Thank you, Tom. Tom Carden, Managing Director of Mergers and Acquisitions at Martin Healthcare Advisors, is retiring after 20 years of changing the lives of PT business owners. We tell every owner to plan their exit five years out, so we took our own advice. In this conversation, Paul Martin and Tom look back on the team he built, the outcomes he is proudest of, and what comes next.

In this episode:

0:00 Planning our own exit0:27 Why Tom is retiring now1:24 The team Tom is leaving behind3:13 How Tom and Paul started working together4:11 Proudest moments and client outcomes5:54 Why acquirers know Tom’s name7:19 Walking away from an LOI that felt wrong8:46 What Tom’s impact means to our team9:35 What Tom is looking forward to next10:32 Thank you, Tom

Thinking about your own crossroads, whether to grow or exit? Start with the Outside-In Assessment. Book a call with Paul: https://www.martinhealthcareadvisors.com/outside-in-assessment

Acquirers don’t buy your PT clinics. They buy your cash flow. Paul Martin, Founder and President of Martin Healthcare Advisors, joins host Neil Trickett of Practice Promotions on the Practice Marketing Podcast to explain what acquirers are really paying for, why about 80% of the price is typically goodwill, and why the books have to be clean from day one.

You will also hear how EBITDA multiples change with business size, when to move from a bookkeeper to a fractional CFO, the three month test for owner dependency, and what the market looks like right now for PT businesses.

Chapters
0:00 Acquirers buy cash flow
0:30 Meet Paul Martin
1:16 From 3 clinics to 21
4:20 When to start preparing
6:30 Why waiting until you want out is too late
7:28 Why transitioning to a partner or staff rarely works
9:56 What acquirers are really paying for
15:14 EBITDA multiples by business size
18:02 The bookkeeping mistake that lowers your value
19:30 Bookkeeper, fractional CFO or CFO
23:38 The three month test for owner dependency
25:36 How marketing systems raise your multiple
29:40 Recruiting and retention as a value driver
34:06 The market for PT businesses right now
36:16 What to work on this year
37:40 How to learn more

Talk with Paul: https://calendly.com/mhameetings/30min
Website: https://www.martinhealthcareadvisors.com
Watch on YouTube: https://www.youtube.com/@martinhealthcareadvisors

Is an ESOP a real exit for a PT business owner? Not in the way that matters most: who carries the risk.

In this episode, Paul Martin explains why an exit is an exchange of risk, and why the alternatives to a third party transition leave you holding it.Paul covers ESOPs (employee stock ownership plans), EOTs (employee ownership trusts), staff buyouts, passing the business to your kids, and paying your team more and stepping back. He also explains why a transition to a third party puts the bulk of your value in your bank account at closing, and when it is not the right answer.

00:00 An exit is an exchange of risk

00:58 How a third party moves the risk

02:12 ESOP: price, cost and the money

05:40 EOT: employee ownership trust

07:33 Staff buyouts: who funds it

10:35 Passing it to kids, or stepping back

11:57 The options side by side

13:03 See your real numbers

Want to see what each option would pay you, and how much risk you would still carry? Book a call with Paul: https://martinhealthcareadvisors.com/book-a-call

Paul Martin is Founder and President of Martin Healthcare Advisors. He grew his own PT business from three clinics to 21 and transitioned it in 1996, and has advised PT business owners for over 27 years.

Paul Martin, Founder and President of Martin Healthcare Advisors, is leading an Ask The Expert Session at the APTA Private Practice Annual Conference. Bring your questions on succession planning and the real risks and rewards of each option for PT business owners.

Friday, November 13 · 2:00 PM · Broadmoor Hall E
Visit Martin Healthcare Advisors at booth 907.

Thinking about growing your PT business, or what comes after? The NEXTLEVEL Owner is a podcast for physical therapy business owners, hosted by Paul Martin, Founder and President of Martin Healthcare Advisors.

Paul grew his own PT business from three clinics to 21 and transitioned it to a larger company in 1996. He then founded Martin Healthcare Advisors in 1999 to help PT owners grow, prepare, and exit with the best partner and the best terms.

On the show, Paul talks with PT business owners and the leaders of the companies acquiring them. You’ll hear what buyers look for, the mistakes that cost owners the most, and how to make informed decisions early.

Follow The NEXTLEVEL Owner on Spotify so you never miss an episode.

Learn more: martinhealthcareadvisors.com

Most PT business owners have heard the advice: build a business that can run without you. If you own multiple clinics, that's the wrong question. In most of today's larger transactions, the owner isn't going anywhere. Acquirers want you to stay three years or longer. So the real question is: when a partner walks in the door, do they have to build the leadership around you, or is it already there?In this episode, Paul Martin uses lessons from football, from Bill Walsh's 49ers to Nick Saban's coaching tree to the Steelers' three head coaches since 1969, to show how great organizations build leadership that wins year after year. Then he shares three steps to build that same leadership in your PT business: own the roles, write down your systems, and build your bench.

Chapters

0:00 The owner isn't going anywhere

1:40 The question acquirers really ask

2:20 Your business as a football team

3:53 Bill Walsh's Standard of Performance

5:00 Nick Saban and the coaching tree

6:00 Steelers: 3 coaches since 1969

6:50 Chiefs, Eagles and the best leadership

7:52 Takeaway 1: Own the roles8:24 Takeaway 2: Write down your systems

8:48 Takeaway 3: Build your bench

9:16 Keep it or partner, it pays off

Have a question about your leadership team or where your business stands today? Book a call with Paul: https://calendly.com/mhameetings/30min

Watch the video on YouTube: https://www.youtube.com/@martinhealthcareadvisors

Also on Apple Podcasts: https://podcasts.apple.com/us/podcast/the-nextlevel-owner/id6806039160

New episodes every Wednesday. Follow the show so you never miss one.

If you're only talking to private equity backed acquirers, you may be missing a new type of acquirer in physical therapy: the family office. One has done five transactions in about fifteen months, and it plays by very different rules. In this episode, I break down how a family office compares to a strategic partner backed by private equity, and the three questions that tell you which one fits your transition.0:00 The Acquirer Most Owners Don't Know About0:29 Why PE Backed Strategic Partners Still Work Well1:22 What Is A Family Office?2:25 Five Transactions In Fifteen Months3:45 Difference 1: Time Horizon4:31 Difference 2: Structure4:58 Difference 3: Fit5:34 More Types Of Acquirers Means A Better Outcome6:10 Which Partner Fits You?Wondering which type of partner fits you and your practice? Let's talk: https://calendly.com/mhameetings/30min

Can AI replace your advisor when you transition your PT practice? It's the biggest financial decision most owners will ever make, and too many walk into it as the only person at the table who has never done it before.

I joined Mikulas Zach on Consulting Rainmakers to talk about where AI is already changing PT clinics, how we use it at Martin Healthcare Advisors, and what it still can't do for you. We also cover the timing mistake that catches most owners off guard, and what I think could make a transaction move twice as fast.

If you're thinking about a transition in the next few years, this one's for you.

0:00 Introduction

0:55 From Gettysburg Football to 21 Clinics

2:54 Why MHA Serves Only Physical Therapy

3:57 The Biggest Mistake Owners Make When Selling

4:40 Investment Banker Meets Main Street Broker

8:08 How AI Is Changing PT Clinics

10:11 What Hosting a Podcast Teaches You

12:14 What Drives New Business: Conferences, Referrals, Video

14:17 Advice for Young Entrepreneurs

18:11 Why Exit Planning Starts 7 to 10 Years Out

22:29 Goals for the Next 12 to 24 Months

24:45 Where to Find Paul

Book a call with me: https://calendly.com/mhameetings/30minWebsite: https://www.martinhealthcareadvisors.comLinkedIn newsletter: https://www.linkedin.com/build-relation/newsletter-follow?entityUrn=7501665222571687936Watch on YouTube: https://www.youtube.com/@martinhealthcareadvisors