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

The market for telehealth and digital therapy in Maryland is experiencing unprecedented growth. For practice owners, this presents a significant window of opportunity. Selling your practice is more than a transaction. It is a major life decision that involves your legacy, your staff, and your financial future. This guide provides a clear overview of the market, key considerations for selling, and how to position your practice to achieve its maximum value.

Maryland’s Telehealth Market: A Surge in Demand

The timing for selling a telehealth practice has never been better. The market is not just growing; it is exploding. This creates a favorable environment for practice owners looking to transition.

A National Surge

On a national level, the telehealth market is projected to grow at a compound annual growth rate of over 19%. This isn’t just a temporary trend. It is a fundamental shift in how healthcare is delivered. Investors and larger healthcare organizations are actively seeking to acquire established digital health platforms to meet this soaring patient demand.

The Maryland Advantage

Here in Maryland, the outlook is equally strong. Reports from the Maryland Health Care Commission confirm significant local telehealth adoption. The behavioral healthcare sector is a particular bright spot, with patient demand far exceeding the current supply of services. This imbalance makes well-run digital therapy practices in the state highly attractive acquisition targets for buyers looking to expand their footprint.

Key Considerations Beyond Market Hype

A strong market is a great starting point, but a successful sale depends on the details of your specific practice. Sophisticated buyers will look past the hype and scrutinize your operations. You need to have your house in order. Key areas of focus include Compliance with all Maryland State Telehealth Laws, which dictate everything from licensing to standards of care. Buyers will also deeply analyze your Reimbursement structure. Demonstrating a clear and successful strategy for navigating payment systems, especially with policies like the Medicare telehealth flexibilities, is crucial. Finally, your Technology infrastructure must be reliable, secure, and scalable. A clunky or outdated platform is a major red flag for any potential acquirer.

What Buyers Are Looking For Right Now

Many owners think they should only begin planning when they are 100% ready to sell. Actually, that is often too late. The best time to start preparing is one to two years before your target sale date. Buyers do not pay for potential. They pay for proven results. In today’s competitive M&A environment, buyers are looking for a few specific things:

1. Proven Profitability. Your financial records need to be clean and clearly demonstrate consistent cash flow. This is the foundation of any serious conversation.
2. A Diverse Provider Base. Practices that are not overly reliant on a single owner or provider are seen as less risky and command higher valuations.
3. A Clear Growth Story. Buyers acquire practices for their future potential. We help you frame a compelling narrative around your practice9s unique strengths and opportunities for expansion, whether through new service lines or geographic reach.

Navigating the Practice Sale Process

Selling your medical practice is a structured process with several distinct phases. First is the Preparation and Valuation stage, where you prepare your financials and get a clear, objective understanding of what your practice is worth. Next is Confidential Marketing, where we present the opportunity to a curated database of qualified buyers without your name or practice details being publicly listed. This creates competitive tension to drive up value. Once interest is established, you move into Due Diligence. This is an intense period where the buyer verifies all financial, operational, and legal aspects of your practice. It is where many self-managed deals encounter unexpected problems. The final stage is Closing, where legal documents are signed and the transition of ownership is completed.

Understanding Your Practice’s True Value

Many practice owners mistakenly believe their practice9s value is based on net income. Sophisticated buyers, however, value you based on a metric called Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is “adjusted” to normalize for owner-specific expenses, like an above-market salary or personal car lease, to show the true cash-generating power of the business. That Adjusted EBITDA figure is then multiplied by a specific number (a multiple) to determine your practice’s enterprise value. That multiple is not random. It is influenced by several key factors.

This is why a professional valuation is so important. We often find that practices are worth significantly more than their owners believe once the financials are properly presented.

Planning for Life After the Sale

Securing the highest valuation is only one part of a successful exit. The structure of the deal itself is just as important. For owners who are not ready to retire completely or want to participate in the future growth of their practice, modern deal structures offer compelling options. An Equity Rollover allows you to retain a minority stake in the new, larger entity. This gives you a “second bite at the apple” when that larger platform is eventually sold. An Earnout provision provides additional payments over one to two years if the practice hits certain performance targets post-sale. These structures can help bridge valuation gaps and align your interests with the new owner. They prove that control is not a simple on/off switch. It can be a sophisticated partnership that protects your legacy and maximizes your financial outcome.