Livingstone Physical Therapy Newsletter | Fall 2016

Outpatient physical therapy is experiencing a decade-long M&A frenzy with no signs of abating. In the last 12 months alone, six physical therapy platforms have transacted, 35+ private practices have been acquired, and at least five sizable physical therapy platforms have launched sale processes.

With this significant activity altering the physical therapy landscape – combined with private practices being inundated with in-bound interest from prospective buyers – this newsletter aims to serve as an educational resource regarding the current state of the physical therapy M&A market. Also included herein is a feature on the implications to the physical therapy sector of value-based care and bundled payments.

Livingstone has had a front row seat to industry consolidation, advising on over a dozen sale or refinancing transactions with private practices, strategic buyers, and private equity investors. There has been neither a more compelling nor lucrative time to: (i) take chips off the table while also becoming an industry consolidator through a private equity recapitalization; (ii) pursue a full sale to a strategic buyer; or (iii) fund growth through debt financing. If strategic alternatives are being considered, Livingstone is available to advise through this critical process.