Should I sell my PT practice?
Sell when three clocks line up: acquirers are paying for practices like yours, your practice can run and get paid without you in every room, and you know what you want your life to look like next. If one of those clocks is off, the better move is usually to prepare, not to sell to the first caller and not to wait and hope.
By Paul Martin, Founder & President. Updated .
Every good exit decision reads three clocks
The market clock
What acquirers are paying right now, and who is active in your market. You do not control it, but you should know where it stands before anyone makes you an offer.
The practice clock
Whether the business can run, and get paid, without you in every room. This is the one you control, and the one acquirers price most closely.
Your clock
What you want your week, your role and your life to look like, and when. Only you can read it, and it is the clock owners most often skip.
When it may be time, and when to prepare first
Signs it may be time
- Your practice could run for a month without you seeing a patient or a report.
- Your financials are clean, current and separate from your personal expenses.
- Your profit (EBITDA) is strong enough that you could step back and still get paid.
- You are working harder than you want to be, and you know what you want next.
- Acquirers are already calling, and you want to know what the practice is really worth.
Signs to prepare first
- You are still the main provider, the main referral source, or both.
- Your books mix business and personal expenses, or run months behind.
- Profit is thin, or the practice is close to break-even.
- One unsolicited offer is driving the decision.
- If the right offer came tomorrow, you would not know how to judge it.
Where your clocks stand today
Answer each one yes, somewhat or no. Every "no" points to work worth doing before a transition, not a reason to give up on one.
- Do you know what practices like yours are actually selling for right now?
- Have acquirers or their representatives reached out to you in the past year?
- Do you know which acquirer types are active in your market today?
- Could your practice run for a month without you seeing a patient or a report?
- Are your financials clean, current, and separable from your personal expenses?
- Is your profit (EBITDA) strong enough that you could step back and still get paid?
- Do you know what you want your week to look like in three years?
- If the right offer came tomorrow, would you know how to judge it?
- Are you working harder today than you want to be?
Questions 1 to 3 read the market clock, 4 to 6 the practice clock, and 7 to 9 your clock. Take the readiness survey to get your reading by email.
What preparation can be worth
Waiting is not the same as preparing. Across 40 transactions MHA advised from 2022 to 2026, outpatient PT practices traded at 3.0x to 10.0x adjusted EBITDA, and where a practice lands depends first on its earnings and operating metrics. Those are the things preparation changes.
Charge capture, schedule management and staffing move fastest. A year of that work took one MHA client from a 5x to an 8x multiple. For another owner, two more years of preparation before a partnership were worth $4.86 million (read the case study). See the valuation multiples by practice size and the 12-month preparation checklist.
Make it a competitive process, on your terms
- Do not default to the acquirer who called. One unsolicited offer gives you no way to know if it is fair. Several acquirers competing on the same information let you set the terms.
- Choose your path on your goals. Private equity, a strategic acquirer, or your own team each suit a different owner. See should I sell to private equity?
- Plan for six to twelve months. A transaction typically runs six to twelve months from preparation to closing, and preparation before that is what shortens it.
- Keep it confidential. Your staff, patients and competitors should find out when you decide, not before.
- Get the right help. A broker lists a practice; an M&A advisor prepares it, values it, runs a competitive process and negotiates terms. See who to hire to sell a PT practice.
Questions PT business owners ask
Should I sell my PT practice now or wait?
It depends on three clocks: what acquirers are paying in your market, whether your practice can run and get paid without you, and what you want next. If all three line up, now can be the right time. If one is off, preparing first usually adds more value than waiting.
Is now a good time to sell a physical therapy practice?
The PT M&A market has not slowed down, it has become more selective. Prepared practices are commanding much stronger terms than unprepared ones, so readiness matters more than timing.
What if my practice is not profitable enough to sell?
There is a path from not-ready to ready, and it starts with knowing where you stand, not with a transaction. Building earnings and reducing the risk attached to them is what moves value. If a transaction does not serve you yet, a good advisor will say so early.
Should I sell to the acquirer who keeps calling me?
Usually not on their terms alone. One unsolicited offer gives you no way to know if it is fair, and skipping a competitive process almost always costs more than any fee saves.
Will I have to keep working after I sell?
Usually for a while, but the length and shape of your role is negotiable, and you have more say over it than most owners assume. It is a term you negotiate, not a default you accept.
How long does it take to sell a PT practice?
A transaction typically runs six to twelve months from preparation to closing. Preparation before that, often about a year, is what shortens the process and strengthens the terms.
More guides: Who to hire · Private equity · Prepare for sale · Where we work · Valuation multiples
