A few minutes of read-only financials and a short questionnaire surfaces what a buyer would discount your clinic for — whether the cash flow still holds once a market associate-PT salary is charged for the visits you personally treat, your payor mix and Medicare-rate exposure, how concentrated your physician referrals are, and your no-show drag. Preview costs nothing.
Enter two numbers for an instant Physical Therapy & Rehab Clinics ballpark. No signup — the real number comes from your books.
We answer each one from your books first — so you fix the story before a diligence team writes the number.
You're the primary treating clinician — a large share of visits, and the referral relationships that feed them, run through you personally. A buyer reads that as the business walking out the door at close. Until an associate PT is demonstrably carrying caseload and the referrals survive without your name on them, expect the offer to sit at the bottom of the SDE band and come loaded with an earnout and a multi-year treating-employment tie-in.
Outpatient PT lives on third-party rates, and Medicare PT economics have been eroding — a conversion-factor cut in 2025 and flat-to-down 2026 codes. A clinic skewed to Medicare carries that policy risk into the buyer's model. Commercial-heavy mix reimburses higher; concentration in any one payor, especially a declining-rate government payor, is a discount trigger. Show the mix and the trend, or the buyer assumes the worst.
If one ortho/PCP group or a single workers'-comp source drives more than ~25–30% of new patients, that's a single point of failure a buyer can't insure against — relationships can move with a phone call. Diversified, documented, recurring referral sources defend the multiple; a concentrated funnel caps it.
PT is capacity-constrained: revenue is hours times utilization, and you can't bill what you can't staff. Therapist turnover and a thin local hiring pool cap growth. Compounding it, no-shows are endemic in outpatient PT, highest among Medicaid and workers'-comp patients. A buyer wants your cancellation/no-show rate, your fill protocols, and a staffing bench, or they model lost capacity into the price.
Each lever is sized for a typical owner-pt single clinic, ~$1.1m revenue, ~12–18% owner-pt-normalized ebitda — about $250K EBITDA. Same number whether we frame it as “what a buyer discounts” or “what you keep by fixing it.”
The clinic generating revenue when the owner is away is the single biggest lever. An associate PT (or two) already carrying billable hours proves transferability, defuses the owner-is-revenue attack, and is the fastest path from the bottom of the SDE band toward the EBITDA-multiple market.
adds about 0.5–1.0× to your multiple · usually takes 12–24 months
A commercial-weighted mix with low single-payor concentration insulates against Medicare-rate erosion and reads as durable revenue. It lifts both the normalized margin and the buyer's confidence in the pro forma.
adds about 0.3–0.5× to your multiple · usually takes 12–24 months
Multiple physician groups, employers, and direct-access self-referrals, none dominant, documented and owned by the clinic rather than the owner — this is the closest thing PT has to recurring revenue, and it removes the single-point-of-failure discount.
adds about 0.2–0.5× to your multiple · usually takes 6–18 months
Wellness memberships, sports performance, and dry needling add high-margin revenue that sidesteps reimbursement risk entirely — directly countering the Medicare-cut narrative and widening the margin a buyer underwrites.
adds about 0.1–0.3× to your multiple · usually takes 6–12 months
Typical impact ranges blended from lower-middle-market transaction data, sub-$50M M&A databases, and observed consolidator pricing in the $300K–$3M EBITDA band. Directional, not a guarantee — your memo computes your actual numbers from your books.
The metrics buyers grade physical therapy clinics on. The diagnostic fills the “your business” column from your actual QuickBooks data.
| Metric | Physical Therapy & Rehab Clinics benchmark | Your business | What it means |
|---|---|---|---|
| Recurring / contracted revenue | ~50% of revenue | Your data | Higher is better — the top multiple lever |
| Gross margin | ~90% | Your data | Pricing and job-costing discipline |
| EBITDA margin | ~15% | Your data | What flows to the bottom line |
| Healthy customer-concentration ceiling | top customer under 25% | Your data | Above it, buyers price the risk |
| Typical industry growth | ~7% / yr | Your data | Beating it can add to your multiple |
| Typical sale multiple | 3.2–6.0× EBITDA | Your data | Where the bidding starts; the levers above move you up |
Benchmarks are blended industry composites, service businesses $1M–$10M revenue, 2026-Q1 — directional, not a precise bar. Your memo measures you against your own books. Connect QuickBooks to fill in your numbers →
The diagnostic arrives as formats you can actually use, plus a private, scoped link to share a curated package with a specific buyer — you decide, card by card, what they see.
A branded slide deck, ready to present — for the buyer meeting, the lender, or the board.
A written diagnostic that holds up with buyers, yours to edit — plain-English summary, how we rebuilt your real earnings, every add-back listed.
Live formulas, not a dead printout — the path from raw profit to your real number, plus the cash-tied-up scenarios a buyer can stress-test.
Outpatient rehab is one of the most active healthcare roll-ups. PE-backed platforms acquire established clinics as add-ons and pay up when the clinic runs without its owner: Confluent Health (Partners Group), Ivy Rehab (Waud Capital), Upstream Rehabilitation (Revelstoke), and Athletico (BPOC), plus public strategics U.S. Physical Therapy (which buys via partnership stakes) and Select Medical. The double-digit multiples you read about (a ~11x take-private) are what the acquirer's whole platform is worth — a single $500K–$5M clinic sells INTO that roll-up on SDE (~1.8–2.8x) or, with associate coverage, EBITDA (~3.2–6x). For a small clinic the realistic buyer is often a regional group or another clinician-owner. The memo maps which pool fits a clinic your size.
Read-only, through Intuit. We never write to your books. About 5 minutes.
Just what the books can’t show — agreements, key accounts, who runs the crews.
Buyer-readiness score, normalized EBITDA, value range and top flags — instantly.
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Most Physical Therapy & Rehab Clinics businesses in the $1M–$10M revenue range trade at roughly 3.2× to 6.0× normalized EBITDA, with a typical deal near 4.5×. Smaller, owner-dependent shops sit at the low end; larger, manager-run businesses with recurring revenue reach the top. Your actual number depends on your books — that's what the diagnostic computes, blending recent lower-middle-market closings, main-street marketplace sales, and academic M&A survey data.
No. Those double-digit multiples are what the acquirer's entire platform is worth (e.g., a ~11x take-private). A single owner-PT clinic trades on SDE (~1.8–2.8x) or, if you have multiple clinics and associate coverage, EBITDA (~3.2–6x). The roll-up buys you near those numbers and folds you into their platform — the multiple arbitrage is their return, not your sale price.
It's the single biggest lever. If revenue and referrals run through you personally, buyers anchor to the bottom of the band and add an earnout plus a treating-employment tie-in. Getting an associate PT carrying real caseload and making referrals institutional (clinic-owned, documented, diversified) is what moves you toward the top of the SDE range and opens the EBITDA-multiple conversation.
Buyers do, so you should. Medicare PT rates have been eroding. A Medicare-heavy clinic carries that policy risk into the buyer's model. Knowing your exact payor mix, leaning commercial and cash-pay where you can, and showing the trend is how you defend the multiple instead of letting the buyer assume the worst.
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