Established Physical Therapy & Chiropractic Practice, 25-Year Florida Clinic

$1.3M

Revenue

$590K

SDE

2.4x

Multiple

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Full Editorial Writeup

This is a 25-year-old outpatient rehabilitation practice in Florida combining physical therapy and chiropractic care, doing roughly $1.3M in revenue with $590K in cash flow. That is a 45% owner-earnings margin, which is strong for a clinical services business and reflects both operational maturity and a favorable payor mix. The clinic delivers a broad menu of services including chiropractic, orthopedic and sports rehab, dry needling, cupping, laser and shockwave therapy, traction, and vestibular therapy, backed by a full equipment package (diagnostic and X-ray machines, ultrasound, laser and shockwave units, chiropractic tables).

The economic engine here is the personal injury mix. Roughly 40% of revenue comes from PI cases, which typically pay at higher rates than commercial insurance and are settled through liens and attorney referral relationships. On top of that, the practice is a licensed Durable Medical Equipment supplier with home medical licenses included, so it captures additional margin by supplying braces and equipment directly to injury patients rather than referring that revenue out.

The business transfers fully staffed with 9 experienced employees and is contracted with major medical payors. It is positioned as a going concern with immediate continuity, and the seller frames three growth paths: deepen the PT rehab side, expand the chiropractic division, or scale the PI segment through targeted marketing and additional providers.

Why we like it

Earnings quality is genuinely strong: $590K cash flow on $1.3M revenue is a 45% margin, which is well above typical PT/chiro comps and signals disciplined cost control plus favorable reimbursement. The 2.37x multiple on that cash flow is cheap for a diversified, 25-year clinical practice with hard assets and licenses included.
The DME supplier license and home medical licenses are a real moat, not marketing language. Being able to supply and bill equipment in-house rather than refer it out adds high-margin revenue and creates a barrier that a new competitor cannot replicate quickly, especially in the injury-treatment lane.
Healthcare rehab is durable through downturns because people still injure themselves, get in car accidents, and need treatment regardless of the economy. Personal injury volume in particular is tied to accidents and litigation, not consumer discretionary spending, so this revenue stream holds up when the cycle turns.
The 25-year operating history and 9-person transferring team mean an owner does not need to be a clinician to hold value on day one. A practitioner buyer gets an established referral base and payor contracts, while a multi-location group gets a clean bolt-on with existing PI attorney relationships.

How to improve it

Audit and expand appointment capacity in the first 90 days by extending clinic hours and filling open provider slots. The listing flags underutilized hours, and every incremental treatment slot in an existing fixed-cost facility drops almost entirely to the bottom line.
Build a formal attorney referral program for the personal injury segment. Since 40% of revenue already comes from PI, systematizing outreach to plaintiff attorneys and standardizing lien documentation could materially grow the highest-margin line without new fixed costs.
Push DME attach rates on every eligible patient. The practice already holds the supplier and home medical licenses, so the marginal work is protocol and training to ensure providers capture equipment revenue rather than letting it walk out the door.
Add a second or third provider to break the single-clinic revenue ceiling. With the facility, equipment, and payor contracts already in place, adding licensed clinicians is the fastest path to scaling revenue against existing overhead.
Modernize patient intake and scheduling with online booking and automated recall for chiro and rehab patients. Recurring rehab and chiropractic care benefits from retention systems, and reducing no-shows directly improves capacity utilization.
Evaluate adding cash-pay wellness and sports rehab packages to diversify away from payor reimbursement risk. The clinic already offers cupping, dry needling, and laser therapy that lend themselves to cash memberships and packaged programs.
Renegotiate or expand payor contracts and add any missing major insurers. A rate review across the existing contracts plus adding underrepresented payors can lift effective reimbursement per visit with no clinical change.

Diligence notes

Scrutinize the personal injury revenue closely, because PI cases are collected on liens and can carry long collection cycles, write-downs, and settlement risk. Pull an aging report and historical collection rates on PI receivables to confirm the 40% mix converts to real cash and is not inflating headline revenue.
Verify the DME supplier license, home medical licenses, and all payor contracts are transferable to the buyer and buyer entity. Healthcare licensing and Medicare/DME accreditation often do not transfer automatically and may require reapplication, which could interrupt that revenue stream post-close.
Assess how dependent revenue is on the current owner as a treating provider. If the owner personally generates a large share of billable visits or holds the key attorney relationships, the $590K cash flow may not survive the transition without a strong non-owner clinician earnout structure.
Confirm compliance and billing integrity given the PI and DME exposure, both of which are heavily scrutinized areas for fraud and abuse. Review a sample of claims, documentation practices, and any prior audits or payor recoupments to understand regulatory and clawback risk.
Break down the 9-person staff by role, tenure, and licensure, and confirm which credentialed providers actually transfer. Get retention commitments or employment agreements for the key clinicians, since the value here depends on the team staying intact.

Source

Originally listed on BusinessBroker.net. View original listing →