You want to sell your physical therapy practice? Then it's good to know what the takeover market in the field of physical therapy practices looks like. An increasing number of people are using the physical therapist, with preventive care also being provided more frequently.
The physical therapy world is experiencing a consolidation storm. Larger chains can negotiate better with health insurance companies, have the ability to deploy larger marketing campaigns and therefore more capital to acquire "smaller" practices.
There are many ways to value a business. A common method of expressing the value of a business is "a factor x gross annual profit." This factor is also called multiple and another designation for gross annual profit is EBITDA (Earnings Before Interest Taxes Depreciation and Amortization).
In the healthcare and pharmaceutical sector, which includes a physical therapy practice, an indicative EBITDA multiple range of 5.9 to 6.9 is currently used, according to the Brookz Takeover Barometer. The average EBITDA multiple across all SME sectors is 4.90.
The valuation of a business is often the starting point for negotiations between buyer and seller. The outcome of these negotiations is the final sales price. So valuation and price are two different quantities. Besides valuation, the price is also determined by possible scarcity in the market, bargaining power of the parties, the strategic value of the business for the buyer and possible synergy effects for the buyer (cost savings, purchasing advantages).
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Want to buy a business or sell a business in the healthcare & pharmaceuticals sector? With this Brookz Sector Monitor, we want to present buyers and sellers with facts, figures and an outlook that provide insight into the number of transactions, the value development of businesses and the latest trends and developments in healthcare & pharmaceuticals. Because in every buying or selling process, thorough preparation gives peace of mind, overview and structure.
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There are many startups in the industry every year, which also makes many businesses with only one person working visible.
In figures, the number of physical therapy practices in 2024 looked as follows(CBS):
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A number of trends and developments will inevitably cause changes in the coming years, but also offer physical therapy practices many growth and acquisition opportunities:
Physical therapy is taking on a larger role in health care. With a growing number of occupational injuries, elite athletes and the elderly, there is a need for both curative and preventive care. This will save surgeries and long rehabilitation procedures, according to Rabobank.
Specializations are also possible among physios, and the number of specialists in this industry is increasing. Think of physical therapy specifically for children or for pregnant women. The demand for the specialized pulmonary physical therapist is currently very high in connection with post-coronary complaints.
There are smaller practices that only offer physical therapy. However, larger chain partnerships are also popular, as the interplay between specialists has patient benefits. Think short lines of communication with the family doctor or edema specialists, to name a few.
Digital applications in healthcare are in demand and much needed. It goes beyond just conducting online intakes or diagnosing complaints, because eHealth can also be used for therapy itself. Think of apps that show exercises or results that the patient can forward to the specialist, ING said.
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