Physical Therapy Business Valuation
Physical therapy practices benefit from aging population and sports medicine demand. Physician referral networks are critical to patient acquisition.
Market Overview
The physical therapy market exceeds $40 billion annually, with continued growth from orthopedic surgery trends and preventive care focus.
What PE Buyers Look For
- Aging population demand
- Sports medicine specialization
- Physician referral networks
- Multi-therapist scalability
- Cash-pay services growth
Valuation Factors
Value Drivers
- +Physician referral network
- +Sports medicine focus
- +Multiple therapists
- +Modern rehabilitation equipment
Value Detractors
- -Single therapist practice
- -Insurance concentration
- -Limited specialization
- -Poor location
Key Metrics Buyers Evaluate
When evaluating a Physical Therapy business, buyers focus on specific metrics that indicate health, stability, and growth potential.
- 1Patient visits per week
- 2Referral source concentration
- 3Insurance vs. cash-pay mix
- 4Therapist productivity
- 5Specialty certifications
Typical Deal Structure
Physical Therapy deals typically follow this structure:
- 75-85% cash at close
- 15-20% seller note
- Therapist employment agreements
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Physical Therapy Markets by State
Explore Physical Therapy acquisition opportunities and market data across major states.
Related Industries
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