The market for telehealth and digital therapy is expanding rapidly. For practice owners in Jacksonville, Florida, this growth presents a significant opportunity. Deciding to sell your practice is a major step. It requires careful planning to ensure you get the full value for the business you have built. This guide provides a clear overview of the market, the sale process, and how to prepare for a successful transition.
Market Overview: A Sector in Hypergrowth
You are likely not surprised to hear that the telehealth sector is booming. The numbers confirm it. The market is seeing explosive growth that was accelerated by the pandemic and continues to surge as patients and providers embrace its convenience and efficiency.
Unprecedented National Growth
The data tells a powerful story. The global telehealth market is projected to grow at a compound annual growth rate (CAGR) of 22.9% through 2032. Digital therapy solutions are on a similar trajectory, with a projected CAGR of 14.3%. This isn’t a temporary trend. It is a fundamental shift in how healthcare is delivered, and investors are taking notice.
The Jacksonville Opportunity
While specific data for the Jacksonville metro area is blended into state and national figures, Florida’s reputation as a high-growth, pro-business state with an expanding population makes it a hotspot. For telehealth and digital therapy practices in Jacksonville, this means you are operating in a location that is highly attractive to private equity groups and larger healthcare systems looking for a strategic foothold in the Southeast.
Key Considerations for Jacksonville Owners
A strong market is a great starting point, but savvy buyers will look closely at the specifics of your practice. For a telehealth or digital therapy business in Jacksonville, they will focus on your operational maturity and growth potential. Your technology platform is critical. Is it scalable, secure, and user-friendly? Buyers will scrutinize it heavily.
Additionally, Florida’s regulatory landscape, while generally favorable, has specific nuances for telehealth that impact everything from licensing to reimbursement. Your payer mix and contracts will also be under the microscope. Demonstrating a stable, well-managed operational framework is not just about day-to-day business. It is about proving to a potential buyer that your practice is a sound investment, not a project that needs fixing.
Market Activity: Who Is Buying and Why
The high growth in telehealth has created a highly active M&A market. Understanding the key trends can help you position your practice effectively. Here are three you should know about.
- Private Equity is a Major Driver. PE firms see telehealth as a platform for growth. They are acquiring practices to build larger, more efficient regional and national networks. They bring capital and operational expertise, and they are looking for well-run practices with strong leadership.
- Strategic Buyers Seek Expansion. Large hospital systems and established healthcare companies in Florida are acquiring telehealth practices to expand their digital front door, reach more patients, and offer more convenient care options. Your practice could be a perfect strategic fit for them.
- Consolidation is the Norm. The market is consolidating. Smaller, independent practices are joining larger platforms to gain access to better technology, marketing resources, and negotiating power with payers. This trend means that the window of opportunity to be a desirable “platform” acquisition is now.
The Sale Process: From Preparation to Closing
Selling your practice follows a structured path. I find it helpful to think of it in four main phases. First is the Preparation Phase. This is where we work with you to analyze your financials, organize key documents, and create a compelling story about your practice’s future. It culminates in a professional valuation. Second is the Marketing Phase, where we confidentially approach a curated list of qualified buyers. The goal is to create a competitive environment to drive the best offers.
Third, once offers are received, is the Negotiation and Due Diligence Phase. We help you select the best offer and then navigate the buyers intensive review of your operations and financials. This is often the most challenging stage. Finally, there is the Closing Phase, where legal documents are finalized and the transaction is completed. Proper guidance throughout this process is key to avoiding delays and ensuring a smooth transition.
How Your Practice is Valued
Buyers don’t value your practice based on revenue alone. They focus on profitability, specifically a metric called Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is then “adjusted” to reflect the true cash flow of the business. We normalize owner salary and add back one-time or personal expenses to get to this number. This Adjusted EBITDA is then multiplied by a number (a “multiple”) that reflects your specialty, scale, and growth prospects.
Heres a simple example of how adjustments reveal a practice’s true value:
| Financial Item | Amount | Explanation |
|---|---|---|
| Reported Net Income | $300,000 | The “on-paper” profit. |
| Add back: Excess Owner Salary & Perks | +$120,000 | Adjusting owner pay to market rate. |
| Add back: One-Time Tech Upgrade | +$30,000 | A non-recurring expense. |
| Adjusted EBITDA | $450,000 | The true cash flow buyers value. |
This process often reveals significant value that owners don’t realize they have. The final valuation can be much higher than expected.
Post-Sale Considerations: Life After the Deal
The transaction closing is not the end of the story. A well-structured deal considers your personal and financial goals for the years to come. Thinking about this early in the process is one of the most important things you can do.
Your Future Financial Stake
Many owners choose to “roll over” a portion of their equity into the new, larger company. This means you retain ownership and can benefit from a “second bite of the apple” when the larger platform is eventually sold again. Deals can also include an “earnout,” where you receive additional payments for hitting performance targets after the sale. These structures align your interests with the buyer and can significantly increase your total proceeds.
Your Future Role and Legacy
What do you want to do after the sale? Some owners wish to retire, while others want to focus solely on clinical work without the administrative burden of ownership. Many deals allow for continued clinical leadership. The right partnership preserves your clinical autonomy and protects the culture you built for your staff. We help you find a buyer whose vision aligns with yours.
Frequently Asked Questions
What is driving the growth of the telehealth and digital therapy market in Jacksonville, FL?
The telehealth and digital therapy market is expanding rapidly due to heightened patient and provider adoption accelerated by the pandemic. Jacksonville benefits from Florida’s pro-business environment and growing population, attracting investors and healthcare systems seeking to expand their digital healthcare offerings.
What factors do buyers consider when evaluating a telehealth practice in Jacksonville?
Buyers focus on operational maturity, growth potential, and the quality of the technology platform (scalable, secure, user-friendly). They also examine Florida’s regulatory specifics, payer mix, contracts, and the overall stability and management quality to ensure the practice is a sound investment.
Who are the primary buyers of telehealth practices in Jacksonville and why?
Primary buyers include private equity firms looking to build larger networks with capital and operational expertise, strategic buyers such as large hospital systems wanting to expand digital access, and consolidators aiming to merge smaller practices for better technology and negotiating power.
What are the main steps involved in selling a telehealth or digital therapy practice in Jacksonville?
The sale process includes four phases: Preparation (financial analysis and valuation), Marketing (approaching qualified buyers), Negotiation and Due Diligence (selecting offers and detailed buyer review), and Closing (finalizing legal documents and completing the sale). Expert guidance is essential throughout these stages.
How is the value of a telehealth practice in Jacksonville determined?
Value is based on Adjusted EBITDA (earnings adjusted for true cash flow by normalizing owner salary and removing one-time expenses) multiplied by a multiple reflecting specialty, scale, and growth. This method often reveals higher practice value than just looking at reported income.
