
Most physical therapy practice owners think about selling their business when they’re ready to sell.
Paul Martin thinks that’s already too late.
Paul is a physical therapist, founder of Martin Healthcare Advisors, and former clinic owner who helped grow a three-clinic operation into 21 locations.
After decades working with PT practice owners, he says one mistake appears again and again:
Owners treat selling their practice like an event.
It isn’t.
It’s a process.
And according to Paul, the owners who begin preparing several years before a transaction have far more opportunities to improve the company, reduce risk and increase its potential value.
Jimmy and Paul unpack what buyers actually look for when evaluating a PT business.
In This EpisodeThey discuss:
- Why buyers care about cash flow
- What EBITDA means in a PT practice
- Why historical success alone doesn’t determine value
- The importance of demonstrating future growth
- How financial preparation affects a transaction
- Why leadership alignment matters
- The operational KPIs buyers examine
- Charge capture and proper coding
- Productivity versus compliance
- Schedule management
- PT/PTA team models
- The danger of a practice depending entirely on its owner
- Paul’s “30-day test”
- Why larger practices often command higher multiples
- How Paul went from three clinics to 21
- Why systems and processes allow businesses to scale
- The difference between an owner’s perceived valuation and actual valuation
- Why Paul believes PT continues to provide extraordinary healthcare value
Imagine telling your staff:
“I’m leaving tomorrow. I’ll be gone for 30 days, and you cannot contact me.”
What happens?
If the clinic falls apart, Paul argues that you may not own a transferable business yet.
You may own a job.
Paul MartinFounder, Martin Healthcare Advisors
Website:
https://www.martinhealthcareadvisors.com/
LinkedIn:
https://www.linkedin.com/in/paulmartinsview/
YouTube:
https://www.youtube.com/@martinhealthcareadvisors
Book MentionedBuilt to Sell
John Warrillow
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