Independent Sponsor Finds Off-Market Deal That Three PE Firms Had Missed

The Challenge

An experienced healthcare executive turned independent sponsor was searching for an outpatient physical therapy practice to acquire as a platform for a regional roll-up. The sponsor had been searching for eight months using a combination of broker relationships, Axial, and personal outreach. Every brokered deal attracted 15-20 competing buyers and traded at 7-9x EBITDA — multiples that did not support the sponsor's return requirements. The sponsor needed proprietary, off-market deal flow to find opportunities at multiples that made the roll-up economics work. Without committed capital, the sponsor also needed targets compelling enough to attract capital partners quickly.

The Solution

DealsByTed was deployed on the Scout plan targeting outpatient physical therapy practices with $1.5M-$8M revenue, founder-owned, 3+ locations, operating for 10+ years, in target metropolitan areas across the Southeast. Ted identified companies that had never been marketed by a broker and were not listed on any deal platform. Each target included practice details, estimated revenue per location, provider headcount, payer mix indicators, and direct owner contact information. The sponsor focused on building relationships with the most promising targets while Ted maintained pipeline continuity.

Results

• 34 qualified physical therapy practices identified in 60 days
• 11 owner conversations initiated
• 4 companies progressed to preliminary financial review
• 1 acquisition closed at 5.1x EBITDA (vs. 7-9x for brokered deals in the same vertical)
• Valuation savings of approximately $2.4M compared to brokered process multiples
• Capital commitment secured from family office within 2 weeks of presenting the opportunity
• Total DealsByTed cost: $6,000 (2 months on Scout plan)

Timeline: First targets in 24 hours. Owner relationship initiated at week 3. LOI submitted at month 6. Closed at month 8.