How To Sell Your Med Spa
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 Transition 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 Transition 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 Transition Partners enters the picture!
Call Triumphant Transition 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 Transition 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 Transition Partners today for a courtesy consultation and to discuss how we can help you sell your med spa!