You’ve spent years building a successful physical therapy practice, and now you are exploring whether to sell your practice or partner with a larger company.
There are some basic – but important – questions to ask interested parties as you navigate these conversations. Insightful, exploratory conversations are the key to a successful merger or acquisition.
U.S. Physical Therapy (USPh) encourages owners to ask these questions to gather the necessary insight that will allow them to make the best possible decision for their business, financial picture, and staff.
What is my physical therapy practice worth, and how much will I actually receive?
We pay cash for physical therapy partnerships by purchasing a percentage of equity in your company. We use a fair, market-based multiple of your practice’s historical annual earnings. When the time comes for you to retire, we will purchase your remaining equity with the same multiple and methodology that we used when we initially partnered together.
As a partner, you will have the security of a multi-year employment agreement with guaranteed compensation, as well as a share of the ongoing profits in the partnership. Our partners receive monthly cash distributions based on their equity percentage. Additionally, the cost of our purchase of your practice will sit on our books—not our new partnership’s books, which is very different from private equity-backed arrangements. Your partnership will never be burdened by USPh’s debt or be affected by other partnerships’ solvency.
How will this affect my employees and the culture I’ve built?
In almost all our acquired partnerships, there are no staff changes whatsoever, just additions over time as the new partnership grows. At USPh, we believe that people and relationships matter. In fact, this is at the forefront of everything we do. We are looking for true stability with respect to the staff that you have carefully assembled.
We understand that you are considering a partnership to strengthen your practice and expand opportunities. Our model is designed to allow for a calm and painless transition for you and your team. There will be no uncomfortable post-transaction reorganizations.
What will my life, and my role in the practice look like after I sell?
You will continue to be the name and face of the business locally. Your title doesn’t change, and the reporting structure of your business stays the same. Big decisions (like opening a new clinic) are made together and discussed as any other business partners would.
If you are someone who is looking to start planning for retirement, succession planning is a big part of what we do at USPh. We have mechanisms in place that allow the next generation of physical therapists to become owners.
What will happen to my patients, referral relationships, and reputation?
Your relationships with the community and referral sources continue to thrive as we stay in the background supporting you and your business. When we partner with someone, we want to do as little as possible to disrupt the business as it exists today.
Even though we are a public company, when we announce a recent acquisition, we always leave the name and even the state off to ensure privacy. It is up to our partners when and if they let the community know about the partnership.
Will U.S. Physical Therapy resell my business?
One important distinction between USPh and other PE-backed groups is that we are a forever company. As a partner, you would co-own the business with more support than ever before. We work together to elevate key staff and help them purchase equity, so the company remains a key part of the community forever.