**Transcript was automatically generated by artificial intelligence.**

Paul Martin
Good afternoon and welcome to another episode of Paul Martin's crucial Conversations. We're excited to have all of you and we are also excited today to have with us Kelly McFarland from Premiere Rehab Physical Therapy. Kelly, welcome.

Kelly Mcfarland
Thank you. So happy to be here with you, Paul.

Paul Martin
And it's great to have you back. Premiere is a six clinic physical therapy business that is located in the Dallas-Fort Worth market in Texas. And Kelly was a former client of Martin Health Care Advisors and significant successfully partnered premiere with Empower Physical Therapy back in March of 2020, right before COVID took over the country. And Kelly has since added two clinics under management, five additional clinics in Texas, and she will be adding three more by the summer. So you are now a fort will become a 14 clinic business operator, Kelly. How does that feel?

Kelly Mcfarland
Yes, it's super exciting. Know, it was one of my goals always to just continue to grow and do the things that I love to do. And we are in fact doing that. And so super exciting for sure. Yes.

Paul Martin
Yeah. And it's a testament to, you know, empower as well as to yourself to, you know, really have because, you know, many times when people sell transition their company, they slow down. It's kind of time to slow down. But you have ignited and really are doing some great things for empower and for any of you out there in power is a private equity backed company based out of Phenix, Arizona, with 50 plus clinics located in Louisiana, Texas. Arizona and California. And we have talked to the CEO, Steve DePaulo, of that company many times. So, Kelly, today I want to explore with you some things that a part of your journey that would take you back before you actually entered into a sale process and a transition process. Do you remember when it first hit you that it was time to transfer, sell partner with a larger company, one of the first to hit you?

Kelly Mcfarland
I think it first hit me when I knew the market was changing slightly. I knew that some bigger companies were coming to the marketplace. I knew that I wasn't finished building my practice. I wasn't ready to stop. I wanted to continue to be or at least have an impact on the private practice footprint. So when I felt some pressure, being a single owner with six clinics, that comes with some financial responsibility, that comes with some market changing finance responsibility, and then the competition rising in our area and doing that alone but not wanting to stop, I felt like there's probably another level that I need to get to, whether that's another level of management within my company that can help me do it or partnering with the right company. That was my moment and deciding factor that something had to change.

Paul Martin
Yeah, really interesting. It is, though, Kelly, again, you kind of took a look at the external market and you saw what was happening there. And then what I'm hearing is when you looked internally, you said, I can do more, I can be larger, I can continue to serve more people. And the decision was as it as I as I understand that then to have a bigger company and to join a bigger company enabled you to take those steps of continuing to grow, Premier.

Kelly Mcfarland
Yes, absolutely. Absolutely.

Paul Martin
So do you remember any of the moments kind of along that path, you know, that decision path? And was there ever a time that you said, ooh, not sure. I really I'm not sure I'm really ready for this. And how did you get through those times?

Kelly Mcfarland
You know, when I decided to look at the market and see if there was a partner for me, I think I never went back on that decision. I wanted to continue to move forward to see if there was a partner that would fit my mindset, my goal, my my vision. So that goal never changed. I think my goal could have changed had I not found a partner that would have fit my vision and mission. And there are many companies out there, and I spoke to many of them and are familiar with many of them. And had there not been a right fit, I think that would have been my pivotal moment to maybe make a decision to not move further into the market with anyone else, but then to try to make a change within my company on my own. But luckily, we found a great partnership with Empower, so we can continue to move through that process.

Paul Martin
What were some of the steps that you took kind of along this path to make sure that Premier was able to find the right partner in a with Empower? What were some of those steps you took to get there?

Kelly Mcfarland
Well, are you talking about when I was overall evaluating my business or when I actually was visiting with potential.

Paul Martin
From the start of the idea of I want to do this, to pick, to empower. What were some of the steps you took along that path that led you to the final decision of you and empower we're going to get married.

Kelly Mcfarland
Right? Right. So before I went to the market as an independent owner with six clinics, I'm the only owner. I don't have a partner. I don't have a board. I don't have an investor. So for me, by myself, I felt like my business was doing really well, but I wanted to make sure that my business was doing really well compared to the market. I only know what I knew and I only knew what I look like today compared to where I started. 17 years ago prior to going to the market. So obviously from one clinic to six clinics, I was doing something right. So there was success that I could measure for sure. But I wanted to know from another person's perspective and my market is what we're doing, right? Are we on the right path? Are we where we should be in the market? Are we generating the revenue we should generate? Am I collecting what I should be collecting? Are there some processes that I don't know about? And I had been a private practice section member of the APTA for 16 years, had been a presenter, served on committees, served as committee chairs. So I've been in it meeting colleagues and doing wonderful things. But for me, I wanted an advisory company to look at my business for me, to advise me, to let me know where I stand within the market. Am I on track? Am I doing the right things? Am I generating enough revenue? Am I collecting what I should be collecting? And then make changes as I need to so that I could be valuable. Whether I stayed alone as Premier and continue to grow on my own, or if I did go to the market. So that was pivotal in that I was able to partner with your group. Paul That was able to partner with me over at least a year's time where they could teach me and coach me and mold me and show me and be able to tell me locally within the market, this is where you stand or within the market. This is where you should be. So it was amazing and I think we had a great relationship that anyone who knows me, I like to go super fast at 200 miles per hour and anything that I do. And working alongside your group, they would advise me on things and I would do it. And so it was successful. It was wonderful. So then I was guided to the market with your group, met with many different people, and face to face meetings are super, super important. Phone meetings were super important meeting with the groups, meeting the people on their team, having real conversations with them about what really matters currently and future and just making sure, as you say, that marriage that we are looking for the same thing because we're all getting to where we think we've kind of figured out what our specialty is or what our niches or what our specialty area is. We want to continue to master that. And so with Empower and their team and I meeting, it just made perfect sense that we, in fact were looking to move the same direction.

Paul Martin
Yeah. And, Kelly, you thrive, lived through the process, and now we're seeing you again. You're thriving now that you're through and with Empower. And it gives us such pleasure to see how you are thriving and continuing to march forward. You know, many business owners out there have the fear of telling their staff, and I'm not sure. I think we had some conversations about, you know, what's going to happen when you tell your staff, but walk us through how you told your staff and what their reaction and feedback was on this new partnership and maybe what you feared, their reaction might be.

Kelly Mcfarland
Sure. So I have a staff that is the majority of my staff has been with me a very long time. So I the young lady who started with me at my front desk on day one, is still with me today. And I have a clinic director who's been with me eight years, another one, 16 and another 115. Another 112, another 110. And it goes down from there just because we've recently added clinics, right? So the majority of my team has been with me through the duration of it. And the success of Premiere highly depends on the success of my team. It wasn't just all me and I've always shared that success with them and talked about that. So it was very important to me for my team. When I made this decision and made this transition, it was very important that the team understand why and what it meant and where we're going. One of the big challenges for me as an independent owner, small fiscal therapy company, six clinics, was that I had so many team members who had come and stayed that we were running out of opportunities for our team. New grads were coming to join us and they wanted something more. And my clinic directors weren't going anywhere. So we were running out of opportunities for growth for our team. And that was another big challenge that I was looking for in a partner where my team could be utilized in their talents or at least have opportunity to learn more or explore more. So I was just truthfully honest. And with those leaders, I met with each of them, each of them, one on one, and explain that to them that they know that we've had a position where our team is limited in their growth. We're looking to to keep our place in the market. So it just was a true heart to heart talk and a heart to heart goal discussion that I shared with them. And they understood and they were very heartfelt conversations. Some of us cried, some of us laughed. But they're all with me still today. We haven't lost anybody because of moving and joining to empower, and they've all found ways to be involved. So it's really been a wonderful transition for sure.

Paul Martin
So, Kelly, that's been almost two years now.

Kelly Mcfarland
Yes.

Paul Martin
So from those conversations that you had with them, you know, it sounds to me like you shared with them. You know, we're doing this because we want to expand, we want to grow. We want to become better. Yes. If I had them all on the call today, how would they say that has panned out from that discussion to where they are today? Would they I mean, they're all still on board. Would they all agree that what you talked about two years is actually now coming to fruition?

Kelly Mcfarland
Oh, I believe so. They all it's we have been exposed to more programs than we ever had before. And everyone's engaging in something and finding leadership roles in new ways in addition to what they've done before. So I know that they would agree that we will and we're opening three new clinics this summer. So we are continuing to grow. We are continuing to expand and offer opportunities to our team. So, yes, I think they would agree and say that they are.

Paul Martin
Yeah. And you know, again, I find especially folks like you when they've had a staff that has followed them and have trusted them, that when they go into something new and different, yes, it's scary. And yes, it may be intimidating at first, but we're going to follow your lead and it sounds like they have followed your lead.

Kelly Mcfarland
Yes, I think that's funny that you say that, because one specifically said to me, Kelly, I trust you. I've trusted you this whole time and I trust you now. And then another one said, you're not going anywhere. Right. And I said, no, I'm not going anywhere. So. So, yes, those are all normal and natural questions, right. That your team's going to want to know. And as long as I was prepared to have those discussions and and the honest truth was in everyone's best interest, it just worked out beautifully, I think. Yeah.

Paul Martin
Yeah. So you have now absolutely been through an integration process.

Kelly Mcfarland
Yep.

Paul Martin
And that's a process that many business owners out there they dread. You know, the acquirer comes in and things are going to change. What advice would you have for owners that are contemplating a partnership in 2022? To best help them prepare for eventual that integration process with an acquirer?

Kelly Mcfarland
I think the new business really should if not already have a plan on how that integration process will go. They typically have some sort of timeline or list of importance. What that integration process would look like, and I think that's very important to discuss, if that is heavy weighing on somebody's mind or their heart before making that decision, the company should be able to explain that and draw out some sort of timeline or goal and give some direction or ideas of what that looks like to help. Because I think with every company that's probably different. Of course, with Empower, it was perfectly wonderful. I mean, I don't have any complaints. So, you know, our executive team is filled by physical therapists, so we're private practice owners. We pretty much think all the same and have the same vision, which is what's so wonderful about us and just growing our footprint of the private practice minded sector. So for us and me, it was it was completely appropriate.

Paul Martin
Does any story come to mind that kind of cemented that, that they were kind of on the same page as you were and they think the way you do. Any story that comes to mind from going through that experience.

Kelly Mcfarland
Maybe not any one particular story, but it is interesting that when we talk about a topic, as they say, and explain things almost exactly how I would say and explain things. This thing. And you you can tell when people come from the same cloth or the same background or the same vision. I just think because our leaders are physical therapists who have owned their own practice, we all kind of speak the same. So that's been really nice.

Paul Martin
Absolutely. Absolutely. Well, Kelly, once again, I really, really appreciate you coming and joining us. And I think you've given the folks and the listeners here today just a lot of great information on, again, kind of when this first started for you. And it's just great to hear what success you have had. We had no doubts that you would be successful wherever you landed. We had absolutely no doubts. And I really appreciate you taking the time and coming on with us today.

Kelly Mcfarland
Yes. Thank you so much. Love to see you guys out in the market. I think you do great, great things for great people. So thank you.

Paul Martin
Thank you. And for all of you who have joined us today, if you have any questions about the conversation that I had with Kelly today, just click below and let's talk. Thank you and have a great day.