Month: May 2024

Selling a med spa is a big moment for an owner, and there are many reasons why you might be considering it. Maybe it’s to fund a different pursuit. Perhaps it’s to expedite your retirement. 

Regardless of your reason, you may now realize you’re unsure how to sell your med spa. You’ve likely never sold a business before and probably have questions. There are countless fine details about the industry and best practices of clinic transitions to be aware of, and the stakes are high. Feeling overwhelmed by the process is normal.

Luckily, Triumphant Partners is here to help. We know that selling something you’ve spent so much time and energy on is daunting. To help, we’ve assembled a step-by-step guide on how to sell your med spa. Read on to learn how to sell your med spa on your terms! 

Know Your Worth

Selling without knowing your value is a difficult task. Without a clear understanding of what your med spa is worth, you won’t be able to gauge and respond to potential offers appropriately. This lack of understanding dramatically increases the chances of two things. First, you either ask for far more than your med spa is worth and reject qualified offers with your asking price. Second, you accept a lowball offer and leave money on the table. An accurate and level-headed assessment of your med spa’s value is critical. 

The problem is that gauging the value of a med spa isn’t always easy. There are multiple ways of valuing a med spa, and many owners are unprepared to execute these evaluations. Many will try to look at collections within a year; others might look at the value of all owned assets within the med spa. 

These approaches can be worthwhile, and utilizing multiple evaluation methods is great. Still, we recommend focusing on a med spa’s Earnings Before Interest, Taxes, Depreciation, & Amortization (EBITDA). This is a tried-and-true method for evaluating the profitability of a med spa and one that lets you compare different med spas across the same metric. The higher the EBITDA, the higher the profitability of the med spa in question. 

That being said, it’s always a good idea to set yourself up for success when it comes to the numbers. At Triumphant Partners, we recommend aiming for at least 25% profit margins and collections above 2MM. This tends to be where we start to see the best results in getting the best value when looking to sell your med spa. So, if you’re considering selling, be sure to take a close look at the numbers to gauge where you’re at and what sort of value you can expect to see.

If your numbers aren’t quite there yet, we can help you get there using our best practice formula and metrics system during a courtesy consultation call. Our team of experienced and trusted advisors will guide you every step of the way and work with you and our healthcare CPAs to ensure you get optimal results and put you in the best position to sell for maximum value. 

Find Qualified Buyers

The more qualified buyers you’re discussing your med spa with, the better your odds of finding a favorable deal for all parties involved. Any single deal could peter out any time, so having multiple solid, invested buyers is always a best practice. After all, it’s better to have more than one iron in the fire. Seems simple, right? 

The problem is that finding qualified buyers isn’t always so easy. A potential buyer might sound interested but could easily flake before the deal moves forward, wasting a great deal of your time. This waste of time prevents you from investing time and energy with more qualified buyers and potentially more fruitful deals, ultimately harming your med spa sale process. To counteract this, you must qualify buyers to the best of your ability. 

This, of course, isn’t always easy. A potential buyer might look like the perfect match and then not be the right fit for your specific needs as a seller. Still, establishing a clear definition of your ideal buyer persona and a few litmus tests to qualify a buyer will save you time, energy, and stress and ultimately help you sell your med spa at your price. Once you have this framework to utilize, you’ll be able to quickly determine if a buyer is a good fit or not, thus saving you time and energy. 

Know The Industry 

Whether for a med spa or other medical specialty, practice sales is a complicated and convoluted business. The industry is constantly changing, and marketing, selling, and transitioning a med spa is part science and part art. 

If you’re looking to sell your med spa, partner with a practice transition expert to maximize your efficacy and sell your med spa on your terms and timetable. That’s where the team at Triumphant Partners enters the picture!

Call Triumphant Partners 

Your med spa is the product of intense blood, sweat, and tears on your part. Entrust that med spa’s sale to a team dedicated to getting you the most efficient and favorable deal possible. The Triumphant Partners team is here to assist with:

• Free Med Spa Evaluations
• Help Qualifying Buyers
• Consultative Advice On Trends Within The Industry

When looking into how to sell your med spa, you must have seasoned industry experts in your corner. Call Triumphant Partners today for a courtesy consultation and to discuss how we can help you sell your med spa!

If you’re considering selling your practice, you’re naturally excited about the process. Selling your dental practice is a huge step for most dentists and one of the most critical transitions in your life. The sale of your practice offers you many opportunities and, if done correctly, can be an excellent springboard into another career, business venture, or stage of life. 

However, selling your practice isn’t always straightforward and can frustrate many dentists. What’s more, the decision to sell to a dental support organization (DSO), dental partnership organization (DPO), or a private buyer is a critical one to consider. Each potential buyer offers unique benefits and disadvantages and may be better suited to specific practice goals. Knowing the pros and cons of selling a dental practice to a DSO or a private buyer is paramount as you continue to explore selling your private practice. 

The experts at Triumphant Partners have a quick run-through of the pros and cons of selling to a DSO or private buyer to help you make an informed decision. To help you think through your goals, we’ve developed this blog as a series of questions to ask yourself along the way. Ask yourself these questions and consider which option seems to be the best for your specific situation. Read on to learn more! 

Do I Want To Stay at the Practice?

Consider whether you want to stay at your practice as you contemplate selling. Many dentists love dentistry but find themselves overwhelmed by the sheer number of tasks and duties they need to handle as a dentist. For these dentists, patient care is rewarding and fulfilling, but responsibilities like payroll, procurement, hiring, and marketing eat into their free time. Soon, these dentists find themselves working overtime just to manage their practice and increasing their odds of burning out as they do. 

Selling to a dental support organization makes the most sense for these dentists. DSOs have put time and resources into developing the processes, systems, and playbooks to streamline the operational efficiency of any practice. Adding a dental support organization thus means that the dentists in question can focus on their patient care and leave the operational items to the DSO. If you’re a dentist looking to stay at your practice, a dental support organization makes a lot of sense and could be a great way to advance your work-life satisfaction. 

Do I Want to Leave?

Is your end goal leaving the practice of dentistry? Maybe you want to pivot to another field, but dentistry isn’t in the cards for you at this point. If this describes your situation, the right dental support organization or private buyer could be a good fit. It will really depend on your ability to assess your unique situation. Private buyers are not confined by a dental support organization’s policies and best practices, and many dentists find it easier to sell to these persons and entities. Often, a DSO or DPO will have a much cleaner process for transitioning a dental practice, and many dentists enjoy knowing that their staff and patients are in good hands. 

It’s also important to consider whether or not you’re looking to completely walk away from your practice post-sale. If you’re looking to leave your dental practice, relocate, or retire, then a private buyer is typically going to be in your best interest. Why? A DSO/DPO will expect a certain time commitment from you post-sale, while a private buyer transition will have little to no restrictions in place for staying on at the practice. 

Do I Have a Specific Goal to Fund? 

Many dentists view the sale of their practice as the first step towards a financially profitable future. If you have a specific goal you wish to fund with the sale of your practice, your selling process will look different. Maybe you want to retire. Perhaps you want to put the proceeds towards a new business venture. Regardless of your specific goals, selling to the right private buyer or DSO is critical. 

A private buyer could be the right fit if you have a specific potential buyer you’re considering, like another dentist or one of your practice’s associates. And even if you don’t have a particular dentist in mind, our team can help you find the perfect private buyer for your practice.

Inversely, many DSOs and DPOs have larger budgets, so if you’re looking to maximize the sale of your practice, a DSO or DPO could net you a higher offer. Regardless of whether you choose to sell to a private buyer of DSO/DPO, Triumphant Partners can help you find the right buyer for your unique situation. 

Contact Triumphant Partners

Selling a dental practice is hard, but working with Triumphant Partners is easy. There are a lot of essential questions to ask yourself as you navigate the selling process, and one of the most important is the value of your practice. Without a clear understanding of the profitability of your practice, expressed as your Earnings Before Interest, Taxes, Depreciation, and Amortization, you’re running the risk of undervaluing your practice and leaving money on the table. 

Reach out to Triumphant Partners today for a courtesy consultation to assess the profitability of your practice. Working with Triumphant Partners also gives you access to our exclusive private buyers’ network, giving you more qualified buyers to select from. Call Triumphant Partners today!