The market for Telehealth & Digital Therapy practices in Salt Lake City is uniquely strong, driven by high local demand and massive industry growth. If you are a practice owner, you are likely considering what this opportunity means for your future. A successful sale is not a matter of luck. It’s the result of careful preparation, strategic timing, and a deep understanding of your practice’s true value. This guide provides insight into the current market and how to navigate a successful transition.
Understanding your practice’s current market position is the first step toward a successful transition.
Market Overview: A Convergence of Need and Opportunity
The environment for telehealth and digital therapy in Salt Lake City is not just favorable; it is expanding rapidly. Two key forces are at play: significant local demand and powerful national trends. This combination creates a clear window of opportunity for practice owners considering a sale.
A Growing Need in Utah
Utah is experiencing a well-documented shortage of mental health providers. This gap has made telehealth a critical part of the state’s healthcare infrastructure. Major local systems like Intermountain Health and the University of Utah Health are actively expanding their digital services. Further, community-level adoption, such as the Salt Lake City School District’s telehealth therapy partnerships, confirms the deep and growing need for accessible digital care solutions in your immediate area.
A Market Poised for Growth
This local demand is happening within a booming global market. The telehealth sector is projected to reach over $455 billion by 2030, with online therapy services alone expected to grow to $14 billion by 2034. For a seller in Salt Lake City, this means buyers are not just acquiring a local practice; they are investing in a gateway to one of healthcare’s fastest-growing sectors.
Key Considerations for SLC Telehealth Owners
Beyond the strong market tailwinds, selling a telehealth practice in Salt Lake City requires navigating specific regulatory and operational factors. A potential buyer will look closely at your compliance with Utah’s telehealth laws, such as Utah Code Section 26B-4-704, which governs how a diagnosis is established and treatment is provided remotely. Your approach to cross-state licensing is also important if you serve patients outside of Utah. While federal policies like the extension of certain Medicare telehealth waivers through September 2025 are helpful, the regulatory landscape is always changing. Proving your practice is compliant, adaptable, and a pillar of the community gives buyers the confidence to pay a premium.
What Buyers Are Looking For Today
Transaction activity in the digital health space is energetic, with both strategic acquirers and private equity groups seeking to expand their footprint in high-demand areas like Salt Lake City. These buyers are sophisticated and move quickly when they find the right opportunity. They are typically looking for a few key attributes:
- Strong Financial Performance. Buyers want to see clear, consistent revenue and, most importantly, healthy Adjusted EBITDA. This shows the core profitability of your operations.
- Scalable Operations. A practice that relies entirely on the owner is harder to transition. Models with multiple providers and efficient, tech-enabled workflows are seen as more scalable and, therefore, more valuable.
- A Clear Growth Story. Your practice’s story is as important as its numbers. You must be able to articulate a compelling narrative about how a new owner can capitalize on the market demand in Utah to grow the practice even further.
Proper preparation before selling can significantly increase your final practice value.
The Sale Process: A Structured Approach to Success
Selling your practice is a journey with distinct stages. While receiving an unexpected offer can be flattering, it is rarely the way to achieve the best outcome. A structured, confidential process creates a competitive environment that maximizes your valuation and gives you control over the terms. The path generally begins with deep preparation, where we help you organize your financials and craft your growth story. It then moves to confidentially marketing your practice to a curated list of qualified buyers, followed by negotiating offers, navigating the critical due diligence phase, and finally, closing the transaction smoothly. Each step presents challenges, but with expert guidance, the process becomes a clear path to your goal.
How Your Telehealth Practice is Valued
Valuing a telehealth practice is more than a simple formula; it is about understanding its true earning power and future potential in the eyes of a buyer. The foundation of any valuation is Adjusted EBITDA, which represents your practice’s normalized cash flow after adding back personal or one-time expenses. This figure is then multiplied by a market-based multiple.
Telehealth practices currently command strong multiples, often between 4.7x and 5.5x, significantly higher than many general medical practices. However, the exact multiple is influenced by several factors.
| Factor | Impact on Multiple |
|---|---|
| Provider Reliance | Multi-provider, associate-driven models are less risky and increase value. |
| Growth Profile | A documented strategy for expansion commands a premium from buyers. |
| Technology Stack | An efficient and modern EHR and patient platform is highly valued. |
An accurate valuation is the bedrock of a successful sale. It sets realistic expectations and is your most powerful negotiation tool.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Post-Sale Considerations: Securing Your Future
The moment the deal closes is not the end of the story. The decisions you make during negotiations will shape your financial future and personal legacy for years to come. Thinking about your post-sale life is a critical part of the planning process. Do you want to continue working in a clinical role? Are you seeking a complete exit? The structure of the sale, including any earnouts or the possibility of rolling over equity into the new entity, has massive implications for your after-tax proceeds and future wealth. Great advisory work focuses not just on the sale price, but on structuring a deal that protects your staff, preserves your legacy, and aligns perfectly with your long-term personal and financial goals.
Every practice sale has unique considerations that require personalized guidance.
Frequently Asked Questions
Why is Salt Lake City a strong market for selling a Telehealth & Digital Therapy practice?
Salt Lake City has a high local demand for telehealth services driven by a shortage of mental health providers in Utah, with major systems like Intermountain Health and the University of Utah Health expanding digital services. This local demand aligns with major national growth trends in telehealth, making it a prime market for practice sales.
What factors influence the valuation of a Telehealth practice in Salt Lake City?
Valuation is primarily based on Adjusted EBITDA, which measures normalized cash flow. Strong factors that increase valuation include having a multi-provider model (reducing reliance on a single owner), documented growth strategies, and a modern, efficient technology stack like EHR and patient platforms. Multiples typically range from 4.7x to 5.5x.
What regulatory considerations should sellers be aware of when selling a telehealth practice in Utah?
Sellers must be compliant with Utah telehealth laws such as Utah Code Section 26B-4-704, which governs remote diagnosis and treatment. Cross-state licensing becomes important if the practice serves out-of-state patients. Awareness of federal policy changes, such as Medicare telehealth waivers, is also critical due to the evolving regulatory landscape.
What are buyers looking for in a Telehealth & Digital Therapy practice in Salt Lake City?
Buyers seek practices with strong financial performance, especially healthy adjusted EBITDA, scalable operations with multiple providers and tech-enabled workflows, and a clear growth story showing how the practice can expand in the high-demand Utah market.
What post-sale considerations should a seller keep in mind?
Post-sale planning is crucial for protecting financial outcomes and personal legacy. Sellers should consider whether they want to continue working clinically or exit completely, and the sale structure including earnouts or equity rollover. These decisions impact after-tax proceeds and long-term wealth, staff protection, and legacy preservation.