![]() ![]() How Much Can Owners Get for Their Practice? For example, a $1.5 million med spa might have an EBITDA around $400,000. In other words, it represents your practice’s profitability. EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization and is a simple way to understand free cash flow. The primary way to value your med spa is by calculating EBITDA. Regardless of size, there is a market for YOUR med spa to successfully sell. Single locations can find interested strategic buyers. On the other hand, some buyers come into the market looking for many locations but are willing to whittle it down to an organization with fewer locations and a “secret sauce.” Success and profitability matter more than physical locations.Īnd while some private equity groups don’t look at any business over $5 million, some firms can’t even go that high. But an MSO could mean five locations, or it could mean 30. ![]() Some med spa private equity firms want a developed MSO platform, so a single location won’t be the right fit. The short answer is that it depends on the buyer. What Are Buyers Looking for in a Medical Aesthetics Practice? Because this industry primarily functions with cash payment up front (as opposed to insurance payments), it creates a frothiness in the market. Firms want to invest dry powder for a higher return on investment, and med spas offer high margins.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |