What Is My Physical Therapy Practice Worth?

Physical therapy practices have attracted significant PE consolidation activity. The recurring nature of patient visits, growing demand from an aging population, and the fragmented competitive landscape make PT practices attractive acquisition targets.

Typical Valuation Ranges

Single-location practices: 2x to 3.5x SDE

Multi-site operations ($1M+ EBITDA): 5x to 8x EBITDA for PE or platform buyers

Factors that push toward the higher end:

• Multiple therapists generating revenue independently
• Multi-location operation with centralized management
• Diversified referral sources
• Cash-pay and commercial insurance mix
• Revenue above $1M with growth trajectory
• Specialized services (sports medicine, pelvic floor, vestibular)

Factors that push toward the lower end:

• Owner treats all patients personally
• Single referral source dependency
• Workers' comp or Medicaid heavy payer mix
• Declining patient volume
• Commoditized general PT services only

Key Value Drivers

Visits per therapist per day: Strong practices average 10–14 patient visits per therapist per day. Below 8 suggests referral or efficiency issues.

Revenue per visit: Varies by payer, but averaging $120–$180+ per visit across payer mix is healthy.

Referral diversification: Practices dependent on a single surgeon or physician group for 40%+ of referrals face concentration risk.

Specialization: Niche specialties (sports, orthopedic, neurological, women's health) support premium pricing and stronger referral relationships.

How to Increase Your Practice's Value

1. Hire therapists. Reduce owner treatment load and grow capacity through employed PTs.
2. Diversify referral sources. Build relationships with multiple physician groups, surgeons, and sports organizations.
3. Add specialization. Specialty certifications (OCS, SCS, WCS) differentiate your practice and justify premium rates.
4. Expand locations. Opening a second or third clinic creates a platform that PE buyers will pay more for.
5. Build direct access volume. Marketing direct-to-consumer reduces physician referral dependency in states that allow direct access.

Browse the valuation multiples guide for industry data, or schedule a free call for a confidential valuation.