity in the acquirer. Comparing offers on structure, not just the multiple, is a large part of what we do.
Start with the value calculator for a range in about two minutes. For a defensible number, the Outside-In Assessment reviews your actual financials. It costs $2,500, credited toward the success fee if you engage MHA for a transaction.
Ranges reflect 40 outpatient physical therapy transactions advised by Martin Healthcare Advisors from 2022 through 2026, measured on adjusted EBITDA. Profiles and examples are anonymized. Past transactions do not guarantee future results, and every practice is valued on its own facts. MHA has advised on 200+ transactions over 26 years. Updated October 2026; we review these ranges quarterly.
