Your guide to navigating the high-growth digital health market and preparing for your next chapter.
The market for Telehealth and Digital Therapy Solutions is growing at an unprecedented rate. For practice owners in Las Vegas, this presents a unique window of opportunity. Selling your practice is a major decision. This guide provides a clear overview of the current Las Vegas telehealth market, what drives practice value, and how to prepare for a successful sale. Understanding these factors is the first step toward getting the outcome you deserve.
A Market Defined by Growth
You are operating in one of the fastest-growing sectors in healthcare. The momentum is not just a national trend. It is a local reality in Nevada. After the pandemic, telehealth adoption became widespread, and state laws now support its use by requiring insurance and Medicaid coverage. This favorable regulatory climate in Las Vegas makes your practice particularly attractive to buyers looking for a foothold in a supportive and expanding market.
The numbers speak for themselves. Consider the following growth projections:
1. Global Telehealth Market: Projected to grow at a compound annual growth rate (CAGR) of 11.5%.
2. U.S. Telemedicine Market: Expected to grow even faster, with a projected CAGR of 18.50%.
3. Digital Therapeutics Market: This niche is exploding, with a projected CAGR of an incredible 27.5%.
This isn’t just growth. It’s a fundamental shift in how healthcare is delivered, and your practice is at the center of it.
What Buyers Look For in a Digital Health Practice
A strong market is a great start. But a buyer’s decision comes down to the details of your specific operation. For a telehealth or digital therapy practice, the due diligence process focuses on areas that are very different from a traditional practice. You should be prepared to discuss these points in detail.
Your Technology Platform
Is your platform proprietary or licensed? Buyers will assess its scalability, user experience, and integration capabilities. A clunky or outdated system can be a major hurdle, while a modern, efficient platform is a significant asset.
Regulatory and Payer Compliance
Buyers will look closely at your billing practices, provider licensing for any cross-state services, and your HIPAA compliance protocols. Clean records and established compliance procedures reduce perceived risk and can increase your practice’s valuation.
Provider and Patient Base
How dependent is the practice on you, the owner? Practices with a diverse team of providers and a well-defined patient acquisition strategy are seen as more stable and valuable. They demonstrate that the business can thrive beyond a single person.
The Buyers Are Here, and They Are Sophisticated
The growth in telehealth has not gone unnoticed. Both private equity firms and large healthcare systems are actively acquiring digital health practices in growth markets like Las Vegas. These are not small, one-off transactions. These buyers are sophisticated and looking to build regional or national platforms. For you, this means there is significant demand for a well-run practice. It also means you will likely be negotiating with experienced dealmakers. An unsolicited offer might seem attractive, but it is rarely the best one. We find that the highest valuations are achieved when you run a confidential, competitive process that brings multiple qualified buyers to the table. This forces them to compete for your practice, ensuring you are selling on your terms, not theirs.
A Process Built for Success
Many practice owners think about selling as a single event, but a successful transaction is a multi-stage process. The owners who achieve the best outcomes are those who prepare well in advance. In fact, if you think you might want to sell in the next two to three years, the time to start preparing is now. Buyers pay for proven performance, not just potential.
A typical sale process involves these key phases:
1. Preparation and Valuation: We start by analyzing your financials, normalizing your earnings, and determining a realistic market value. This is also when we identify and fix any operational issues before a buyer sees them.
2. Confidential Marketing: We create professional marketing materials that tell your story and highlight your growth opportunities. We then present your practice to a curated list of qualified buyers while protecting your confidentiality.
3. Negotiation: We manage offers from multiple parties to create competitive tension and negotiate the best possible price and terms on your behalf.
4. Due Diligence and Closing: This is where the buyer verifies all the information about your practice. Proper preparation here is critical to prevent surprises that could derail the deal before you reach the closing table.
Understanding What Your Practice Is Really Worth
How much is your practice worth? The answer is more complex than a simple formula. Sophisticated buyers value your practice based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This isn’t the profit number on your tax return. We calculate it by taking your net income and adding back owner-specific expenses like an above-market salary, personal vehicle leases, or other non-recurring costs. This reveals the true cash flow of the business.
That Adjusted EBITDA figure is then multiplied by a number the “multiple” to determine your practice’s enterprise value. This multiple is influenced by your practice’s size, growth rate, technology, and how dependent it is on you as the owner. A multi-provider practice with a strong growth story might get a 7x multiple, while a smaller practice might get a 4x multiple. Getting this right is the foundation of a successful sale.
Planning for Life After the Sale
Your work is not done when the deal closes. The structure of your sale has major implications for your future, your finances, and your team. Thinking about these elements early in the process is one of the most important things you can do. You need to protect your legacy and your financial future by planning for what comes next.
Many modern deals, especially with private equity, involve more than just cash at closing. It is important to understand these common structures.
| Post-Sale Structure | What It Means for You |
|---|---|
| Employment Agreement | You may be required to continue working for a set period (e.g., 1-3 years). |
| Earnout | A portion of your payment depends on the practice hitting future performance targets. |
| Equity Rollover | You “roll over” a part of your sale proceeds into equity in the new, larger company. |
The right structure depends entirely on your personal and financial goals. An equity rollover, for example, gives you the potential for a second, often larger, payday when the new company is sold again. But it also carries risk. Navigating these options is key to building a transition plan that works for you.
Frequently Asked Questions
What is driving the growth of the telehealth market in Las Vegas?
The telehealth market in Las Vegas is growing rapidly due to widespread adoption after the pandemic, supportive state laws requiring insurance and Medicaid coverage, and the overall high-growth trend in digital health nationally and globally.
What key factors do buyers focus on when evaluating a telehealth or digital therapy practice?
Buyers focus on the technology platform’s scalability and user experience, regulatory and payer compliance such as billing practices and HIPAA protocols, and the provider and patient base’s diversity and independence from the owner.
How do buyers in the Las Vegas telehealth market typically value a digital health practice?
Buyers use an Adjusted EBITDA metric, which adjusts net income for owner-specific expenses, to determine cash flow. This figure is multiplied by a multiple based on factors like practice size, growth rate, technology, and owner dependence to determine enterprise value.
What does the typical sale process for a telehealth practice in Las Vegas involve?
The sale process typically involves preparation and valuation, confidential marketing to qualified buyers, negotiation to generate competitive offers, and a due diligence phase before closing to verify all information and prevent surprises.
What post-sale structures might a seller expect when selling a telehealth practice in Las Vegas?
Common post-sale structures include employment agreements requiring the seller to work for the buyer for a period, earnouts where part of the payment depends on future performance, and equity rollovers where the seller retains equity in the larger company for potential future payouts.