Guide to Selling a Telehealth & Digital Therapy Solutions Practice in Delaware

Selling your Delaware Telehealth and Digital Therapy practice is a major decision. The market is booming, but a successful sale depends on understanding the unique opportunities and challenges in this fast-growing sector. This guide provides key insights into the current landscape, helping you prepare to navigate the sale process and maximize its value.

Curious about what your practice might be worth in today’s market?

Market Overview

The timing for selling a telehealth practice has rarely been better. The market is expanding at an explosive rate, creating significant opportunities for practice owners who are prepared to act.

A Booming National Trend

The U.S. digital therapeutics market is on a steep growth trajectory, projected to expand from just a few billion dollars to over $20 billion by 2034. This surge is driven by high patient demand and strong investor interest, with some virtual care companies attracting valuations of over $1 billion. This national momentum creates a vibrant and competitive acquisition environment, which is great news for sellers.

Delaware’s Favorable Position

Delaware stands out due to its favorable regulatory environment. Recent legislation, like the Telehealth Access Preservation and Modernization Act of 2021, has solidified and expanded telehealth access and reimbursement. The state’s clear legal framework and interstate registration options make a Delaware-based practice particularly attractive to a wide range of buyers, both in-state and out-of-state.

Key Considerations

The strong market means buyers are both more numerous and more sophisticated. They will look closely at the details of your practice to assess its long-term viability and risks. Before you go to market, you should expect buyers to scrutinize your operations, paying close attention to your data security, reimbursement models, and technology platforms. A practice that can demonstrate robust HIPAA compliance, has clear contracts with payers, and runs on a reliable, scalable tech stack will command a premium valuation and experience a smoother due diligence process. Preparing this documentation in advance is a critical step that we see many owners overlook.

Market Activity

The current M&A landscape for telehealth is active and strategic. We see three key trends that every practice owner in Delaware should be aware of as they consider a sale.

1. High Investor Appetite. Private equity firms and larger strategic buyers are actively seeking to acquire profitable and scalable telehealth platforms. They have capital to deploy and view digital health as a key area for future growth.
2. Focus on Proven Profitability. Buyers are looking past simple revenue figures. They want to see a history of healthy profit margins and predictable cash flow. Practices that have optimized their operations and can clearly demonstrate their profitability are in the strongest negotiating position.
3. The Need to Stand Out. With more practices entering the market, having a compelling story is vital. Your unique selling proposition1whether its a niche specialty, a loyal patient base, or proprietary technology1must be clearly articulated to attract the right kind of attention and drive competitive offers.

Sale Process

Selling a practice is less like a single handshake and more like a carefully managed project. A structured process is designed to protect your confidentiality while maximizing your final sale price. It generally begins long before a buyer is ever contacted, with critical preparation that includes financial cleanup and strategic positioning. This is followed by confidential marketing to a vetted list of potential buyers, creating a competitive environment. After initial offers are received, the process moves to negotiation, a formal letter of intent, and finally, the due diligence phase. This final stage is where many unguided deals fall apart, as it involves a deep, comprehensive review of your clinical, financial, and operational records.

Valuation

Understanding your practice’s value is the foundation of a successful sale. It is not determined by a simple formula. Instead, a buyer will calculate your Adjusted EBITDA1a measure of true profitability that adds back owner-specific and one-time expenses to your net income. This figure is then multiplied by a number, the “multiple,” to arrive at your enterprise value.

For telehealth practices, this multiple is influenced by several key factors.

Getting this calculation right requires deep market knowledge, as multiples can vary significantly based on your specific strengths and the current deal environment.

Post-Sale Considerations

The work is not over when the sale documents are signed. Your role in the practice’s future, and the financial outcome for you personally, are shaped by decisions made during negotiations. Planning for what comes next is a critical part of the process.

1. Your Role After the Sale. Most buyers will require a transition period where you stay on to ensure a smooth handover. The length and terms of this period are negotiable and should align with your personal goals, whether you plan to retire or move on to a new venture.
2. Tax-Efficient Structures. How your sale is structured has massive implications for your after-tax proceeds. An expert can help you and your accountant navigate options that legally minimize your tax burden, potentially saving you hundreds of thousands of dollars.
3. The ‘Second Bite’. In many deals, sellers have the opportunity for an equity rollover, where they retain a minority stake in the new, larger company. This provides a chance for a “second bite at the apple”1 a second, often larger, payday when the new company is sold again in the future.

Every practice sale has unique considerations that require personalized guidance.