The Dave Kittle Show

As  a private practice owner, you might have some ideas of what your business is worth, but how do you make sure you’re getting the fair price for it? What do you think about when considering your practice's value? How do these perceptions affect the buyer’s willingness to pay for the offer rendered during an evaluation period? 

This week's The Dave Kittle Show episode, Dave Kittle goes solo and talks about the important financial factors that come into play when determining the value of a physical therapy practice, and how to determine if it's worth selling. Dave also talks about how to assess the value of a physical therapy clinic from evaluating its assets and liabilities to considering its current state of affairs, so that when you're ready to sell, you'll know exactly what to ask for in return. 

In this episode, he will touch on such topics as:

• If you're looking to sell your practice, there's going to be different buyers and some of the buyers are going to have different levels of risk and different resources behind them and they're going to value practices differently.
• Having additional factors will be what swings the value of your practice. 
• Physical therapy practices across the country will typically sell for a multiple of EBITDA, anywhere from three times to four or five times.
• Physical therapy practices are not measured one-to-one with revenue.  
• If you believe your private practice has banked a lot of growth because of hiring and delegation and automation and systems you put into place, and you believe it's going to be 2 million in revenue in the next 12 months, and you could be paid on that.  
• As practice owners, the offers are whatever the market is telling you it's worth. 
• You might increase your potential sale by having additional factors that are changing positively of this transaction of your physical therapy practice.

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Are you thinking about selling your physical therapy practice and might be wondering what the broker's commission is and how it affects the sale of your business? How will you know that a broker is working in your best interest when they can't forego their commission?

This week's The Dave Kittle Show episode, Dave Kittle goes solo and talks about the different fees associated with the broker’s commission and how much a usual broker can charge for their service, as well as the commission factor that would help you increase your potential sale.

In this episode, he will touch on such topics as:

• The commission that the broker charges is tied directly into the selling price of the practice.
• When selling your physical therapy practice, brokers typically get paid a commission in two ways: retainer fee and/or valuation fee.
• The broker is supposed to represent the best interest of their client (you) but also work their hardest to get the best price for their client who is willing to purchase your practice (buyer).
• Some brokers and advisors in different companies and firms have additional fees. This could be a brokerage fee, a listing fee, an advertising fee, and a marketing fee, if they're putting it on their website.
• Brokers can help drive the price up on the valuation and the offer of your practice in a bidding war, especially if you hire an expert.
• Expert brokers might get you to the purchase price higher than you would've gotten with other brokers or advisors potentially.
• The double layman scale is a sliding scale, meaning the percentage of commission drops the higher your sale price rises.

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Healthcare is more than just about medical care, it’s about the patients and their experiences. How could you make the patient’s experience of going to the doctor less stressful, or even pleasant? How will you keep your practice more efficient, while still keeping your patients' best interests at heart? 

This week's The Dave Kittle Show episode, Dave Kittle will be joined by Rafi Salazar. Rafael Salazar II, MHS, OTR/L is an occupational therapist and private practice owner of ProActive Rehabilitation & Wellness in Augusta, GA. And, Rafi is also the principal owner of Rehab U Practice Solutions https://rehabupracticesolutions.com/. 

Check out his podcast, where he’s the host of The Better Outcomes Show at www.betteroutcomes.show 

New book launch:Better outcomes: A Guide To Humanizing Healthcare  

We will touch on such topics as:

• When you're a PT or OT, you learn to love the people you help. You learn that every person you come into contact with has a story and needs care in their own way, so you can be the best for them.
• How can you develop a framework that allows clinicians the ability to make that relationship and build that relationship with a prospective patient or client.
• The patient or client needs to understand from the beginning that what they're getting is something of value. It's not just about selling, but about communicating the value that you provide.
• The physical environment of the clinic is important for patients, who may be uncomfortable in new surroundings and unfamiliar with their surroundings. A comfortable environment helps patients feel more relaxed and at ease.
• Delivering a standard of care that leaves the patient feeling, known, heard, listened to, and valued, which is super important for the engagement and retention side of things.
• Patient satisfaction is a huge factor in whether or not people will come back to your practice or recommend you to friends and family.
• The standard of care you deliver is just as important to the patients' health as their treatment.
• It's important to know how satisfied patients’ are with the care they receive in order to make sure that you're helping your clients to get the best results from their treatment.
• How will you keep your practice more efficient to make sure your patients are satisfied with their care?    

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As a physical therapist, how will you expand your scope of services in order to help more people learn how to stay fit even if they're not able to go outside very often due to weather conditions or other factors like limited mobility? What if acquiring a business will allow you to expand your physical therapy service without having to wait for appointments or share space with other therapists?

This week's The Dave Kittle Show episode, Dave Kittle will be joined by Dr. Brett Scott. Dr. Brett Scott founded Barbell Therapy & Performance in 2017. After working as a strength coach and personal trainer for seven years throughout his college career, Dr. Scott realized something was missing in the traditional physical therapy model during his clinical rotations. While working in the traditional physical therapy setting, he realized he didn’t have the time and resources to get his patients the best outcomes because profit and proficiency from a business standpoint surpasses patient outcomes.

Learn more about Dr. Brett in his websites https://barbelltherapyandperformance.com/ and https://arkitectfitness.com/

We will touch on such topics as:

• You can help your patients by coaching them in fitness activities they can do at home on their own time. This will allow them to maintain their health independently while also increasing their independence in other areas of life.
• The gap on how physical therapists are becoming more and more like personal trainers, but with a license to use specific modalities.
• Physical therapists who work for an insurance company will have access to more resources than those working in private practice; however, they may have less freedom when it comes to setting prices or scheduling appointments.
• Gym-based physical therapists may offer more options for treatment because they have access to equipment that is not available in most private practices.
• If you want to acquire a business, it's important to have the same training model and the same training beliefs with the owner so you can fully scale the business on your own.
• Finding a good steward to continue the legacy and the reputation that the founder, that the original owner built is a huge consideration for, for someone that's gonna sell something.

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Connect with him on:

Email: [email protected]

Instagram: @davekittle

LinkedIn: https://www.linkedin.com/in/davekittle/

or

Call (646)-781-8884

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In order to make the best deals, how do you communicate clearly and effectively with your buyer to close the deal? How can you make sure that your buyer feels heard and respected, even if they have different needs than you do? And how can you resolve conflicts when they crop up?

This week's The Dave Kittle Show episode, Dave Kittle will be joined again by Todd Russell, DDS and this time, with Chris Vandiford. Dr. D. Todd, is the founder and CEO of Empire Dental Arts, a successful dental partnership organization based in Northeast Ohio. He is an award-winning dentist and executive leader with 30+ years’ experience driving best practices across strategic practice operations and patient care. He is adept at identifying and executing disciplined operational and business strategies across dental facilities management, clinician teams, patient care, and organizational visioning. Chris is a 20+ year dental transition consultant, bringing buyers and his experience to your dental transition. Chris completes successful dental transitions by aligning the seller with the right buyer every time. Chris Vandiford will also guide the attorneys, CPA’s and bankers to cross the dental transition finish line together.

We will touch on such topics as:

• Have a good understanding of what’s driving the transaction, because many times people believe that transitioning is like buying a used car or house.
• Getting to know the seller, what kind of individual he is, what his personal issues are, what his struggles are, gets you a better path forward on who the right buyer is.
• Being ethical and knowing the career path makes the buyer want to buy from the seller.
• The first appointment and the first meeting is so important. It sets the tone for the relationship of the buyer and the seller.
• How to balance the communication style with the buyer.
• Your job as a seller is to become the best ally and give all the resources to the buyer.
• You can get along with the buyer-seller relationship because of transparency.
• Have the best team and be that's okay to pay for it. You don't wanna get overcharged by an hourly rate for someone to move a comma or a semicolon, but you're paying someone for their experience and their ability.
• The market determines the most part of the valuation.

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Connect with him on:

Email: [email protected]

Instagram: @davekittle

LinkedIn: https://www.linkedin.com/in/davekittle/

or

Call (646)-781-8884

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If you are a physical therapy practice owner, who is on the edge or on the fence about selling or transitioning your business, what are your reservations about selling your practice and what are the market drivers you will outlook in order to maximize the profit potential? What are the factors that will allow you to sell your practice as easily as possible and in terms of price and valuation?

This week's The Dave Kittle Show episode, Dave Kittle will be joined again by Michael Piekutoski. Michael Piekutoski is a Physical Therapist and the Founder, Advisor/Consultant at PT Practice Sales & Consulting. He’s been in the PT world for decades and, among many roles, was the VP of Operations for a national PT company. And, now, he helps therapy practice owners with the start of their exit planning and succession planning all the way through finding buyers, conducting negotiations, and getting owners top dollar for their practice. Mike has completed over 50 PT transactions for over $115 Million in value.

You can learn more about Mike and his firm’s services at physicaltherapybrokers.com or you can email him at [email protected].

We will touch on such topics as:

• How to embrace this economic instability in terms of buying and selling your private business practice.
• When the economy's not doing well, it will have an impact on deal structures, deal making, whether or not it seeps into our industry.
• There are two drivers of deal making: The rising interest rates and recession risk.
• Understanding how to address labor issues with an on-demand workforce can be difficult.
• It is important for practice owners to focus on the environment more than anything else. It’s really important to focus on managing the margins, keeping the people happy, keeping them engaged, and doing whatever they can to make sure that their reimbursement remains steady, or if there are ways to improve.
• The physical therapy market has been booming and this is great news for any active investor. If you are planning to get out on the market and sell your own business then this is also very good news to you.
• Remember that the buyer is competitive with their valuations, their multiples and their deal terms to successfully navigate through a process and close a deal.
• Physical therapy is not going anywhere. It may evolve depending on how the service is delivered due to the technology, but the need for qualified clinicians is growing. 

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Connect with him on:

Email: [email protected]

Instagram: @davekittle

LinkedIn: https://www.linkedin.com/in/davekittle/

or

Call (646)-781-8884

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Are you a physical therapist who is ready to sell your business practice? But how would you sell your practice in a way that doesn't rely and depend on you? How are you going to transition your practice in a way that once you sell it the buyer won’t need your services to treat the patients?

This week's The Dave Kittle Show episode, Dave Kittle will be joined by Stephen Dunn. Stephen has been a physical Therapist since 1998, and a co-owner of Core Therapy and Pilates down in Austin, Texas.

We will touch on such topics as:

• How to keep your business practice afloat in a recession and during the pandemic to be able to sell it at a higher price.
• Rather than treating your business as a patient, you should be looking for ways to shift your priorities to treat the business.
• As a physical therapy practice owner, you have to find ways to reach and treat more patients with the transition of your physical therapists. That's why you need to expand your marketing strategies if you want to stay afloat in this industry.
• If you want to sell your business and you want to walk away, then you need to transition the business before you sell it in order to maximize the value and the price without depending on you.
• You have to start systemizing and getting the work in place before you sell it to the buyer.
• Business books are one of the best resources to turn to when you have questions about your future, career, and business.
• Real estate was one of the most secure investments especially during the recession.
• Self-storage vs residential real estate

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Connect with him on:

Email: [email protected]

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or

Call (646)-781-8884

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If you're a physical therapist, you've probably heard that the business of physical therapy is booming. But did you know that the vast majority of physical therapy businesses won't sell? How can you let the buyer understand what they are looking for and position yourself as the ideal buyer for your business?

This week's The Dave Kittle Show episode, goes solo and talks about why most physical therapy businesses will not sell, and how these reasons are often not addressed when conducting the initial business selling plan. How can you avoid the pitfalls and understand what drives the intended customer's decision process?

We will touch on such topics as:

• Many sellers set an asking price that does not reflect the real value of the business. What's worse (for both the seller and buyer) is that most sellers and buyers don't know how to ask this question in a way that will get them the honest answer they need. This can lead to a bad sale or purchasing a business at the wrong price and then trying to fix it afterwards.
• The buyer's expectations around the value of your business tend to be quite unrealistic, primarily due to their lack of understanding of how the business' EBITDA actually works.
• Owners who negotiate on their own without advisors or without legal counsel.
• Putting too much weight into goodwill or intangible assets of the practice rather than the tangible assets of the business.
• The owners wouldn't budge on the price and it became a deal breaker for both the buyer and the seller. 

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Connect with him on:

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or

Call (646)-781-8884

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When a Private Equity-Backed buyer and an entrepreneur are working towards a merger or acquisition, what are the steps both of them take to ensure that they are on the same page and process in selling the physical therapy practice? How can the private equity firm likely have more resources at its disposal and be able to negotiate a better price for the seller?

This week's The Dave Kittle Show episode, Dave Kittle will be joined by Steve Tolger. Steve is the Vice President of M&A and Partnerships in Alliance Physical Therapy Partners.

Learn more about Alliance Physical Therapy Partners: https://www.allianceptp.com/

We will touch on such topics as:

• Selling your PT business is a big decision. There are a lot of factors to consider, and you want to make sure you're making the right choice for your future.
• The guidance for the buyer along the process so they can feel confident that they're making an informed decision when they buy your practice. By managing their expectations and keeping them updated on every step of the way.
• Building a relationship and being honest and transparent with the business to sell are key to making sales.
• Understanding the whole process of the NDA and protecting trade secrets and other confidential information from being disclosed prematurely, which might happen if someone were to share it without requiring that person to sign an NDA.
• Addressing the LOI and the information needed by the prospective buyer includes what kind of property they're looking for and how much they're willing to spend on it.
• Determining the initial offer is one of the most important tasks in due diligence. This will highlight different information that is required from a prospective practice owner / seller for a prospective buyer in order to generate an LOI. 

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Connect with him on:

Email: [email protected]

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or

Call (646)-781-8884

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When an acquirer “acquires” your practice, they are purchasing certain things. How would you determine where your practice values are so you can improve it before an acquirer decides to buy it? What are the most common deal structures for doctors who want to sell, and the common elements of a practice that are most attractive to buyers?

This week's The Dave Kittle Show episode, Dave Kittle will be joined by Ted Leverette. Ted, The Original Business Buyer Advocate ®, has consulted with thousands of business buyers and owners on buy/sell, valuation and business improvement since 1974. Since 1993 he has trained professionals in the USA and Canada to use our The Street-Smart Way to Become a Business Consultant™. They independently own and operate their consulting practices.Learn more on the Partner On Call Website: https://partneroncall.com/

We will touch on such topics as:

• The size of the company does not account for the creation of cash flow. It's the employees. Employee talent fuels cash flow.
• In the healthcare industry, it is important to satisfy your customer and satisfy the patient. If you make a profit, the business is valuable and somebody will wanna buy it.
• In this economic recession, businesses are looking for every advantage they can get to ensure their survival.
• If you're talking to an intelligent buyer, and if a seller has an intelligent advisory team, they're pricing their practice to sell, and the buyers are gonna pay a fair price.
• The availability of a pool of employees, it's very narrow because of full employment. So you gotta be careful when you're looking at businesses.
• Spend a lot of time with the current employees who are really good and get them on your team.
• A landlord can actually be a barrier to a deal being consummated.
• The other mistake we see buyers make all the time is they don't negotiate the term of the lease long enough. Not only give them time to pay the acquisition debt, but then sell it for a profit and have a lot more time available for whoever buys it. 

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Connect with him on:

Email: [email protected]

Instagram: @davekittle

LinkedIn: https://www.linkedin.com/in/davekittle/

or

Call (646)-781-8884

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