How to sell a therapy practice in 2027: step by step
How do you sell a therapy practice? Decide your goals, get a realistic valuation, prepare the business so it runs without you, choose a buyer type, run a confidential process, negotiate terms and close. Most sales take six to twelve months, and owners who prepare a year ahead tend to get cleaner offers.
What should you decide before you sell?
- Full exit, partial sale or a partnership with a larger group
- How long you are willing to keep working after the sale
- What matters most besides price: your staff, your clients, your name
How do you get a realistic valuation?
Small practices are often valued on seller's discretionary earnings. Larger ones are often valued on adjusted EBITDA, multiplied by a market multiple. Multiples vary with growth, owner dependence, payer mix and size. There is no single published multiple that fits every practice, so treat any range as a starting point for diligence, not a promise.
What raises value:
- Revenue spread across many clinicians, not concentrated in the owner
- Stable, contracted payer mix
- Documented processes and clean books
- Clinician retention and non-solicitation agreements where enforceable
- Growth in referrals and capacity
What lowers value:
- The owner seeing a large share of clients
- One payer making up most revenue
- Messy or commingled finances
- Licensing, billing or compliance issues
How should you prepare the practice?
- Reduce owner dependence by hiring or promoting clinical leadership.
- Clean up financial statements and separate personal expenses.
- Review payer contracts for assignment and change-of-control terms.
- Audit billing and documentation.
- Organize licenses, policies and key agreements.
Which type of buyer fits your goals?
- Strategic groups expanding into your area
- Private equity platforms building regional or national practices
- Individual clinicians, often financed with an SBA loan
Each brings different prices, terms and expectations for your role after closing. See our guide on selling to private equity vs a strategic group vs an individual buyer for a side-by-side comparison.
How do you run a confidential process?
- Prepare a summary and detailed information package.
- Have buyers sign confidentiality agreements before sharing details.
- Compare offers on total value, not just headline price.
What deal terms should you understand?
- Cash at close vs earnouts, rollover equity and employment agreements tied to future performance
- Rollover equity, where you keep a stake in the buyer
- Employment agreement length, compensation and non-compete terms
- Asset sale vs stock sale, which affects taxes and contracts
What happens in diligence and closing?
Expect buyers to review financials, payer contracts, billing samples, licensing, policies, leases and staff agreements. Respond quickly and keep running the practice well, since performance during diligence affects the deal.
Frequently asked questions
How much does a broker charge?
Broker fees vary by deal size and service. Many use a success fee based on the sale price, sometimes with a minimum for smaller deals. Compare total cost and service, not only the percentage.
Will my clients and staff find out?
Not until you decide. Buyers sign confidentiality agreements and you control the timing of announcements.
Can I sell a solo practice?
Yes, but it is harder because value is tied to you. A transition period and introductions to a successor clinician help.
Do I need a licensed broker?
Some states require a licensed broker for business sales. Check your state or work with a licensed partner.
How Lineage helps
Lineage advises owners of therapy, psychiatry, ABA and IOP practices from valuation through closing. Get a free estimate.
This is general information, not legal, tax or financial advice.