Protect your investment by verifying payor contracts, therapist credentials, billing compliance, and referral source durability before closing on an OT practice.
Find Occupational Therapy Clinic Acquisition TargetsAcquiring an occupational therapy clinic requires scrutiny beyond standard financials. Buyers must evaluate reimbursement sustainability, therapist retention risk, and regulatory compliance history. Clinics generating $1M–$5M in revenue typically trade at 3.5–6x EBITDA, with SBA 7(a) financing available for qualified asset purchases.
Validate the clinic's true earnings power by analyzing reimbursement trends, collections performance, and normalized owner compensation across three years of operating history.
Break down revenue by Medicare, Medicaid, and commercial payers. Flag Medicaid concentration above 40% and document reimbursement rate trends per CPT code over 24 months.
Request 90-day AR aging reports and denial rate data. Healthy OT clinics maintain net collection rates above 95% and AR aging under 45 days.
Identify personal expenses, above-market owner salary, and one-time costs commingled in financials. Reconstruct a defensible EBITDA for valuation and SBA underwriting purposes.
Assess therapist licensure, staff concentration risk, and referral source durability to determine whether the practice's revenue is genuinely transferable post-close.
Verify all OT and OTA licenses are current with state boards. Confirm active credentialing with each major payer and flag any lapsed or pending credentialing that could disrupt billing.
Quantify each therapist's share of total patient volume and billings. If the owner-therapist generates more than 50% of revenue, assess transition feasibility and retention agreements.
Request 24 months of referral volume data segmented by physician, hospital, and school district source. Identify informal relationships that depend entirely on the selling owner.
Uncover billing audit exposure, Stark Law history, and HIPAA compliance gaps before negotiating deal structure, earnouts, and representations and warranties coverage.
Request any prior RAC, MAC, or OIG audit correspondence. Review overpayment demands, corrective action plans, and current billing practices against Medicare therapy documentation requirements.
Engage healthcare counsel to review physician referral arrangements, employment agreements, and any compensation structures that could create post-close federal enforcement liability.
Structure earnouts tied to therapist retention milestones and patient volume over 12–24 months. SBA 7(a) financing with a seller note of 10–15% aligns incentives and supports lender approval.
Well-run OT clinics typically generate 15–25% EBITDA margins. Margins below 12% often signal reimbursement problems, excessive owner compensation, or high therapist wage costs requiring normalization.
Yes. OT clinics are SBA 7(a) eligible. Most deals are structured with 80–90% SBA financing, a 10% buyer equity injection, and sometimes a 10–15% seller note to satisfy lender requirements.
Analyze each therapist's individual patient volume, review signed employment agreements, and document referral sources by origin. Owner-generated revenue above 50% requires a structured transition plan.
Medicaid concentration above 40–50% of revenue increases risk significantly due to state-level rate cuts and slower reimbursement cycles. Strong commercial payor penetration improves valuation and lender comfort.
More Occupational Therapy Clinic Guides
DealFlow OS surfaces targets with seller signals and motivation scores — so you know before you start diligence. Free to join.
Start finding deals — freeNo credit card required
For Buyers
For Sellers