Overview of Outpatient Rehab Markets

• In the U.S., there are approximately 38,000 outpatient therapy clinics. The sector is highly fragmented, with no one single company is controlling more than 10% of the market.
• Independent operators with one to four clinics make up the majority of the outpatient physical therapy market.
• The largest outpatient physical therapy chains are either publicly traded companies or backed by private equity funds and are well capitalized with a mandate to grow as quickly as possible.
• The large supply of smaller independent practices and the significant amount of capital available for acquisitions has resulted in an increase in the number of acquisitions in the sector as the larger consolidators employ a roll-up strategy. 
• However, as more private equity funds make investments and the number of available platform opportunities decreases, the competition for chains with 10+ clinics is increasing and causing valuations to increase.
• In order to entice chains with 10+ clinics to join an existing platform and to ensure that incentives are aligned and employees remain motivated, some of the larger consolidators are acquiring a majority of the equity of 10+ clinic chains and allowing the current owners to roll equity into the larger consolidator for a large generous second liquidity event in the future. 
• Specific data about competitors and your market as well as EBITDA multiples being paid for platforms is available upon request.