Our Buying Services
Your Complete Aesthetics & Wellness Brokerage Solution
Acquiring a practice can feel overwhelming, but with our extensive experience and knowledge, we’re committed to making the process as seamless and stress-free as possible.
When considering the purchase of an aesthetics or wellness practice, you might wonder, “What’s the right path for me? Should I buy an existing practice or start from scratch?” Each option comes with its own advantages and challenges, which is why having a trusted brokerage team to guide you through the decision-making process is essential. Since buying a practice is a major commitment, it’s imperative to partner with a brokerage that has the experience and a strong track record of success to ensure your journey is a successful one.
LuxMed not only provides expert guidance but also delivers:
- In-depth understanding of the competitive landscape in the aesthetics and wellness industries, including medspas, dermatology clinics, plastic surgery practices and more
- Analysis of client demographics in your target area
- Expertise in evaluating practices to determine fair market value
- Access to financial resources for acquisitions and practice improvements
- Comprehensive knowledge of real estate, legal, accounting and strategic aspects
- A full range of transition services, all under one roof
As a nationwide brokerage, we offer a wide array of aesthetics and wellness practice opportunities across the country. Explore our Practices for Sale to find the perfect fit for your needs. If you have specific criteria or preferences, contact us directly or create your buyer profile today.
This will give you priority access to new practice listings before they hit the market, ensuring you’re among the first to know.
Guide to Purchasing an Aesthetics or Wellness Practice
1
Partner with an experienced broker
Working with a seasoned broker ensures you stay focused and make the most of your time by navigating the process with expert guidance tailored to your needs.
2
Get pre-qualification from a bank
A bank will assess your financial standing, including income, debt and capacity to handle the loan, to evaluate your creditworthiness and set key financial ratios.
3
Evaluate the practice
After pre-qualification, conduct a thorough analysis of potential practices to understand their operations, financial health and market positioning.
4
Submit a Letter of Intent (LOI)
Express your genuine interest by issuing a non-binding LOI, outlining the proposed terms and conditions for the purchase.
5
Make your offer
With bank pre-approval secured, confidently submit your offer to purchase the practice. Keep in mind that final approval may depend on the practice type.
6
Negotiate terms
Engage in negotiations with the seller until both parties agree on the price, terms and closing details.
7
Perform due diligence
EEnter the due diligence phase, where you and your advisors carefully review the practice’s financials, operations and compliance.
8
Finalize the purchase agreement
Draft and finalize the asset purchase agreement, detailing all terms and conditions agreed upon during the negotiations.
9
Secure financing
Once the purchase agreement is signed, complete the necessary paperwork to finalize your loan for the practice acquisition.
The Loan Process When Purchasing an Aesthetics or Wellness Practice
The first step in securing a loan is obtaining pre-qualification. Once that’s in place, you can begin searching for aesthetics or wellness practices that match your specialty (e.g., cosmetic or plastic surgery, medspa, dermatology clinic), location, size and specific needs.
After identifying a potential practice, you’ll enter the underwriting phase with the bank. This process can be detailed and time-consuming, requiring you to provide extensive documentation proving your financial capability to support the acquisition. The length of this phase varies, typically taking several weeks to a few months. During this time, your broker will often coordinate with the seller to collect the necessary documents, relieving you of much of the administrative burden. At LuxMed, we work to make this process as smooth as possible, saving you time, stress, and potentially money.
Once the bank makes its funding decision, a closing date will be scheduled and the funds will be disbursed to finalize the purchase of the practice. Choosing the right bank is critical — and it’s not always about securing the lowest interest rate. While the rate is important, you should also consider the loan term, the bank’s experience in aesthetics and wellness practice lending and its overall reputation.
When making a major investment — whether you’re acquiring a new or existing practice — your primary focus should be on the return on investment (ROI). In calculating ROI, it’s important to factor in the time value of money: a dollar today is worth more than a dollar in the future. Additionally, consider the opportunity cost of your decision, as this can have a significant impact on your financial outcome.
Building Your Team of Trusted Advisors
One of the first and most important steps for any buyer, especially those new to the process, is assembling your advisory team. It’s essential not to rush into choosing the first candidate you meet for each role. Take your time to consult with multiple options to understand what each advisor or firm brings to the table.
When making your final decision, prioritize working with those you feel most comfortable with, rather than focusing solely on the cost of their services. If you need referrals or recommendations, the team at LuxMed is always here to help.
Practice
Consultant
Banks
CPA/CFA
/Attorney
Technology
Advisor
Contractor/
Architect
Insurance Agents
Marketing Professionals
Starting an Aesthetics or Wellness Practice
The typical startup costs for launching an aesthetics or wellness practice can reach around $500,000, factoring in both loans and initial capital. For many new professionals already carrying significant student loan debt, this can mean starting out with nearly $1 million in total debt before even seeing your first client.
Given this financial reality, it’s wise to work with an expert broker to help you navigate the acquisition process, whether you’re building a practice from the ground up or purchasing an existing one. At LuxMed, we specialize in guiding you through each step, helping you avoid costly mistakes and ensuring a smoother transition.
In most cases, we recommend purchasing an established practice rather than starting from scratch, as it often provides a stronger ROI. Acquiring an existing practice can also help you prioritize paying down student loans more efficiently.
While failure rates for aesthetics and wellness practices are relatively low, not all practices operate at peak profitability or offer fair terms for both buyer and seller. Partnering with an experienced broker can greatly increase your chances of a successful acquisition.
How Do You Value an Aesthetics or Wellness Practice?
Once a practice catches your eye, the next crucial step is determining its accurate valuation. This process starts with obtaining the practice prospectus — a concise document that captures the key details of the practice, typically around 20 pages in length. The prospectus serves as the foundation for evaluating the practice’s financial health, operations, and growth potential.
How to Understand an Aesthetics or Wellness Practice Prospectus
Information included:
- Overview of the practice
- Doctor’s biography and staff profiles
- Area demographics
- Procedure evaluations
- Procedures offered
- Location and facility details
- Equipment inventory
- Analysis of active and new patients
- Financial data
- Visual documentation of the practice
Key Components:
- Facility details and location
- Patient base and demographic information
- Range of procedures offered
- Total revenue generated
- Anticipated net income
- Capital expenditure projections
The Aesthetics or Wellness Practice Prospectus Essentials
The Significance of Location
A thorough analysis of the competitive landscape and demographics surrounding an aesthetics or wellness practice is vital, as it directly affects future profitability and overall practice value. Keep in mind that just because a practice is located in a trendy or rapidly growing area doesn’t necessarily mean it’s the best fit for your business.
Typically, practices in urban or suburban areas tend to have higher valuations compared to those in rural locations. Practices in high-demand areas like Los Angeles, New York or Miami Beach may have elevated values, but they also come with increased operational costs. However, don’t count out rural areas because they can have strong, steady cash flow and lower operational costs.
Competitive Terrain
Evaluate the competition in the region you’re considering. Are other practices offering similar services? How established are they? What differentiates your practice? Understanding your competitors and clearly defining what unique value or benefits your practice will bring to the local market is key to thriving in a competitive environment.
Area Characteristics
It’s essential to closely examine the demographic profile of the area surrounding your potential practice. Consider population trends, age distribution, income levels, common professions, average educational attainment, ethnic composition and how well the community’s lifestyle aligns with your practice’s brand. These factors are critical when analyzing the demographic data within an aesthetics or wellness practice prospectus.
Growing a Practice
When purchasing an established practice – regardless of if it’s a dermatology clinic, a medspa or anything in between – it’s important to assess its current growth trajectory. While reviewing the prospectus and financial details, determine whether the practice is expanding or declining. Consider what this means for your specific niche and whether additional investments in marketing, operations, or other areas will be required to achieve your goals.
LuxMed is here to help you fully understand an aesthetics or wellness practice prospectus, guiding you through each section so you can make an informed and confident decision.
From the start of your search to the final stages of closing, LuxMed will be by your side, supporting you every step of the way
As one of the leading aesthetics and wellness brokerages in the country, we have the expertise and insights needed to guide you through every stage — from your initial search to securing financing and closing the deal, and beyond. Our goal is to work alongside you to ensure a smooth and successful transition.
