Physical therapy is one of the most attractive sectors in healthcare today, with more people enlisting the help of physical therapists than ever before. If you’re interested in joining the growing market by buying a physical therapy practice, we’ll explain what you should look for.
An Attractive Location
The three most important things in real estate are location, location, and location. In business, the location is also incredibly important, as it affects value and quality. If the practice is in the middle of nowhere or in a building that requires dramatic renovations, the business won’t be as valuable on the market. What does it mean to find a practice with an attractive location?
Looking for an Attractive Location: Demographics and Competition
Finding an attractive location depends on the surrounding community and market. Buyers should research the area of the physical therapy practice, focusing on demographics and competition. Many physical therapy clients are older adults, so the practice would benefit from nearby communities of seniors and retirees.
Also, buyers must consider competition in the area, how well-established they are, and if the local market is large enough to support competing practices.
Reliable Staff and Continuity
Other things to look for when buying a physical therapy practice are the staff and continuity potential. Unless you want to start anew with a different team, having some staff transition from the old ownership to the new—physical therapists or support staff—can be a significant benefit. The ownership transition is smoother with continuity, and clients are more likely to stay if they’re familiar with the staff.
Solid Financials
Buyers must also consider the practice’s financials and whether it rests on a solid foundation or will require significant investment. Review the gross revenue, the average revenue collected per visit, and the patient retention rate. Many clients will follow their physical therapists if you change up the staffing, so employee continuity is often critical to these financials.
Find a Physical Therapy Practice That Fits Your List
If you’re looking for a physical therapy business for sale, you’ve come to the right place. At Private Practice Transitions, we regularly help physical therapists sell practices and connect them with interested buyers. Check out our listings online to see what’s currently available, or contact one of our expert brokers to learn more about buying a physical therapy practice.
