Today on the Podcast: The Blueprint to Buy or Sell a PT Clinic (Lessons From 127 Clinic Sales) w/ Clinic Accelerator
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About This Episode
Today I’m joined by Rick Lau and Soroush Peyvandi from Clinic Accelerator.
Rick is the founder of Clinic Accelerator and has over 20 years of experience and has built and exited multiple businesses—including a network of 127 physical therapy clinics with 1,400+ staff.
Soroush is both the Director of Mergers & Acquisitions at Clinic Accelerator AND the CEO of Alberta Rehab Group.
Together, their Clinic Accelerator marketplace has seen $30M+ of clinic deals already sold and $70 million in active deals.
In this episode, we’re covering both sides of the deal: how to buy a clinic the right way and how to sell your clinic for maximum value. We’ll walk through what buyers look for, what makes a clinic more valuable, and how owners can approach the process with clarity and confidence—whether they’re looking to grow through acquisition or plan an exit down the road.
Connect with Rick & Soroush on their Clinic Accelerator website!
You can also follow them on Instagram: @thericklau and @soroush.phyzio
Listen Above or Read The Summary Here:
Trends in PT Clinic Mergers & Acquisitions
Neil, Rick, and Sarush outline how today’s PT market is more competitive than ever, with recruitment challenges and post-COVID unpredictability driving many owners to consider selling. Despite the influx of private equity and corporate buyers, the market remains highly fragmented—only about 10% of US outpatient clinics are consolidated, leaving huge growth potential.
- Private equity and corporate groups are the most active buyers, especially for in-network, insurance-based clinics that scale well.
- Individual buyers and regional operators are acquiring smaller clinics or consolidating in select states, often with the intent to later sell to larger groups.
- There’s a massive opportunity: “The biggest consolidators right now only make up about 10% of the market…so there’s a huge amount of opportunity for consolidates to get even bigger,” notes Sarush.
What Buyers Look For When Acquiring Clinics
Acquisition strategy starts with the end in mind. Sarush advises, “You always have to build to be ready to exit because you never know what’s going to happen.” Owners should build practices that are attractive to buyers, even if selling isn’t imminent.
- Financial Health: Clean financial statements and strong profitability are essential. If not available, EMR revenue reports and payer mix analysis become crucial.
- Systems & Leadership: Clinics with solid systems, standard operating procedures, and leadership teams are valued higher. “If you really dial those processes in, you can obviously do very well with your own practice, but then you do see those opportunities in other practices that are selling,” Neil emphasizes.
- Staff Quality & Retention: High staff turnover can kill a deal. “Your first quarter, don’t put a single thing into place. Let the dust settle, build relationships, start to meet the staff because they have to trust you,” advises Sarush.
- Location: High-demand, low-competition locations can drive up multiples, especially if a buyer wants to enter a new market.
- Opportunity for Improvement: Buyers look for clinics lacking in marketing, systems, or leadership, seeing these as growth opportunities.
Buy vs. Build: The Case for Acquisitions
Purchasing an existing clinic is often lower risk and faster to break even than starting from scratch. Rick points out, “If you could buy a business where, in two years or three years, your break even, that is a lower risk and more of a guaranteed return.” Banks also prefer to finance acquisitions due to predictable cash flow.
Preparing Your Clinic for Sale
If you’re considering selling, advanced preparation is key to maximizing value.
- Preparation Period: Start prepping at least two years in advance to ramp up profitability and get your financials in order. “You need at least a year of ramp and then one year to actually show the result of that ramp,” Sarush recommends.
- Create Competition: Never negotiate with a single buyer. Running a competitive bid process ensures you get better offers and terms. “You need that competition, you need the bid process to ensure that you’re getting the maximum value,” says Sarush.
- Deal Terms Matter: Value isn’t just about the top price. Transition period, cash up front, and legacy protection are frequent deal breakers. Many sellers accept a lower multiple for a shorter transition or better terms.
- Turnkey Operations: The less the business depends on you, the higher your multiple and the better your terms. Rick shares, “He delivered a turnkey leadership team that didn’t depend on him…and he was able to do that because he delivered a…turnkey leadership team that didn’t depend on him.”
Typical Multiples & Advisor Value
Multiples for small, owner-dependent clinics range from 2.5x to 4.5x EBITDA. Larger, well-run, multi-location clinics can see multiples as high as 8–12x or more. Using advisors is critical—buyers are experienced and will try to grind down value. Sarush warns, “You could be costing yourself way more than if you invested in advisors to help you through this process.”
Final Advice for Owners
Start planning early—ideally years before you want to exit. Build systems, improve profitability, and make your clinic less dependent on you. Whether buying or selling, relationships, preparation, and professional guidance make all the difference. As Sarush puts it, “You have to build your business in a way that at any time you can extract that value through an exit.”
Common Questions Practice Owners Ask About This Topic:
- How do I value my physical therapy clinic?
- What are the steps to buy a PT clinic?
- How can I prepare my clinic for sale?
- What makes a PT clinic attractive to buyers?
- What should I consider before selling my clinic?
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PS –
See how the right marketing ideas can help you grow your Physical Therapy or Chiropractic clinic