Top Tips for Selling Your Aesthetics or Wellness Practice

Selling an aesthetics or wellness practice can be one of the most significant financial decisions of your career. Whether you own a medspa, dermatology clinic, plastic surgery practice or other wellness-focused business, preparing your practice for sale requires careful planning and strategic execution. Getting the right price and ensuring a smooth transition depends on a variety of factors, from optimizing your practice’s value to choosing the right buyer, such as an individual practitioner or Medical Support Organization (MSO).

In this blog, we will explore the top tips for selling your aesthetics or wellness practice to help you get the best deal and ensure a successful transaction.

1. Get a Professional Practice Valuation

The first and most critical step in selling your aesthetics or wellness practice is obtaining a comprehensive and accurate valuation. Knowing what your practice is worth will guide your entire transition process. A proper valuation takes into account multiple factors, such as:

• Current revenue and profitability
• Patient base and retention rates
• Service offerings and specialization
• Location and competition in the market
• Operational efficiency and staff expertise

While many practice owners may be tempted to set a price based on their own estimation or hopes for future growth, buyers — especially MSOs and private equity-backed groups — will focus on your current financial performance and market position. An experienced aesthetics practice broker or wellness practice broker can guide you through the valuation process and ensure that your practice is priced correctly to attract serious buyers.

2. Prepare Your Financials and Records

Once you’ve obtained a valuation, it’s crucial to have all of your financial records and operational documentation in order. Buyers will want to perform thorough due diligence to assess the health of your practice, and having well-organized financials will make this process smoother and more efficient.

Ensure that your financial statements, profit and loss statements (P&Ls), tax returns and any outstanding debts or liabilities are clearly documented. Clean financials not only inspire confidence in potential buyers but also minimize delays during negotiations. Buyers will closely examine:

• Revenue trends over the past few years
• Profit margins and cost structures
• Patient acquisition costs
• Any existing contracts with suppliers, landlords or staff

By preparing your financials in advance, you demonstrate that your practice is well-managed and transparent, which is essential for securing a favorable deal.

3. Maximize Your Practice’s Value Before Selling

To get the best possible price for your practice, it’s essential to optimize its value in the months (or even years) leading up to the sale. Here are some key ways to improve the attractiveness of your practice to potential buyers:

• Enhance Patient Retention: A loyal patient base is a significant asset to any practice. Ensure your patients are satisfied with their care and implement programs to encourage repeat visits, such as loyalty programs. Consistent revenue from loyal patients will increase the perceived stability and value of your practice.
• Streamline Operations: Buyers place a premium on practices with efficient administrative systems and workflows. Invest in technology such as electronic medical records (EMR) systems, patient management software and automated billing systems to improve efficiency and reduce overhead costs.
• Expand Service Offerings: Consider adding high-demand services that align with current market trends, such as non-invasive cosmetic treatments or wellness services like IV therapy or massage therapy. Expanding your offerings can make your practice more appealing to buyers seeking growth potential.

By addressing these areas, you can increase your practice’s profitability and operational appeal, which can lead to a higher valuation and stronger negotiating position.

4. Understand Your Buyer Options

There are several types of buyers interested in acquiring aesthetics or wellness practices, each with different motivations, financial capabilities and expectations. Understanding the types of buyers and selecting the right one can significantly impact your sale’s outcome. The most common buyer types include:

• Individual Buyers: Individual practitioners, often from within the industry, are interested in acquiring practices to expand their own businesses or enter the market. Individual buyers are often looking for turnkey operations with established patient bases, experienced staff, and solid operational systems. However, individual buyers may have limited financial resources compared to institutional buyers, and they may require more flexible financing terms.

• Medical Support Organizations (MSOs): MSOs have become increasingly active in acquiring aesthetics and wellness practices. These often private equity-backed groups bring significant operational expertise and financial resources, which often allows them to offer higher valuations compared to individual buyers. MSOs provide centralized services like HR, billing, marketing and regulatory compliance, helping practices improve efficiency and scalability. MSOs are ideal buyers if you’re looking to scale your practice, retire or strike a better work-life balance by reducing clinical capacity and offloading administrative responsibilities.

5. Work With an Experienced Broker

Working with a wellness practice broker or aesthetics practice broker can make a tremendous difference in the success of your sale. An experienced broker will:

• Market your practice to the right buyers: Brokers have access to a wide network of pre-qualified buyers, including MSOs, private equity groups and individual practitioners, ensuring that your practice reaches the right audience.
• Negotiate the deal on your behalf: Negotiating the terms of the sale — such as custom-tailoring an effective deal structure and guiding the transition period — can be complex. A skilled broker will handle negotiations to ensure that you receive a fair deal and that the sale aligns with your financial goals.
• Guide you through the process: Selling a practice is a complicated process that involves legal, financial and operational considerations. A broker will guide you through each stage, from listing the practice to closing the deal, ensuring that the process runs smoothly and that your interests are protected.

6. Consider the Deal Structure Carefully

When selling your practice, the deal structure is just as important as the purchase price. There are several deal structures that practice owners can leverage, depending on their goals:

• 100% Buy-Out or Affiliation: The MSO or buyer pays the entire sale price upfront in a lump sum. This is ideal for practice owners who want a clean break and immediate financial liquidity.
• Joint-Venture Model: In the joint venture model, aesthetics or wellness practice owners can sell a significant portion (60% to 90%) of their practice, securing a lump sum payment upfront while maintaining an equity stake (10% to 40%) in the business. This model is ideal for practitioners who want to capitalize on their years of hard work without stepping away from the practice entirely. Owners retain control over clinical decisions, while also benefiting from the resources and support provided by the partner, such as marketing, technology upgrades, or operational efficiencies. This shared investment encourages growth while offering both short-term liquidity and long-term financial upside.
• Equity Roll: In an equity roll, practice owners sell 100% of their practice to a larger group or management organization but retain a portion of their equity by reinvesting in the parent company. This allows the practice owner to diversify their personal assets while still benefiting from the broader growth of the organization. The equity roll model is often used by owners looking for a clean exit strategy over time while maintaining some financial stake in the continued success of the industry. This model works well for practice owners ready for a leadership change but wanting to leverage their expertise and reputation in the market’s future growth.
• Sub-MSO: This type of transaction blends elements of a joint venture and an equity roll. For owners of aesthetics or wellness clinics, it often means transitioning with a substantial upfront payment while remaining debt-free. Typically, the clinic owner retains a 40% stake and shares in the profits of the MSO portfolio. In this structure, equity isn’t tied to the individual clinic but is instead held in a broader entity, allowing for growth opportunities. Returns are realized through multiple avenues, including equity appreciation, profit sharing, and a potential payout when the parent company undergoes a recapitalization.
• Direct to Private Equity (PE): If your aesthetics or wellness practice is well-established and thriving, you don’t necessarily need to partner with a larger corporate network. A direct investment offers an alternative where an investor acquires ownership in your clinic’s operations without involving a broader organization like a management group. The specifics of ownership transfer can vary — ranging from a full buyout, where the investor assumes majority control, to a minority stake aimed at fueling growth. In some cases, this type of investment could even position you as a founding partner in a new management group, should you decide to pursue that path.

Each structure has its benefits, and working with your broker and legal team to determine which deal best aligns with your financial goals is critical.

7. Plan for the Transition

Once the sale is finalized, it’s essential to plan for a smooth transition. Buyers will want assurance that the practice will continue to operate smoothly without disruptions to patient care or operations. Depending on the buyer and deal structure, you may need to stay on for a set period to help with the transition, which could involve:

• Introducing the new owner to key staff and patients
• Helping the buyer understand existing workflows and systems
• Assisting with training staff on new processes

A well-planned transition ensures that the practice continues to thrive and that the new owner is set up for success.

Bottom Line

Selling your aesthetics or wellness practice is a significant decision, but with careful preparation and the right strategy, you can achieve a successful and rewarding outcome. By understanding the market, optimizing your practice’s value and working with an experienced aesthetics practice broker or wellness practice broker, you can secure the best possible deal for your business.

If you’re considering selling your practice or want to learn more about the process, contact us today. We specialize in helping practice owners navigate the complexities of selling to MSOs, private equity firms and individual buyers, ensuring that you get the best possible outcome for your practice.