How to Value a Physiotherapy Business in the UK

Whether you're exploring a sale or simply want to understand the value of what you’ve built, it's important to recognise what really drives value in a physiotherapy business. While EBITDA (earnings before interest, tax, depreciation and amortisation) remains the foundation for most valuations, acquirers are looking beyond the numbers.

In this post, we outline the key factors that influence the value of UK physiotherapy businesses, common valuation multiples across the sector, and what different types of buyers are looking for.

Key Drivers of Value in UK Physiotherapy Businesses

1. Scale

Larger physiotherapy groups typically attract higher multiples. They offer operational efficiency, greater reach, and a more meaningful platform for acquirers. A business generating £2m of EBITDA is in a very different league from a single-site operator generating £200k.

2. Founder Reliance

Buyers will assess how dependent the business is on the current owner. If clients or key contracts are closely tied to the founder, it introduces risk, and that risk is typically priced in through a lower multiple or a larger deferred element.

3. Geography

Location matters, particularly for private pay services. Clinics in affluent areas with strong local demographics are more attractive due to higher fee potential and consumer demand. For NHS or occupational health contracts, geography is less relevant but catchment area and competition still factor in.

4. Service Mix

Physio businesses tend to fall into one or more of three categories:

• Private Pay & PMI (Private Medical Insurance): More discretionary, often reliant on brand and quality of care. Less contractual security means lower revenue certainty from a buyer’s perspective.

• Occupational Health Physio: Typically underpinned by B2B contracts, offering a degree of revenue stability and predictability.

• NHS (FCP or Secondary Care): Generally governed by contracts or frameworks, and increasingly viewed as attractive due to their recurring nature and alignment with long-term healthcare trends.

The greater the proportion of contractual, recurring income, the more appealing the business is to acquirers.

For more on how investors evaluate different segments of the UK physiotherapy market, see our article: Consolidation in UK Physiotherapy: Investor Strategies Across NHS, Private and Occupational Segments

5. Multi-Site vs. Single Site

Multi-site groups tend to be more scalable, more resilient, and more attractive to both trade acquirers and private equity. They offer flexibility in growth and reduce the risk of site-specific issues.

6. Clinical Staff Quality and Retention

Experienced, well-qualified therapists who are not reliant on the founder increase buyer confidence. A strong clinical team with low turnover adds continuity and reduces operational risk.

7. Facility Condition and Equipment

Modern, well-presented clinics with up-to-date equipment make a positive impression during due diligence and signal investment in service quality. Facilities that require minimal capital expenditure are particularly attractive.

8. Reputation and Brand Presence

A recognised local brand, strong word-of-mouth reputation, and positive online reviews all contribute to goodwill. Buyers place value on clinics with a loyal patient base and a visible presence in their community.

Indicative Valuation Ranges

Here are some broad valuation benchmarks we see in the UK market today:

Business Type	EBITDA	Valuation Multiple	Deal Structure
Solo clinic with strong founder reliance	£200k	3–4x	~50% performance-based earn-out
Small group, low founder reliance	£500k	5–6x	~25% performance-based earn-out
Larger group, no founder reliance	£2m	7–8x	Entirely up-front, no earn-out

These are illustrative examples. Every business is different, and actual valuations will depend on commercial nuances, buyer appetite, and deal dynamics.

What Next?

If you're considering a future sale, understanding these drivers early can help you build towards a more valuable exit. At Eclipse, we specialise in advising UK healthcare operators, including physiotherapy clinic owners, on how to prepare for and execute successful company sales.

If you'd like a confidential conversation about your options, or a more tailored view on valuation, feel free to get in touch.