12 Things to Prepare Before Selling Your Speech or Occupational Therapy Clinic
Financial Preparation
Years of Clean Financials
Profit & Loss statements, balance sheets, and cash flow statements—organized and ideally CPA-reviewed.
Separate Personal Expenses
Remove non-business/personal costs (like family cell phone plans, personal travel, etc.) to present accurate earnings.
Calculate SDE or EBITDA
Work with a financial advisor to calculate the Seller’s Discretionary Earnings or EBITDA and identify add-backs.
Track Key Metrics
Have ready: Revenue by service line, therapist productivity (revenue/FTE), payer mix, and Days Sales Outstanding (DSO).
Operational Readiness
Document SOPs (Standard Operating Procedures)
Create simple, step-by-step guides for scheduling, intake, billing, and clinical workflows.
Organize HR & Licensure Docs
Make sure all therapist licenses (SLP, OT, PT) are current and employment contracts are documented.
Build a Leadership Bench
Identify or train a second-in-command who could lead operations post-sale (clinic manager, lead therapist, etc.).
Reduce Owner Dependency
Ensure day-to-day operations can run smoothly without your constant oversight.
Legal & Administrative
Verify Compliance
Confirm HIPAA compliance, Medicaid/insurance billing accuracy, and state licensing are all up to date.
Review Lease Terms
Understand lease expiration, assignability, and whether renewal terms are buyer-friendly.
Audit Insurance Policies
Ensure liability insurance, malpractice coverage, and workers’ comp policies are current and sufficient.
Strategic Planning
Explore Deal Structures
Learn about asset sales, seller financing, earnouts, and transition agreements to prepare for buyer conversations.
