Selling to private equity vs a strategic group vs an individual buyer
Should you sell your therapy practice to private equity? It depends on size, growth and how long you want to stay. PE platforms, strategic groups and individual buyers differ in price, terms, culture and what they ask of you after closing. Compare total value and fit, not only the headline price. For the full sale process from valuation through closing, read how to sell a therapy practice.
What are private equity platforms looking for?
- Often pay higher multiples for larger, growing practices
- Typically want you to stay for a transition period and may ask you to roll over equity or accept an earnout
- Aim to grow the practice and sell again in several years
- Expect strong financial reporting and growth plans
How do strategic groups differ?
- Buyers that already operate similar practices
- May value fit, referrals and geography more than pure financial structure
- May integrate your team and systems into theirs
- Can close faster if they know the market
When do individual buyers make sense?
- Often clinicians buying with an SBA loan or personal funds
- Usually pay lower prices and need seller cooperation on financing
- Often keep the practice's name and culture
- Smaller deals can take longer if financing is complex
How do the three buyer types compare?
| Factor | PE platform | Strategic group | Individual buyer |
|---|---|---|---|
| Typical price | Often highest for larger practices | Depends on fit | Often lowest |
| Your role after | Transition, sometimes longer | Varies | Brief transition |
| Deal structure | Cash plus rollover or earnout | Cash, sometimes earnout | Cash plus seller note |
| Speed | Longer diligence | Can be fast | Depends on financing |
| Culture risk | Higher | Medium | Lower |
What questions should you ask any buyer?
- What will happen to my clinicians and clients?
- How will you pay, and how much is at risk after closing?
- What do you expect from me after the sale?
- Will the practice name and brand continue?
Frequently asked questions
Is private equity right for small practices?
Often only for larger groups with growth potential and clean financials.
Can I sell part of the practice?
Yes, many deals involve partial sales with a rollover stake.
How Lineage helps
Lineage advises owners through valuation, buyer selection and negotiation. Get a free estimate.
This is general information, not legal, tax or financial advice.