The PT Practice Sale Timeline, Stage by Stage
A stage-by-stage look at how long it takes to sell a PT practice, from valuation to closing, and what you need to do at each step.
Most PT owners underestimate how long a sale takes. A typical sale runs about 6 to 12 months from first valuation to closing. Some move faster. Some take longer when records need work or a buyer needs more time.
Here is each stage, how long it usually takes, and what you do during it.
Stage 1: Valuation (2 to 4 weeks)
This is where you learn what your clinic is likely worth. We review your financials, adjust for one-time and owner-specific expenses, and estimate your EBITDA. Then we compare it to the typical ranges we use as a starting point.
For reference, those ranges are 3.0 to 4.5x EBITDA for one location and 4.0 to 6.0x for two to three. Larger groups run higher. These are not guarantees.
What you do:
- Pull three years of profit and loss statements
- Share payroll, visit and payer mix reports
- Answer questions about your expenses and your own pay
- Decide whether the number works for your goals
If the number does not work, you can stop here. Many owners use the valuation to plan a sale two or three years out.
Stage 2: Preparation (1 to 6 months)
This stage varies the most. A clinic with clean books and stable staff may need a month. A clinic with messy records, an expiring lease or a key therapist without an agreement may need six.
What you do:
- Clean up your books with your CPA
- Gather leases, contracts and an equipment list
- Review your lease term and assignment terms
- Address gaps a buyer would flag, such as missing staff agreements
We build the marketing materials during this stage. That includes a confidential summary of the clinic that buyers see only after signing a confidentiality agreement.
Stage 3: In market (2 to 4 months)
This is when we contact buyers. We share a short, anonymous profile first. Interested buyers sign a confidentiality agreement before they see details.
Expect a mix of interest. Some buyers will pass early. Others will ask for more data before making an offer. That is normal, and it is why the stage takes months rather than weeks.
What you do:
- Keep running the clinic as normal
- Join calls or meetings with serious buyers
- Answer follow-up questions with our help
- Review offers and letters of intent with us
Your job here is to protect performance. Buyers watch your monthly numbers during the process. A drop in visits can change an offer.
At the end of this stage, you pick a buyer and sign a letter of intent, or LOI. The LOI sets the price and main terms. It is usually not binding on price, but it starts exclusive talks with one buyer.
Stage 4: LOI to close (60 to 90 days)
This is diligence and the final agreement. The buyer checks everything you told them. Their accountants review your books. Their attorneys review your contracts and lease.
What you do:
- Respond to document requests quickly
- Work with your transaction attorney on the purchase agreement
- Get landlord consent if your lease requires it
- Plan how and when to tell your staff
Slow responses are the most common cause of delay here. Have your documents organized before you sign the LOI.
Your CPA should advise you on taxes. Your transaction attorney should review every agreement. If the buyer uses a lender, the lender's timeline also affects closing.
What slows a sale down
A few issues come up often enough to plan for:
- Financials that do not match tax returns
- A lease that is close to expiring or cannot be assigned
- A key therapist who has not committed to staying
- A drop in visit volume during the sale
Most of these can be fixed in preparation. They are much harder to fix once a buyer has found them.
Your own focus can slip too. A sale takes real time from an owner who also treats patients. Block a few hours each week for sale work. Protect your clinical schedule and your team's routine. A clinic that runs smoothly during the sale gives buyers fewer reasons to renegotiate.
Your next step
Count backward from when you want to be done. If you want to close in twelve months, your valuation should happen this month. Start by pulling your last three years of profit and loss statements.