Selling your Utah Telehealth & Digital Therapy practice is a major decision. The market is dynamic, driven by massive growth in digital health, but a successful sale requires navigating Utah’s specific regulatory and market landscape. This guide provides an overview of the key factors you should consider, from understanding the market and your practice’s value to planning for life after the transaction. We are here to help you get it right.
The Market for Digital Health in Utah
The timing for considering an exit has rarely been better. Your practice doesn’t operate in a vacuum; it is part of a wave of innovation that sophisticated buyers are eager to invest in.
The National Boom
The entire digital health sector is experiencing explosive growth. The global telehealth market is forecast to expand at an annual rate of over 24%. In the U.S., the digital therapeutics market is projected to grow by over 33% each year. This is not a fleeting trend. It is a fundamental shift in healthcare delivery, and it has put practices like yours directly in the sight of strategic buyers and private equity groups looking for their next platform.
The Utah Opportunity
This national momentum is reflected locally. In areas like Utah County, over 30% of adults already utilize telehealth services. Buyers see this established patient behavior as a strong foundation for growth. They are not just acquiring a practice. They are acquiring a foothold in an engaged and digitally savvy market. A successful sale depends on positioning your practice within this larger narrative of growth and opportunity.
Key Considerations for a Telehealth Sale
Beyond the market trends, a potential buyer will scrutinize the unique operational DNA of your practice. It is important to have your story straight. Are your providers properly licensed with Utah’s Division of Occupational and Professional Licensing (DOPL) for all services rendered? Is your technology stack secure, HIPAA-compliant, and scalable, or is it holding you back? You must also be able to clearly demonstrate how you acquire and retain patients. A documented, repeatable marketing and retention strategy is far more valuable to a buyer than inconsistent growth. Answering these questions before you go to market is not just good practice. It is fundamental to a smooth process.
What Is Driving Market Activity?
While specific sale prices for Utah telehealth practices are confidential, the broader market shows significant momentum. High-value niches, like a telehealth clinic for weight loss being listed for $1.5 million, show the premium that specialized, well-run digital practices can command. We are seeing three key trends driving acquisitions in this space.
- Search for Scalability. Buyers want platforms they can grow. They are looking for practices with efficient operations and a clear path to expanding services or entering new geographic markets within Utah and beyond.
- Focus on Technology. A practice with a modern, integrated technology stack is more attractive. Buyers see this as a sign of operational maturity and a platform that can support future growth without a major new investment.
- Appetite for Niche Services. Practices that dominate a specific niche, whether in digital therapy, chronic care management, or another specialty, are highly sought after. This specialization creates a defensible market position that buyers will pay a premium for.
Understanding the Sale Process
Selling your practice is a structured campaign, not a passive listing. It begins long before a buyer is involved, with deep preparation to organize your financials and articulate your growth story. The next stage involves confidentially marketing the opportunity to a curated list of qualified buyers to create a competitive environment. This ensures you are negotiating from a position of strength. Once an offer is accepted, you enter the due diligence phase, where the buyer verifies all aspects of your practice. This is often the most demanding stage and where many deals falter without expert guidance. A well-managed process protects you at every step and is designed to get you to the closing table with the best possible terms.
How Your Practice Is Valued
The value of your practice is not based on revenue. Sophisticated buyers use a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your true cash flow after adding back owner-specific expenses and non-recurring costs. That Adjusted EBITDA figure is then multiplied by a number the multiple which is heavily influenced by your practice’s specific risk and growth profile. For a telehealth practice, buyers look closely at the following factors.
| Factor | Commands a Lower Multiple | Commands a Higher Multiple |
|---|---|---|
| Provider Model | Fully dependent on the owner | Associate-driven and scalable |
| Technology | Off-the-shelf, manual processes | Integrated, secure, efficient tech |
| Patient Base | Concentrated in one area | Diverse, with a clear growth plan |
Getting an accurate valuation requires a deep analysis of your numbers and a compelling story that justifies a premium multiple.
Planning for What Comes Next
The day you close the sale is a beginning, not an end. The structure of your deal has major implications for your future. How the transaction is designed can significantly impact your after-tax proceeds. Will you take all cash at close, or is there an earnout based on future performance? Many owners also choose to “roll over” a portion of their equity, retaining a minority stake to participate in the future growth of the larger platform. This can provide a powerful “second bite at the apple” when the new, larger entity sells again in a few years. Thinking through these structures and aligning them with your personal financial goals is key to protecting your legacy and maximizing your life’s work.
Frequently Asked Questions
What is driving the current market demand for selling a Telehealth & Digital Therapy practice in Utah?
The demand is driven by the massive growth in digital health, including a national boom in telehealth and digital therapeutics, with annual growth rates exceeding 24% and 33% respectively. Locally in Utah, especially in Utah County, over 30% of adults use telehealth services, making it an attractive market for buyers looking for scalable and technologically advanced practices.
What should I consider about my practice’s operations before selling?
Buyers will assess if your providers are properly licensed with Utah’s Division of Occupational and Professional Licensing (DOPL), if your technology stack is secure, HIPAA-compliant, and scalable, and if you have documented, repeatable marketing and patient retention strategies. Having these in order before going to market is essential for a smooth sale process.
How is the value of my Telehealth practice determined during a sale?
The practice is valued based on Adjusted EBITDA—not just revenue. Adjusted EBITDA represents your true cash flow after adjusting for owner-specific expenses and non-recurring costs. This figure is then multiplied by a multiple influenced by factors such as provider model scalability, technology sophistication, and patient base diversity to determine the sale price.
What are some key trends potential buyers look for in a Telehealth practice in Utah?
Buyers seek practices with scalability potential, modern integrated technology stacks, and specialization in niche services (e.g., digital therapy or chronic care management). Practices demonstrating these qualities command higher multiples and premium sale prices.
What should I plan for after selling my Utah Telehealth & Digital Therapy practice?
The sale’s structure impacts your after-tax proceeds and future involvement. Options include taking all cash at closing, earnouts based on future performance, or rolling over equity to retain a minority stake. Planning these details carefully aligns the sale with your financial goals and protects your legacy.
