Healthcare, Education & Personal Services · Seller readiness
Selling a Physical Therapy Practice business
Published · Reviewed by The Diligence Standard Team · Updated
An owner preparing to sell a Physical Therapy Practice should document the operating drivers buyers will test, normalize the owner’s role and earnings, and surface capital, customer, people and transferability issues while there is still time to address them.
How the business works
Visits per therapist, payer mix, referral sources, clinician retention, billing quality and owner clinical production drive value.
Issues to resolve
- Owner/referral dependence can become buyer leverage if it is not documented, mitigated or priced before launch
- Therapist shortage should be quantified before a buyer uses it to reframe value or terms
- Payer changes needs a clear transfer, retention or mitigation plan before diligence begins
- The business-specific drivers of physical therapy practice value are not documented well enough for buyer diligence
- Owner labor and relationship dependence are not separated clearly from transferable enterprise earnings
- Missing or inconsistent operating evidence gives buyers avoidable negotiating leverage
Evidence to request and reconcile
- Visit/production data
- Payer reports
- Referral-source detail
- Therapist payroll/licenses
- AR aging
- Credentialing
Decision questions
- What profit remains after market pay for owner clinical work?
- Which referral sources dominate?
- How collectible is AR?
- Which therapists are critical?
- What credentialing changes are required?