Research

Pediatric Therapy M&A Market Update: More Buyers, More Exit Opportunities

If you own an ABA, occupational, physical, or speech therapy practice and are considering a sale—now or in the next few years—the market continues to offer strong opportunities. The latest data confirms that buyers remain active, and the pool of potential acquirers is expanding.

By Luis F. Lopez, Ph.D. President, Mergium Advisors
Pediatric Therapy M&A Market Update: More Buyers, More Exit Opportunities

The Key Message: The Market Is Active and Changing

A total of 42 pediatric therapy practices were acquired in 2025, up 14% from 2024, demonstrating that demand remains strong despite higher interest rates and other industry headwinds.

More importantly, the type of buyer is changing, which is creating more options for owners.

number of ma transactions

Strategic Buyers Are Increasing Competition for Practices

Historically, most buyers were private equity-backed platforms. That is no longer the case.

In 2025:

  • Strategic buyers—established therapy companies—completed 38% of acquisitions, more than double prior years.
  • Private equity firms remain active, but are becoming more selective.
  • This means more potential buyers for your practice, which can improve deal structure, flexibility, and long-term fit.

For owners, this is a major positive shift.

A Large Wave of Future Acquisitions Is Coming

There are currently more than 35 private equity-backed therapy platforms that are reaching the typical exit window.

These firms must eventually sell—and when they do, they often need to continue acquiring smaller practices to grow before exit.

This creates a multi-year pipeline of acquisition demand, benefiting independent practice owners.

Capital Is Still Available for Smaller Practices

Even if you are not ready to sell today, investors continue to fund growth:

  • Nearly half of capital raises were under $5 million, targeting smaller and mid-sized providers.
  • Many practices use this capital to expand before selling at higher valuations later.

This means owners have options: sell now, grow and sell later, or partner with investors.

What Buyers Value Most Today

Buyers are prioritizing quality and stability over rapid growth alone. The practices receiving the strongest interest typically have:

  • Consistent financial performance
  • Stable therapist workforce and low turnover
  • Clean billing and compliance history
  • Multiple payor relationships
  • Professional financial reporting

Size matters—but quality matters more.

What This Means for Owners

The current market offers several advantages:

  • More buyers competing for practices
  • Continued acquisition activity
  • Growing strategic buyer participation
  • Strong demand for well-run providers

However, buyers are more selective than during the peak years. Preparation is critical to achieving the best outcome.

Owners who prepare 1–3 years in advance typically achieve significantly better valuations and deal terms.

Read the Full Article

This summary covers the highlights only. For full charts and a more detailed analysis, read the complete article here:

https://www.mergium.com/post/sale-of-pediatric-therapy-practices-aba-ot-pt-st-2024

Confidential Conversation

If you would like to understand how to value your practice, or what buyers would look for, we would be happy to speak confidentially.

Luis F. Lopez, Ph.D.
President, Mergium Advisors
luislopez@mergium.com
(954) 806-4807
www.mergium.com

All conversations are strictly confidential.

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