Guide to Selling a Telehealth & Digital Therapy Solutions Practice in Washington, DC

The market for telehealth and digital therapy is experiencing unprecedented growth, and Washington, DC is at its center. This has driven M&A activity to record highs. For practice owners, this climate presents a significant opportunity. But achieving a premium valuation requires more than good timing. It requires strategic preparation. This guide provides insight into the DC market, the selling process, and how to position your practice for a successful exit.

Market Overview

The Washington, DC telehealth market provides a dynamic environment for practice owners considering a sale. Understanding these forces is the first step toward a successful transition.

A Market in High Demand

The demand for accessible digital therapy and mental health services has never been higher. This is driven by a combination of increased patient acceptance and the ongoing need for convenient care solutions. As a result, profitable telehealth practices, where providers can see significant returns, have become highly attractive assets. The integration of new technologies like Artificial Intelligence (AI) is only accelerating this trend, promising to improve both patient outcomes and financial performance for practices that are prepared to adapt.

The Consolidation Wave

Across the country, we are seeing a wave of M&A activity, with behavioral health being a key focus for investors. Buyers, from large health systems to private equity platforms, are actively seeking to acquire established telehealth companies to gain market share. For a practice in a strategic hub like DC, this means you are not just selling a book of business. You are selling a foothold in one of the nation’s most important healthcare markets.

Key Considerations

While the market is strong, selling a telehealth practice in Washington, DC involves navigating a unique regulatory landscape. Buyers will scrutinize your compliance and long-term viability.

Your practice must have a clear record of adherence to DC’s licensing requirements, which are the same for telehealth as for in-person services. You also need a firm grasp on the local reimbursement environment. While DC law mandates coverage for many telehealth services, different insurers have specific rules. Proving you have successfully navigated this is a key selling point.

The most significant consideration is the upcoming federal policy shift. Key telehealth flexibilities are set to expire on September 30, 2025. A buyer will want to know exactly how you are prepared for this. Having a proactive plan demonstrates foresight and stability, directly increasing your practice’s value.

Market Activity

In today’s competitive M&A environment, buyers are looking beyond simple revenue figures. They are acquiring platforms for future growth. Based on recent transactions we’ve advised on, here are three things buyers in the DC telehealth space are prioritizing:

1. A Well-Defined Niche and Patient Base. Buyers are not looking for generalist practices. They want a demonstrated history of serving a specific patient population with proven outcomes. A strong, loyal patient base is a sign of a healthy, defensible business.

2. Scalable and Secure Technology. Your technology platform is a core asset. Buyers will perform deep diligence on its security, stability, and ability to scale. A practice that has invested in a robust and compliant tech stack is far more attractive than one relying on disparate, off-the-shelf solutions.

3. A Clear Path to Post-Transition Stability. An acquisition is only successful if the practice continues to thrive. This means having a plan for provider retention and a business model that is not entirely dependent on the owner. Buyers pay a premium for continuity.

Sale Process

Many practice owners believe selling is about finding a single buyer. A successful sale is a structured process designed to create competitive tension and protect you from surprises. It begins long before the practice is ever presented to the market.

The first step is preparation. This involves organizing your financials, clarifying your growth story, and understanding what your practice is truly worth. Next, a confidential marketing process is run to identify and vet a pool of qualified buyers. This is not about listing your practice publicly. It is about targeted outreach.

Perhaps the most critical phase is due diligence. This is where the buyer examines every aspect of your business, from patient records to technology contracts and regulatory compliance. Being thoroughly prepared for this step is what separates a smooth closing from a failed deal. An experienced advisor guides you through each stage, ensuring you are ready for the scrutiny and can negotiate from a position of strength.

Valuation

Determining the value of your telehealth practice is not just about looking at last year’s revenue. Sophisticated buyers use a method centered on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your true cash flow after normalizing for any owner-specific or one-time expenses.

This Adjusted EBITDA is then multiplied by a number (the “multiple”) to arrive at your enterprise value. The multiple is not a fixed number. It changes based on risk and growth potential. For a telehealth practice, buyers look closely at specific factors. A practice that is well-prepared can command a significantly higher multiple.

An accurate valuation is the foundation of a good exit strategy. It tells you where you stand today and provides a roadmap for increasing value before you sell.

Post-Sale Considerations

The day the deal closes is not the end of the journey. The structure of your sale has lasting implications for your team, your legacy, and your final take-home proceeds. Thinking about these issues in advance is critical.

A key concern for any buyer is provider retention. A plan to keep your clinical team engaged and motivated through the transition is valuable. It ensures continuity of care for patients and stability for the new owner.

You also need to consider your own role. Do you want a clean break, or would you prefer to stay involved? Deal structures like an earnout, where you receive additional payments for hitting performance targets, or an equity rollover, where you retain a stake in the larger new company, are common. These options can align your incentives with the buyer and give you a second financial reward when the new, larger entity is eventually sold. Planning for these possibilities ensures the transition protects what you have built and aligns with your personal goals.