Approximately 50% of physical therapy practices are known as “onesies” and “twosies.” This means that the practice is owned and operated by one physical therapist that runs one or two clinics. Although this business structure works very well for the physical therapist who owns the business, it also means the marketplace is fragmented, and many therapists are finding it more difficult to go up against big buyers.
In addition to these larger buyers, changes to payor reimbursement and the Affordable Care Act have made it much more difficult for owners of smaller practices to acquire new clinics. If you are looking for a physical therapy clinic for sale and know you will be going up against large buyers, follow the below tips for the best chance of success.
Understand the Basics
Setting goals for yourself, assessing your current circumstances, and documenting your finances may not be as exciting as other elements of a purchase, but they are crucial steps you must take. Following these steps is the only way to level the playing field against larger players that have extensive experience in mergers and acquisitions.
Know Who the Buyers Are
In the past decade, hospitals and private equity groups have made up a large portion of buyers of physical therapy practices. Both groups bring their own benefits to businesses and make great partners, particularly for smaller practice owners. As such, you must research the pros and cons of each so you can make an informed decision about whether you want to partner with one of these entities, or make a purchase on your own.
Know the Terms
It is easy to become focused on price when buying a physical therapy practice. However, the purchase agreement will include many more terms than just the overall cost. You must understand these terms so you can negotiate terms that are more favorable to you. Due to the fact that larger buyers will understand these terms thoroughly, the only way to compete against them is to understand them yourself.
Know How to Negotiate
When going after a physical therapy clinic for sale, you will have to negotiate to some extent. Understand the price that you are willing to pay, and when you are willing to walk away, as well as the terms you are most interested in securing to give yourself the best deal, without losing to a bigger player altogether.
Work With a Washington Business Broker
You are a physical therapist and that is where your knowledge and skill level lie. Many physical therapists are not familiar with the ins and outs of purchasing a practice, or how to compete against the larger buyers. However, a Washington business brokerage will have the professionals needed to guide you through the process. If you are interested in buying a physical therapy practice, our skilled brokers at Private Practice Transitions are here to help. Call us today at (253) 509-9224 or contact us online to learn how we can help you secure the practice that is right for you, even when you are going up against big buyers.