Who should I hire to sell my physical therapy practice?
Most PT business owners need three people: a transaction advisor who runs the process, a healthcare transaction attorney, and a CPA who knows transactions. The advisor is the hire that most affects the price, because a competitive process with several qualified acquirers is what sets the terms, not the opening offer from the one who called.
By Paul Martin, Founder & President. Updated .
Advisor, broker, investment bank, or on your own
Four ways PT business owners usually approach a transition. They differ in who finds the acquirers, who negotiates, and who carries the work while you keep running your clinics.
| Option | What they do | Best fit | How they are paid |
|---|---|---|---|
| Specialist M&A advisor | Prepares the practice, values it, brings several pre-qualified acquirers to the same starting line, negotiates price and terms, and carries diligence. | Owners who want the best price and terms, and to keep running the practice during the process. | Usually a success fee at closing, sometimes with a retainer. Ask for every fee in writing. |
| Business broker | Lists the practice and connects you with interested parties. Preparation and terms negotiation vary by broker. | Smaller, simpler practices, or owners who already have a likely acquirer. | Usually a commission at closing. |
| Investment bank | Runs a formal sale process, typically for large, multi-site platforms. | Larger groups where the transaction size justifies a bank's minimum fee. | Retainer plus success fee, often with a minimum. |
| Do it yourself | You negotiate directly with the acquirer who contacted you, with your attorney and CPA. | Owners comfortable with one offer and the terms that come with it. | No advisor fee, but no competing offers to price against. |
Who else you need, and when
- A healthcare transaction attorney. Reviews the letter of intent and the purchase agreement, and checks the regulatory points that are specific to healthcare. A general business attorney is not enough.
- A CPA who knows transactions. Gets your financials clean enough to survive diligence, documents your add-backs, and models the tax difference between transaction structures.
- Your financial planner, if you have one. Rollover equity, earnouts and seller notes change when and how you are paid. Your planner should see the structure before you sign.
Bring all three in early. The best time to hire the advisor is about a year before you want to close, while there is still time to fix what would lower the price.
Seven questions to ask any advisor
- How many physical therapy transactions have you closed, and how recently?
- Which acquirers would you introduce us to, and how do you know them?
- How many offers do your clients typically compare?
- What are all of your fees, in writing, and which ones credit back at closing?
- Who does the data gathering and diligence work, you or me?
- How do you keep the process confidential from my staff, patients and referral sources?
- Can I speak with two owners you represented?
Our fees, published
MHA publishes its fees. Every engagement starts with the Outside-In Assessment at $2,500, credited toward the success fee. From there, owners choose Prep to M&A ($2,500 a month during preparation, then a 5% to 10% success fee) or Straight to M&A ($7,500 to $15,000 retainer and a 5% to 10% success fee). The success fee is paid at closing from the proceeds, and final fees depend on size, clinic count and location. See all pricing.
Questions PT business owners ask
Do I need an M&A advisor or a business broker to sell my PT practice?
A broker lists your practice and connects you with interested parties. An M&A advisor prepares the practice, values it, runs a competitive process with several qualified acquirers and negotiates the terms. The more the terms matter to you (your role after closing, rollover equity, your staff), the more an advisor earns its fee.
How much does an M&A advisor cost for a physical therapy practice?
Most advisors are paid mainly through a success fee at closing. MHA's success fee is 5% to 10%, with either a $2,500 monthly preparation fee or a $7,500 to $15,000 retainer, and the $2,500 Outside-In Assessment credits back. Always get every fee in writing.
Should I just sell to the acquirer who keeps calling me?
Usually not. One unsolicited offer gives you nothing to compare it to, and skipping a competitive process often costs more than any advisor fee saves.
When should I hire an advisor?
About 12 months before you want to close. A transaction typically runs six to twelve months from preparation to closing, and preparation is what shortens it and raises the price.
What does an advisor do that my accountant and attorney cannot?
Find and qualify the acquirers, create competition between them, and negotiate the business terms. Your accountant and attorney are essential, but they are not positioned to run the market process.
More guides: Private equity · Prepare for sale · Valuation multiples
