Your Practice Sale Starts Years Before You Sell

Your Practice Sale Starts Years Before You SellMost 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 flowWhat EBITDA means in a PT practiceWhy historical success alone doesn’t determine valueThe importance of demonstrating future growthHow financial preparation affects a transactionWhy leadership alignment mattersThe operational KPIs buyers examineCharge capture and proper codingProductivity versus complianceSchedule managementPT/PTA team modelsThe danger of a practice depending entirely on its ownerPaul’s “30-day test”Why larger practices often command higher multiplesHow Paul went from three clinics to 21Why systems and processes allow businesses to scaleThe difference between an owner’s perceived valuation and actual valuationWhy Paul believes PT continues to provide extraordinary healthcare valueOne Question Every Owner Should AskImagine 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 AdvisorsWebsite: https://www.martinhealthcareadvisors.com/LinkedIn: https://www.linkedin.com/in/paulmartinsview/YouTube: https://www.youtube.com/@martinhealthcareadvisorsBook MentionedBuilt to SellJohn Warrillow