Private Equity Acquires ATI Physical Therapy (~11.2x EBITDA)
- Will Hamilton
- Aug 7, 2025
- 2 min read
On August 1, 2025, ATI Physical Therapy, Inc. (OTC: ATIP), a leading U.S. provider of outpatient physical therapy and rehabilitation services operating hundreds of clinics across more than 20 states, transitioned from a publicly traded company to private ownership through a merger led by existing stockholders and private investment firms Knighthead Capital Management and Marathon Asset Management. Under the definitive merger agreement, stockholders not affiliated with the investor group received $2.85 per share in cash for their shares, completing the take‑private transaction and delisting ATI from public markets. The privatization was supported by a consortium holding over 90 % of voting shares and aims to provide the company with enhanced strategic flexibility and capital structure optimization as it pursues long‑term growth initiatives in a competitive outpatient services landscape.
By operating as a private entity under Knighthead and Marathon’s stewardship, ATI is expected to shift focus toward organic clinic expansion, clinician recruitment, and investments in care quality and patient experience without the short‑term pressures of public reporting cycles.
Physical Therapy EBITDA Multiples
Based on the share count and net debt obligations in the SEC filings, the total enterprise value was $523.3 million. Revenue and EBITDA were $746 million and $46.7 million, respectively, based on actual results YTD 9/30/2024 plus the midpoint of Q4 guidance (most recent available), implying multiples of 0.7x revenue and 11.2x EBITDA.
Healthcare Professional Services M&A Deal Volume
The number of announced U.S. professional services deals (licensed healthcare provider groups like physicians, dentists, and physical therapists) declined again in 2025. Volume averaged 25 per quarter in 2025, down from 270 per quarter in 2024, 295 per quarter in 2023, and 298 in 2022. Generally, continued growth in the dentistry and medspa / aesthetics segments have offset modest declines across most of the remaining segments, including significant declines among physician practices.
Other Physical Therapy Deals
Read Scope Research's take on other physical therapy transactions:
About Scope Research
The Scope Research Healthcare M&A Valuation Database currently has financial details related to 434 dentistry, physical therapy, and physician practice deals, segmented by specialty, including 290 deals with disclosed EBITDA multiples. The data can be purchased individually, while our affordable annual subscriptions provide access to all of our healthcare M&A databases and segments, updated continuously.
Don't hesitate to reach out to Will Hamilton at will@scoperesearch.co with questions about your specific situation.
