Selling a physical therapy practice is not the same as selling a general service business. Payer contracts must be re-credentialed, PT licenses need to transfer, and the clinical staff's willingness to stay post-sale determines whether the revenue holds. A physical therapy practice broker who understands these dynamics will get you a better outcome than a general business broker who does not. This guide covers what PT brokers do, what they cost, and the questions that separate a specialist from someone who has listed two therapy practices before.
What a Physical Therapy Practice Broker Does
A PT practice broker manages the sale process from valuation through close. Their specific responsibilities:
Valuation and pricing. Setting an asking price that reflects current market multiples, your payer mix, your patient retention rate, and your PT staff depth. A broker who only knows general business valuation will miss the payer-specific EBITDA adjustments that matter for therapy practice pricing.
Buyer sourcing. Identifying qualified buyers — PE-backed rehabilitation groups, hospital systems acquiring outpatient clinics, and SBA-financed individual PTs. Generalist brokers have limited access to the clinical PE buyer pool. Specialists have existing relationships.
Diligence management. Running the data room, fielding buyer questions about payer contracts, credentialing requirements, and PT license transferability. Managing the timeline from LOI to close with a lender or PE buyer who has therapy-specific due diligence checklists.
Negotiation. LOI negotiation, earnout structure, post-close employment term, and non-compete agreement. These are highly negotiated in PT deals because the clinical staff and the seller's relationships are central to the buyer's thesis.
For PT exit multiples and deal structure detail, see the physical therapy practice valuation multiples guide.
What PT Practice Brokers Charge
PT practice broker fees follow a percentage of transaction value structure, typically:
| Transaction Size | Typical Broker Fee | Fee Structure |
|---|---|---|
| Under $500K | 10%–12% | Success-only, sometimes retainer |
| $500K–$2M | 8%–10% | Success-only |
| $2M–$5M | 5%–8% | Success-only or hybrid (retainer + success) |
| $5M+ | 3%–5% | Retainer + success (Lehman-style) |
Most PT brokers work on a success-only basis for practices under $2M — meaning you pay nothing unless a deal closes. For practices above $2M, a small retainer ($5,000–$15,000) combined with a lower success fee is increasingly common, especially for brokers who invest significant time in buyer marketing and data room preparation.
The right question is not "what is the lowest fee" but "what is the net proceeds after fees at the multiple this broker can achieve?" A broker who charges 8% but achieves 5.5x EBITDA produces better seller outcomes than one who charges 6% but closes deals at 4.0x.
For the full PT practice sell process and what to expect from a broker engagement, see the how to sell your physical therapy practice guide and /sell/physical-therapy-clinic.
PT Valuation Multiples Brokers Use as Benchmarks
PT practice brokers set asking prices based on current transaction data. For context:
| Practice Profile | EBITDA Multiple | Notes |
|---|---|---|
| Solo PT, owner-treating | 2.5x–3.5x | Owner dependency discount |
| 2–3 PT staff, single clinic | 3.5x–5.0x | Transferable revenue |
| Multi-clinic, systemized | 5.0x–7.0x | PE platform target |
| Medicare/Medicaid heavy | -0.5x to -1.0x | Rate risk discount |
| High commercial payer mix | +0.5x to +1.0x | Rate premium |
A qualified PT broker will present your practice's payer mix breakdown, patient visit volume, and therapist utilization rate to buyers alongside the financial statements. These clinical metrics are as important as the P&L in determining what a buyer will pay.
For current PT comparable transaction data see the physical therapy practice broker directory.
Valuation Estimator
Get a free directional value range for your PT practice before engaging a broker.
Estimate your PT practice value →How to Choose a Physical Therapy Practice Broker
The questions that matter when evaluating a PT practice broker:
How many PT or therapy practice transactions have you closed in the last 24 months? The right answer is at least 3–5. Brokers who cannot name specific closed transactions are generalists learning on your deal.
Who are your typical buyers? Qualified PT brokers have relationships with PE-backed rehabilitation platforms, hospital systems, and SBA lenders who specialize in healthcare acquisitions. If a broker's buyer list is dominated by individual buyers from LinkedIn, they lack institutional buyer access.
Do you handle credentialing transition? Payer credentialing for the new entity is one of the most operationally complex parts of a PT transaction. Some brokers coordinate this; others leave it entirely to the buyer's counsel. Know what you are getting.
What is your average time to close? The industry range for PT practice transactions is 4–10 months from engagement to close. Brokers who promise 60-day closes for practices above $1M are either overconfident or inexperienced with PE buyer timelines.
Can I speak with three recent sellers? Any broker with a track record will have references. Reluctance to provide them is a red flag.
When to Hire a PT Broker vs. Going Direct
There are scenarios where a PT practice broker adds unambiguous value and scenarios where you can reasonably navigate without one:
Hire a broker when: Your practice is above $500K EBITDA, you want to run a competitive process with multiple buyers, you have not sold a business before, or you want a post-close consulting arrangement rather than a clean departure.
Consider going direct when: You already have a specific buyer identified — a colleague, a hospital system that has expressed interest, or a PE platform that has approached you directly. If a buyer comes to you unsolicited and you trust the relationship, a healthcare M&A attorney may be sufficient without a full brokered process. You will still want independent valuation support to avoid accepting below-market terms.
Hybrid approach: Some PT practice owners hire a broker on a limited engagement — valuation report only, or a 90-day exclusive with a specific buyer pool — rather than a full exclusive brokerage. This can work for experienced sellers with existing buyer relationships.
For the full physical therapy exit valuation and preparation guide, see the physical therapy practice exit valuation guide.
Frequently Asked Questions
How much does a physical therapy practice broker charge?
PT practice brokers typically charge 8%–12% of transaction value for practices under $1M and 5%–8% for practices in the $1M–$5M range. Most brokers work on a success-only basis — you pay nothing unless a deal closes. For larger practices above $2M, a hybrid structure (small retainer plus lower success fee) is increasingly common.
What does a PT practice broker do that a healthcare attorney cannot?
A broker sources qualified buyers, sets the asking price based on current market comparables, runs the marketing process, and negotiates on your behalf before you need legal counsel. An attorney handles the legal documentation, contract review, and closing mechanics. You typically need both — the broker to find the buyer and set terms, the attorney to execute the documents. Engaging an attorney without a broker means you are responsible for finding your own buyers.
How long does it take to sell a physical therapy practice?
Most PT practice transactions take 6–12 months from broker engagement to close. The timeline includes 1–2 months for marketing and buyer identification, 2–4 months for LOI negotiation and diligence, and 2–3 months for payer credentialing and legal close. PE-backed acquisitions move faster than SBA-financed transactions but require more extensive diligence.
Can I sell my PT practice if I am the only treating therapist?
Yes, but at a lower multiple. A solo-PT practice is highly owner-dependent — buyers discount this by 0.5x–1.5x EBITDA compared to practices with multiple licensed PTs on staff. Some buyers will negotiate a longer post-close consulting period to maintain patient volume during the transition. The highest-leverage preparatory action is hiring a second PT 12–18 months before selling and transferring patient relationships.
Should I use a general business broker or a healthcare-specific PT broker?
A healthcare-specific PT broker is strongly preferred. PT transactions involve payer credentialing, PT license transfer, CMS provider number assignment, and clinical staff continuity — issues that a general business broker may not recognize as deal-critical. A general broker who has not navigated credentialing transition in a therapy practice will cost you time and potentially kill deals during diligence.
The right PT practice broker accelerates your timeline, accesses institutional buyers you cannot reach on your own, and earns their fee by achieving a multiple that a self-represented sale cannot. The wrong one costs you time and introduces buyers who cannot close. The questions above separate the two. Get three references, ask for closed deal names, and hire the specialist.
List Your Physical Therapy Practice
DealFlow OS connects PT practice sellers with PE platforms, regional therapy groups, and qualified individual buyers.
Get StartedAcquisition Guide
Ready to buy a Hypnotherapy Practice business? See EBITDA multiples, deal structures, SBA eligibility, and active targets in our full buyer guide.
Hypnotherapy Practice Acquisition Guide