Is 2025 the Right Time to Sell Your ABA Practice / Pediatric Therapy Company (OT, PT, ST)?
- Neela Thambirajah
- Jan 23
- 6 min read
In recent conversations, we’ve been talking with owners of ABA practices and pediatric therapy companies about a question that never goes out of style: Is now the right time to sell? Timing matters in every business transaction, and deciding when to sell is no different. In this post, we’ll walk through key considerations that any thoughtful seller should weigh before making the call to sell in 2025.
The best time to sell your practice is when demand is strong and the market is buzzing with active buyers. So, let’s examine whether that still holds true in the ABA and pediatric therapy space.
Is There Demand for ABA & Pediatric Therapy Practices in 2025?
ABA & Pediatric Therapy PE Deal Count by Type:
From 2017 to 2022, demand for ABA practices and pediatric therapy companies grew steadily, but by early 2023, it started to cool off. Several factors likely contributed to the shift.
Rising Interest Rates
When the Fed raises rates from 0.25% in early 2022 to 5.5% by early 2024, capital becomes more expensive, and buyers tend to think twice before making new investments. This environment increases the gap between what sellers want and what buyers can afford. With higher borrowing costs, buyers have smaller profit margins and stricter growth plans. When loan payments are two or three times higher than before, buyers have to account for these costs, reducing how much they can offer.
Rising Costs & Market Challenges
The sector has also been grappling with a sharp increase in labor costs without a corresponding rise in reimbursement rates. Ongoing challenges with Medicaid agencies in states like Colorado have added another layer of complexity. And high-profile events—such as CARD’s bankruptcy sale—haven’t exactly boosted investor confidence.
When uncertainty piles up like this, investors often hit the brakes. But here’s the interesting part—despite the headwinds, we see signs of renewed interest in 2025.
Momentum in Late 2024 and Early 2025: Platform Acquisitions Signal Interest
To close out 2024, Proven Behavior Solutions expanded its footprint by acquiring Prism Autism Education & Consultation, entering a second state. Goldman Sachs Alternatives announced its acquisition of Center for Social Dynamics, a prominent autism therapy provider.
2025 has kicked off with a wave of notable platform acquisitions. Leavitt Equity Partners, Fulcrum Equity Partners, and Western Governors University have invested in Pediatrics Plus, an Arkansas-based provider specializing in pediatric healthcare, offering physical, occupational, speech, and ABA therapy. Meanwhile, Ascend Capital Partners acquired a majority stake in Unison Therapy Services, a youth and family behavioral health provider in Walnut Creek, California.
If this early activity is any indication, there’s still strong demand for high-quality practices with solid fundamentals—businesses that deliver consistent growth, maintain healthy profit margins and have sound operational systems. Buyers are still willing to bet on practices with a proven track record and long-term growth potential.
What’s My Role After the Sale?
Before you even start the sale process, it’s critical to know what role you want to play post-sale. Buyers typically view the owner as a valuable asset—your knowledge and relationships are hard to replace. Many will want you to stay on, whether that’s to help with business development, grow the practice, or provide clinical support.
That said, the less your business relies on you, the more valuable it is to buyers. Buyers will recognize what you’ve built and grown but want to make sure it can run smoothly without you. A practice that operates independently is much more appealing and sustainable.
You know where your strengths lie. If you’re skilled at growing the business—identifying new locations, engaging with vendors, and scaling operations—it’s important to communicate that clearly to your investment bank and potential buyers.
Alternatively, if your expertise is on the clinical side, and that’s where you’re most comfortable, make sure buyers understand how you can continue to add value in that capacity.
Of course, there’s another route—you may decide to fully cash out and walk away. If that’s your plan, keep in mind that most buyers will require a non-compete clause. In other words, you won’t be able to start a competing practice or join a competitor within a specified area for a certain period. If you intend to stay in the industry, you might need to relocate or shift your focus to a different type of work.
Even if you’re planning a full exit, don’t be surprised if the buyer asks you to stick around for a year or two to help with the transition. Smooth handovers benefit everyone involved and can be part of a deal structured for mutual success.
What’s My Role During the Sale?
If you’ve hired a capable investment bank like Healthcare Capital Advisors, your job during the sale is simple: keep running your practice as usual. A well-performing business is far more attractive to buyers than one distracted by the sale process. A growing ABA practice is an even more attractive prospect.
Preparing with your investment bank is crucial to ensure you're in the best position before going to market. Timing is key—sell when conditions are right. Your investment bank should follow a clear, proven process to deliver the best terms, interest, and results for your business.
Your investment bank will handle the following work:
Planning & Preparation: Crafting a sale strategy, preparing marketing materials, valuing your business, and identifying buyers.
Marketing: Reaching out to buyers, distributing marketing documents, and evaluating offers.
Negotiation & Due Diligence: Supporting negotiations, managing the data room, and coordinating due diligence.
Finalizing Terms & Contracts: Negotiating the final deal terms.
Closing: Collaborating with your attorney to finalize the paperwork and close the transaction.
A critical part of this process is due diligence, where the buyer verifies everything about your practice—financials, legal standing, operations, and more. This typically begins after signing a letter of intent (LOI) and takes, on average, more than 90 days. Think of due diligence as a buyer asking to look under the hood of your car before driving it off the lot. If everything checks out, the deal moves to signing the purchase agreement.
Your role during this phase is crucial: keep the business running smoothly. A well-managed, profitable practice is your best negotiating tool.
How Do I Start the Sale Process?
The first step, plain and simple, is for your investment bank to sit down with you and really dig into the strategy. They need to understand the nuts and bolts of your business—why you’re selling, what your goals and terms look like, who the right buyer might be, what your future entails, and how your tax situation fits into the puzzle. Once they’ve got a clear picture, they should lay out a game plan to put you in the strongest position possible for the sale. That could mean bringing in a third party to handle a Quality of Earnings review, tightening compliance and legal matters, or addressing anything else that adds value and reduces risk. The idea is to be thorough and thoughtful upfront so you’re set up for success when it’s time to make the deal.
The next step in selling your practice is straightforward: gather the right information. This information serves two purposes—creating marketing materials for potential buyers and populating the data room, where serious buyers review your company’s documents.
At a minimum, here’s what you’ll need:
Financial Information
Profit & loss statements and balance sheets for the past few years
Monthly financial statements for the last few years
Federal, state, and local tax returns for the past few years
Payroll records
Bank statements and reconciliations
Operational Information
Patient and employee census
Billable hours by service type
Organizational chart
Record of audits (completed and scheduled)
Insurance Information
Copies of insurance policies
Historical loss data
Worker’s compensation records
Employee Benefits
Details of benefit plans
Employee manuals and policies
Employment agreements and 401(k) documents
Legal Information
Organizational documents
Contracts
Licenses and permits
Buyers will likely request additional information during due diligence, so staying organized and prepared is key. The easier you make it for buyers to trust what they’re seeing, the smoother the process will be.
Thinking About Selling Your ABA Practice or Pediatric Therapy Company in 2025?
Whether you’re ready to move forward or just want to explore your options, we’re here to help you maximize the value of your business. Reach out to Healthcare Capital Advisors at info@healthcarecapadvisors.com to learn more.
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