Finance Your Chiropractic Practice Acquisition with an SBA Loan

Before approaching lenders or brokers, define your target practice profile: annual collections between $500K–$3M, a diversified payer mix that isn't over-concentrated in personal injury or a single insurer, an associate DC already in place or recruitable, and a lease with at least 5 years of remaining term. Pull your personal credit report — most SBA lenders want a 680+ score — and compile documentation of your liquid assets, tax returns for the past 3 years, and any existing practice financials if you're an operator already. This preparation will dramatically accelerate lender conversations.

Source acquisition candidates through healthcare-focused M&A brokers, state chiropractic associations, direct outreach to practitioners nearing retirement age, or PE platform add-on pipelines. Once you've identified a target, conduct preliminary due diligence on collections volume, patient visit trends, and payer mix before submitting a non-binding Letter of Intent (LOI). The LOI should outline your proposed purchase price (typically 2.5–4.5x adjusted EBITDA for chiropractic practices), deal structure, exclusivity period, and key contingencies including SBA financing approval and satisfactory due diligence.

Not all SBA lenders understand chiropractic practice cash flow. Select a Preferred Lender Program (PLP) bank or non-bank SBA lender with a track record in healthcare practice acquisitions. Provide them with the target practice's trailing 3 years of tax returns, monthly production reports, AR aging summary, and the signed LOI. Expect the lender to spread the financials, calculate practice EBITDA after add-backs, and stress-test debt service coverage at 1.25x minimum. Lenders will also want to understand the transition plan — specifically how patient care continuity will be maintained after the seller exits.

This is the highest-risk stage of the acquisition. Your due diligence checklist for a chiropractic practice should cover: (1) patient visit volume and new patient trends over 36 months, (2) payer mix analysis including insurance vs. cash-pay vs. personal injury ratios, (3) provider credentialing status and transferability of insurance contracts, (4) accounts receivable aging and any outstanding insurance audits or recoupment demands, (5) lease terms and facility condition including X-ray equipment age and calibration records, and (6) verification that the selling DC's compensation has been properly added back to calculate true practice EBITDA. Hire a healthcare-focused CPA and attorney — this is not the place to cut corners.

Once due diligence is complete and the lender has received all required documentation, the SBA loan package moves to underwriting and SBA authorization. During this phase, finalize the asset purchase agreement (most chiropractic deals are structured as asset purchases to avoid inheriting undisclosed liabilities), the seller transition or employment agreement (typically 6–12 months), any seller note documentation, and the non-compete agreement. The non-compete should be geographically and temporally reasonable — typically a 5–10 mile radius for 3–5 years — and must be supported by adequate consideration to be enforceable.

At closing, funds are disbursed, the asset purchase agreement is executed, and the seller typically begins a structured transition period. The first 90 days post-close are the highest-risk period for patient attrition — have a written patient communication plan ready that introduces the new chiropractor, explains the continuity of care, and provides reassurance about staff and facility continuity. If an associate DC is in place, ensure their employment agreement is assigned or renegotiated as part of closing. Notify all insurance payers of the ownership change and begin credentialing the acquiring provider with any insurers where contracts are provider-specific rather than entity-level.