The market for telehealth and digital therapy solutions is expanding rapidly, and Atlanta sits at the heart of this growth. Georgia’s digital health sector contributes over $20 billion to the economy, creating a prime environment for practice owners considering a sale. However, a booming market also brings sophisticated buyers and increased competition. Realizing your practice’s full value requires strategic preparation and a clear understanding of the M&A landscape. This guide provides the initial insights you need to navigate the process.
Market Overview
The opportunity for telehealth and digital therapy practice owners has never been more pronounced. The market isn’t just growing; it’s accelerating, driven by powerful national and local trends.
National Momentum
On a national scale, the numbers speak for themselves. The U.S. telehealth market is projected to grow at an incredible 23.8% annually through 2030. Digital mental health, a key segment for Atlanta practices, is forecast to grow from $8.3 billion in 2024 to over $54 billion by 2035. This growth is fueled by an aging population, an increase in chronic conditions, and wider adoption of digital health tools by patients and employers.
Atlanta as a Digital Health Hub
Atlanta is not just participating in this trend; it is a leader. The city is the center of Georgia’s $20.7 billion digital health industry. This vibrant local ecosystem means more than just high demand. It means access to talent, technology, and a community of potential strategic partners and buyers who understand the value of a well-run telehealth operation. For a practice owner, this translates into a receptive and competitive market for your business.
Key Considerations
A strong market is a great starting point, but a successful sale depends on the details. For telehealth and digital therapy practices in Atlanta, navigating Georgia’s specific regulatory landscape is a critical step. Buyers will look closely at your compliance with state licensing laws, which require providers to hold a valid Georgia license to treat residents. They will also verify that you have documented written consent for telehealth services from every patient.
Beyond state rules, your technology platform and data security protocols are a major factor in your practice’s valuation. A secure, modern, and HIPAA-compliant platform is a significant asset. A system with integration challenges or potential data privacy gaps can become a liability during due diligence. Preparing these operational and regulatory aspects now prevents roadblocks later.
Market Activity
The telehealth M&A market in and around Atlanta is not theoretical. It is active and dynamic, with transactions happening across different scales and specialties. We see a few key types of activity that signal a healthy environment for sellers. These buyers are looking for well-positioned practices to achieve their growth goals.
| Type of Buyer/Activity | Recent Example | What This Means for You |
|---|---|---|
| Large Strategic Acquirers | Teladoc Health acquires UpLift for $30M to expand mental health services. | National players need strong local and regional practices to fuel their growth. |
| Private Equity & Platforms | A fully remote Atlanta practice (weight loss, mental health) is on the market. | Investor-backed groups are actively buying practices to build larger platforms. |
| Corporate Partnerships | Growing employer interest in digital mental health for wellness programs. | Creates new revenue channels and potential partnership opportunities pre-sale. |
This activity shows that buyers are paying premiums for practices with a strong patient base, a clear service niche, and clean operations.
The Sale Process
Many owners think selling a practice starts with finding a buyer. It actually starts long before that. A successful sale is a structured process designed to protect your confidentiality and maximize your outcome. It generally follows a few key phases. First is preparation, where you organize your financials and operations to present the practice in the best possible light. Next comes a formal valuation to establish a credible asking price based on data, not guesswork. Only then does the confidential marketing begin, where we identify and approach a curated list of qualified buyers without alerting your staff or competitors. After initial offers are received, the process moves into a formal due diligence period, where the buyer verifies your information. The final stage involves negotiating the definitive agreements and moving toward a successful closing.
Your Practice’s Valuation
Understanding what your practice is worth is the foundation of a successful exit. Buyers don’t value your practice based on revenue. They value it based on profitability and future cash flow, a metric known as Adjusted EBITDA. This is your Earnings Before Interest, Taxes, Depreciation, and Amortization, “adjusted” to normalize for any owner-specific or one-time expenses. That Adjusted EBITDA figure is then multiplied by a number–the “multiple”–to determine your practice’s enterprise value. For practices with over $1M in EBITDA, multiples can range from 5.5x to 7.5x or higher. Here are three key drivers that determine your multiple.
1. Provider Model
Is the practice’s success tied entirely to you, the owner? Or do you have multiple associate providers serving patients? Practices that are not reliant on a single person are seen as less risky by buyers and command higher valuation multiples.
2. Service and Payer Mix
A diverse service offering in high-demand areas like mental health, weight loss, or hormone therapy is very attractive. Similarly, a healthy mix of insurance and cash-pay models demonstrates stability and high-margin potential, which can increase your multiple.
3. Scalability
Buyers pay for future growth. A practice with a strong brand, efficient technology, and clear pathways to enter new markets or add services is considered highly scalable. This future potential can significantly increase the multiple a buyer is willing to pay.
Post-Sale Considerations
The day your practice sale closes is not the end of the journey. It is the beginning of a new chapter, and the structure of your deal will define what that chapter looks like. Many transactions today are not 100% cash at closing. They often include an “earnout,” where you receive additional payments over the next one to two years for hitting certain performance targets. This structure helps bridge valuation gaps and aligns your interests with the new owner. Another common component is “rollover equity,” where you retain a minority ownership stake in the larger, combined company. This gives you a “second bite at the apple”–the potential for another significant payday when the new, larger entity is sold again in the future. Planning for these elements, along with ensuring your staff and legacy are protected in the transition, is a critical part of a well-executed exit strategy.
Frequently Asked Questions
What is the current market outlook for selling a telehealth and digital therapy practice in Atlanta, GA?
The telehealth and digital therapy market in Atlanta is booming, supported by Georgia’s $20.7 billion digital health industry, strong national growth projections, and a vibrant local ecosystem. This creates a competitive and receptive market for sellers.
What specific regulatory considerations should I be aware of when selling my telehealth practice in Georgia?
Buyers will carefully review your compliance with Georgia’s state licensing laws, which require providers to hold a valid Georgia license to treat residents. Additionally, documented written consent for telehealth services from every patient is mandatory. These regulatory factors significantly impact your practice’s valuation.
How do buyers typically value telehealth and digital therapy practices in Atlanta?
Valuation is based on profitability and future cash flow measured by Adjusted EBITDA rather than just revenue. Multiples applied to EBITDA for practices over $1 million can range from 5.5x to 7.5x or higher, influenced by factors such as provider model, service and payer mix, and scalability.
What types of buyers are active in the Atlanta telehealth M&A market?
The market features large strategic acquirers like Teladoc Health, private equity and platform investors building larger networks, and corporate partnerships driven by growing employer interest in digital mental health wellness programs, all seeking well-positioned practices.
What are common deal structures and post-sale considerations in selling a telehealth practice in Atlanta?
Many transactions include earnouts where sellers receive additional payments based on performance post-sale, and rollover equity allowing sellers to retain minority stakes for future upside. Protecting staff and legacy during the transition is also critical for a successful exit.