What is the average EBITDA multiple for PT clinics?

PT has been one of the busier healthcare M&A segments since 2018, but no association or index publishes physical therapy transaction multiples the way ADA publishes dental economics data. What exists is estimates from the M&A advisory firms working the sector. We build on Breakwater M&A because it segments by adjusted EBITDA, which is the number a multiple actually gets applied to, rather than by revenue. Its 2026 table runs: $150K to $500K at 2.5–4x for a single owner-operated location, $500K to $1M at 4–6x once a professional manager is in place, $1M to $3M at 5–7x for a platform practice with a regional footprint, and $3M+ at 6–8x+ for a roll-up or consolidator target. Breakwater sums the market up as "2.5x to 8x EBITDA" in 2026. Note where that table starts. Below $150K of adjusted EBITDA there is no published band at all, and the honest answer for a clinic that small is that nobody publishes a multiple for it. Peak Business Valuation states that "EBITDA multiples for physical therapy practices typically range from 3.0x to 6.0x EBITDA" and puts SDE multiples at 2.0x to 4.0x. Peak publishes no breakdown by practice size, so 3.0x to 6.0x is a whole-market range and not a single-location band; use it as a sanity check on the middle of Breakwater's ladder. Breakwater, citing WebPT industry analysis, also reports that the average PT EBITDA multiple over the past five years has been 3.6x. That figure reaches us second-hand, and so does Breakwater's second table, the one cut by owner dependency rather than by size, which Breakwater footnotes as "based on Scope Research 2025 analysis and WebPT industry data." On reimbursement: the Medicare conversion factor fell -0.82 percent in 2022, -2 percent in 2023, and -3.4 percent in 2024, schedule-wide cuts to the physician fee schedule rather than PT-specific ones, though therapy codes took them along with everything else. CMS finalized the first conversion-factor increase in five years for CY 2026, and buyers still underwrite reimbursement risk. Medicare exposure above 50 percent is the discount factor owners most often underestimate, and pelvic health and neuro clinics with a diversified commercial payer mix price higher. Cash-pay sports medicine clinics are described as pricing above Medicare-heavy general PT, though no source we could verify puts a number on that spread. Regional roll-ups continue acquiring single and two-clinic owners. To see where your clinic lands on Breakwater's ladder, run your numbers in the PT valuation calculator before you take any offer seriously. It subtracts the cost of replacing your own clinical hours, which is the adjustment most single-location owners miss.

Work out your adjusted EBITDA

The multiples above apply to normalised earnings, not to revenue and not to the profit on your P&L. This calculator works that number out: your compensation added back, the market cost of covering your clinical work taken off, plus add-backs you can evidence. It shows every step and applies no multiple of its own.