We have the Med Spa Sales expertise and game plan to sell your practice
efficiently while maximizing your sales price!
Thinking of Selling To PE? Don't go at it alone.
At 1st Med Transitions, we know that Selling to a MSO (Management Service Organization) or a Private Equity firm without the right expertise and guidance can be a daunting task. There are a number of factors to consider and our Med Spa Sale Advisors are well aware of the benefits and the pitfalls to avoid. As the List of Med Spa MSO and PE Companies in the market has grown, so has our relationships with local, regional and national MSO's and Private Equity firms.
When selling to or affiliating with a Managment Service Organization, you have the potential for a much larger selling valuation for your practice than in a traditional doctor-to-doctor / private transactions. We have seen as much as 125% to 300% of yearly revenue and up to 10X Adjusted EBITDA. However, it is important to keep in mind that there is more to a sale, than just the price. A MSO Med Spa Group will typically require a seller to continue to work at the practice post sale for a pre-determined amount of time (usually 3 - 5 years). This length of employment commitment will also affect the valuation and how the sales price monies are disbursed to the seller.
If you have a larger Med Spa practice, there is a good chance you have already received unsolicited offers or been contacted from MSO Med Spa Groups attempting to negotiate with you directly. We understand this can be tempting, but there is a chance that you will be missing out on more favorable deal terms/structure and a higher overall sales price. Partnering with or selling to a MSO or PE Backed Group is an enormous decision for a Med Spa practice owner and not something you should undertake without the proper representation.
When you sell to a MSO Med Spa Group with 1st Med, we make sure to walk you through every step of the sales process.
This is the first and most important step in the process. We will discus your goals, objectives and timeline for sale and of course, answer any questions you may have. We will asses your current situation and determine if your practice is a good DSO candidate. We'll inform you on what MSO's are looking for and the different deal structures we are actively seeing in the marketplace.
If we think you are a good MSO / PE transition candidate, your transition advisor will request financial's, practice reports and a practice profile to be provided. We will work with you to determine a current EBITDA valuation as this is the main metric the corp. buyers use to value your practice. Many of our industry competitors charge between $7K and $15K for their EBITDA analysis. At 1st Med, we never charge up-front fees and only earn our commission when your practice is sold!
We'll package and confidentially present your Med Spa practice in a professional and secure manner to potential buyers. Our goal is to maximize the interest and pool of potential MSO and PE-Backed buyers for your Med Spa. The more competition we can generate, the higher the potential for sale, preferred deal structure and maximum enterprise value.
One of the most overlooked part of the Med Spa Corporate Sales process is the deal strucure negotiation. We'll assist you in reviewing multiple offers and help determine which is the best fit for you personally and your practice moving forward. Remember, not all offers are created equal and the same goes for MSO's.
Once you have determined the best deal structure and culture for your practice, we'll accept the LOI and move into Due Diligence. The difference between a closed transaction and a failed one, can many times comes down to the attention to details. Corporate Buyers are more sophisticated than independent Med Spa owners and the due diligence process is typically more thorough. We will work with the buyer on third-party quality of earnings review, detailed practice reports, and sales contract negotiations.
There are a number of aspects that lead to a successful closing - deal structure, non-competes, escrow, representations and warranties and transitions agreements. We stay on top of every step in the process from the marketing, letter of intent, due-diligence to the purchase & sale agreement and ultimately closing.
If you are considering selling your med spa practice to a MSO / PE-Backed group, or just want to get a sense of what a potential corporate sale would look like for you and your practice, we would be happy to discuss further.
To get started, complete our Med Spa Sales Consultation Form Here and you can schedule a call with one of our Senior Transition Advisors.
Don't hesitate to contact myself or one of our Transition Advisors.
Senior Transitions Officer
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years of industry experience
satisfied clients and counting
in closed practice transactions
Sold / Affiliated With A DSO
"Mike and his team know the DSO business very well and they take good care of their clients.
I would definitely recommend using 1st Med Transitons if you are in the market to sell to a DSO."
Sold To A Private Buyer
"David didn't miss a beat. He was friendly, informative, responsible, and responsive to all of my questions and concerns from start to finish of the entire process.
I couldn't have been more pleased with David and the company as a whole"
"The professionalism, patience and tolerance David demonstrated... was remarkable.
His commitment to our practice well-being and our professional future well-being was truly unmatched."
"Michael did a wonderful job of explaining to me the process,
introducing me to a variety of different groups and helping me to find the best fit and value for my situation. "
"I have worked with other brokers in the past but working with David was a true pleasure.
He managed to make an inherently stressful process as smooth as possible and was consistent in sincerely seeking my best interest every step of the way."
Anne Arundel County, MD
Complete our Sales Consultation Form Here and one of our Senior Transition Advisors will contact you to discuss your current and long-term goals and learn more about your pracitce.
Our Senior Transition Advisor will work with you to review your financials and PMS reports to determine an accurate EBTIDA Analysis. With your input, we will determine a valuation multiple expectation and preferred MSO / PE strucuture to meet your future / exit planning goals.
We will confidentially market your practice for a MSO sale / partnership through our preferred MSO contacts and maximize your value by generating as much interest as possible!
Contact one of our experienced Dental Transition Advisors at (800) 815-0590.