Selling a Medspa to an MSO - Triumphant Partners

Selling a Medspa to an MSO

Selling your medspa to a Management Services Organization (MSO) can be a strategic move to secure financial stability and ensure your business thrives under professional management. At Triumphant Partners (triumphanttransitionpartners.com), we specialize in guiding medspa owners through this complex process, leveraging our combined expertise in over $1 billion in total enterprise value in successful healthcare practice transactions for our clients. Having an experienced advisor is essential to navigate the complexities of negotiations, valuation, and deal structuring when selling your med spa. Our team helps you maximize your medspa’s value while partnering with an MSO that aligns with your vision for patient care and growth. This comprehensive guide explores why MSOs are acquiring medspas, the benefits of selling, key considerations, and the step-by-step process to achieve a successful sale. Selling a med spa requires careful planning, expert support, and attention to detail. A comprehensive strategy and expert guidance are necessary to guarantee success in the sales process.

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Introduction to Medical Aesthetics

The medical aesthetics industry is experiencing unprecedented growth, with the global market expected to reach $45 billion by 2030. This surge is fueled by increasing demand for non-surgical cosmetic treatments, such as injectables, laser therapies, and skin rejuvenation procedures. As a result, medical spas—commonly known as med spas—are proliferating across the country, offering a wide array of services that blend medical expertise with spa-like experiences.

For med spa owners, this boom presents significant opportunities to expand their medical aesthetics practices and capture a larger share of the market. However, the path to success is not without its challenges. Navigating the complex regulatory environment, particularly the corporate practice of medicine (CPOM) laws, is essential for both physicians and non-physicians looking to establish or grow a med spa. A management services organization (MSO) can provide a compliant and efficient structure, allowing non-physicians to participate in the industry while ensuring that all operations adhere to state regulations. By leveraging the MSO model, med spa owners can focus on delivering exceptional patient care and growing their business within the bounds of the law.

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Understanding the Corporate Practice of Medicine

The Corporate Practice of Medicine (CPOM) doctrine is a legal framework that restricts the ownership and control of medical practices to licensed physicians or physician-owned entities in certain states. This legal doctrine is designed to ensure that medical decisions remain in the hands of qualified professionals, safeguarding the quality of patient care and upholding ethical standards in medical services.

For non-physicians interested in investing in or owning a medical spa, the CPOM can present a significant barrier. However, there is a compliant pathway: forming a management services organization (MSO) that enters into a management services agreement (MSA) with a physician-owned medical spa. Under this arrangement, the MSO provides essential non-medical services—such as front-desk operations, appointment scheduling, marketing, accounting, and office management—while the physician-owned entity retains full control over all clinical decisions and patient care. This structure allows non-physician investors to participate in the rapidly growing medical aesthetics industry without violating the corporate practice of medicine, ensuring that medical practices remain compliant and focused on delivering high-quality care.

Why MSOs Are Acquiring Medspas

Management Services Organizations (MSOs) are entities that provide non-clinical administrative services to healthcare practices, including medspas, enabling compliance with state regulations, particularly in states with corporate practice of medicine (CPOM) laws. MSOs are increasingly acquiring medspas due to the booming medical aesthetics industry, valued at approximately $30 billion in the U.S. in 2025, with a projected growth rate of 10% annually through 2030. The demand for non-invasive treatments like Botox, dermal fillers, laser therapies, and emerging services like weight loss programs drives this interest. Many practice owners are selling to MSOs to capitalize on this growth and to benefit from operational efficiencies.

MSOs target medspas for several reasons:

  • Regulatory Compliance: In states like California, Texas, and New York, CPOM laws restrict non-physicians from owning medical practices. MSOs allow non-physician investors, such as private equity firms or entrepreneurs, to manage medspas by handling administrative tasks like billing, marketing, and staffing while physicians retain clinical control.
  • Scalable Operations: MSOs consolidate multiple medspas to create regional or national networks, streamlining operations and reducing costs. For example, an MSO might acquire five medspas for $25 million to build a platform with shared resources. The buyer landscape includes private equity-backed MSOs, strategic operators, and entrepreneurs, each bringing different priorities and strategies to the table.
  • Stable Cash Flow: Medspas generate predictable revenue through memberships, pre-paid packages, and recurring treatments, making them attractive to MSOs backed by investors seeking steady returns.
  • Market Expansion: MSOs integrate advanced technologies, such as AI-driven skin diagnostics or automated booking systems, and expand services like IV therapy, enhancing profitability and market reach. Private equity groups play a significant role in driving these acquisitions, seeking scalable platforms and strong returns.

Recent examples include MSOs like Advanced MedAesthetic Partners, which acquired multiple medspas to form a network of 15 locations since 2023, and MedSpa Partners, which expanded into new markets with $50 million in backing. Triumphant Partners connects you with MSOs seeking high-performing medspas, ensuring a strategic match. A private equity-backed group is also a common type of MSO or buyer actively acquiring medspas in the current market.

Benefits of Selling to an MSO for Med Spa Owners

Selling your medspa to an MSO offers distinct advantages, especially with the guidance of Triumphant  Partners:

  • Competitive Valuations: MSOs often pay 100%–250% of annual revenue or 5–8x adjusted EBITDA, depending on your medspa’s financials and market position. Our team secures multiple offers to maximize your return, create a true bidding process, and never allow a buyer to name the price directly, as demonstrated by past deals achieving up to 300%+ of collections and double-digit multiples when warranted. It’s important to carefully evaluate medical spa offers, considering not just the price but also the quality, terms, and structure of each offer to ensure the best outcome.
  • Operational Efficiency: MSOs provide robust administrative support, including billing, payroll, and compliance management, freeing you to focus on patient care or transition to a new phase of your career.
  • Growth Opportunities: MSOs invest in expanding  and scaling your medspa, such as adding locations or services like regenerative medicine, wellness, human capital and capital thereby increasing its value for future sales. On average,  medspas can give up to 30% ‘lifts’ in year one resulting in a 30% boost in revenue. 
  • Flexible Roles: Most MSOs prefer owners to retain clinical or advisory roles post-sale, often for 2-5 years, ensuring continuity for patients and staff while providing you with income. The structure of the deal can significantly impact your financial future, so it’s crucial to consider how options like equity rollovers, growth bonuses, or earnouts may affect your long-term financial security.
  • Regulatory Expertise: MSOs navigate complex state regulations, ensuring compliance with CPOM laws and licensing requirements, reducing your legal and administrative burden.
  • Skilled Negotiation: Our experts negotiate not only for the highest price but also for favorable deal terms, such as payment structure, contingencies, and risk and value allocations, to ensure you achieve the best possible result. We run a complete auction process with your interests only, while buyers represent their interests only.

Types of MSO and Private Equity Firm Acquisitions for Medspas

MSOs pursue varied acquisition models when buying medspas:

  • Full Acquisition: The MSO purchases 100% of your medspa’s non-clinical assets, managing operations while you or a designated physician handles clinical decisions. The clinical side remains under the supervision of licensed professionals within the medical facility, ensuring compliance with healthcare regulations. These suit owners that are seeking a complete exit and typically looking at 5 years or less in a post-transition role. 
  • Partial Acquisition: Some MSOs acquire a majority stake or a JV model (Joint Venture) (e.g., 51-80%), allowing you to retain equity at your practice level and benefit from future growth with distributions. This is ideal for owners who want to stay involved and are committed to 5+ years or more post-sale.
  • Platform Development: MSOs acquire a very large or multiple med spas to form a larger network, integrating them under a unified brand or management structure. The MSO acts as a management company, overseeing non-medical business functions such as staffing, billing, and marketing across the network. For example, an MSO might buy three med spas for $18 million to create a regional hub. This is going to be based off the EBITDA of the business(es).
  • Specialty MSOs: Some MSOs focus on niche services, such as cosmetic injectables or wellness therapies, aligning with med spas offering specialized treatments.

Triumphant Partners evaluates your medspa’s profile and your goals to match you with the right MSO model, whether you aim to retire, scale, or maintain a clinical role. Be aware that some buyers may approach with pre-set structures meant to favor their interests, so understanding these frameworks is crucial during negotiations.
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Key Features of a Successful Medspa Sale and Med Spa Valuation Process

A successful sale to an MSO requires meticulous preparation, with the ultimate goal being a successful practice sale that maximizes value and ensures a smooth transition. Triumphant Partners offers:

  • Detailed Valuation: We assess your medspa’s revenue, EBITDA, client retention, brand, market footprint, staff tenure,  and growth potential to set a competitive price. A medspa with $2 million in revenue might fetch $2.5–$5 million based on market trends. Our patented and experience-driven valuation process ensures that every aspect valued by buyers is considered, providing a data-backed, market-aligned approach.
  • Confidential Marketing: We protect your business’s sensitive information while marketing to pre-vetted MSOs, ensuring a discreet process that minimizes disruptions. Our targeted marketing is focused on attracting qualified buyers who are aligned with your goals. We run a complete, 100% confidential process with strict NDAs in place. 
  • Skilled Negotiation: Our team, with a track record of securing over, negotiates favorable terms, such as full autonomy and higher valuations. Managing the negotiation process strategically is essential to maximizing value and securing the best possible terms. Expert representation by our experienced advisors ensures you are protected and positioned for optimal outcomes. By creating competitive tension among interested parties, we foster competitive tension that encourages buyers to present their best offers, improving deal outcomes.
  • Due Diligence Support: We manage complex documentation, including financial records, compliance reports, and MSO agreements, ensuring a smooth process that meets regulatory standards.
  • Customized Transition Plans: Whether you plan to exit in 122 months or stay for a decade, we structure deals to align with your personal and professional objectives.

To maximize your sale, it’s critical to consider the entire value of your medspa, including operations, market positioning, and buyer demand—not just financial metrics.

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How to Qualify for an MSO Sale

MSOs seek medspas with strong fundamentals, branding, and culture. A successful sale of a med spa requires comprehensive preparation, financial transparency, regulatory compliance, and operational readiness to attract buyers and secure favorable deal terms. To qualify, your med spa should demonstrate:

  • Robust Revenue: Annual revenues of at least $1.5 million,  with stable cash flow from memberships, injectables, or laser treatments, are typically required. Consistent revenue trends are crucial, as buyers look for predictable financial performance and growth potential.
  • Growth Potential: Scalability, such as the ability to add services like microneedling or expand to new locations, makes your medspa more attractive.
  • Strong Brand: A loyal client base, high online ratings (e.g., 4.5+ stars on Yelp), and a professional website signal market strength. Having a loyal clientele increases the perceived value and stability of your practice.
  • Regulatory Compliance: Adherence to state CPOM laws, proper licensing, and clear delineation of clinical vs. non-clinical operations are critical, especially in states like Florida or Illinois. Employing qualified medical professionals ensures compliance and high standards of patient care.
  • Efficient Operations: Well-documented processes, trained staff, and modern equipment, such as FDA-approved laser systems, enhance appeal. Buyers want to see that you can replace operational know-how so the business can run smoothly without the owner’s daily involvement.

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Many owners underestimate the true value of their med spa by relying solely on net income or using generic online calculators, which often fail to capture the full perceived value of the business. Owners rely on outdated valuation methods or superficial assessments, but sophisticated buyers look for financial discipline, robust revenue trends, and adherence to med spa best practices. Understanding how your specific mix of services, client demographics, and operational structure impacts market appeal is essential. A med spa that treats patients with a team of qualified medical professionals and maintains proper medical malpractice insurance is more attractive to buyers. Without these elements, the business may be seen as a risky investment. Demonstrating operational independence and the ability to replace operational know-how, along with a loyal clientele, increases perceived value and reduces buyer concerns. Triumphant Partners conducts a thorough assessment to ensure your medspa meets these criteria, identifying areas to strengthen before approaching MSOs.

Due Diligence in the Medspa Sale Process

Due diligence is a pivotal phase in the sale of any med spa, serving as the foundation for a successful and transparent transaction. During the due diligence process, potential buyers conduct a comprehensive review of the med spa’s financial health, operational efficiency, and regulatory compliance. For med spa owners, this means preparing a complete set of documents, including up-to-date financial statements, contracts, licenses, and compliance records.

A thorough diligence process allows buyers to assess the true value of the med spa and identify any potential risks or liabilities. It is essential for med spa owners to be organized, transparent, and responsive during this stage, as openness builds trust and can expedite the transaction. Engaging experienced advisors— who specialize in medical spa transitions—can help owners navigate the complexities of due diligence, address any issues proactively, and ensure that all aspects of the business are in order. Proper preparation and cooperation during due diligence not only facilitate a smoother sale but also help maximize the value of the med spa to qualified buyers.

Management Fees and Structuring the Sale

Management fees are a cornerstone to most MSO models, representing the payments made by the medical spa to the MSO for a suite of non-medical services, including accounting, marketing, human resources, and facility management. The structure and amount of the management fee must be carefully designed to comply with state laws and regulations, particularly those related to the corporate practice of medicine.

When preparing to sell a medical spa, it is crucial to ensure that management fees are clearly defined, reasonable, and fully documented. A well-structured management fee arrangement not only supports the ongoing profitability of the medical spa but also enhances its attractiveness to potential buyers by providing transparency around operational costs. During the sale process, both parties should consider the impact of management fees on the business’s financial performance and ensure that the sale is structured in a way that is both tax-efficient and compliant with all regulatory requirements. Properly addressing management fees can help avoid legal pitfalls and create a solid foundation for a successful transaction.

The Role of the Medical Director in a Medical Aesthetics Practice

The Medical Director is a vital figure in any medical aesthetics practice, serving as the clinical leader responsible for overseeing all medical aspects of the business. This role is typically filled by a licensed physician with specialized experience in medical aesthetics, ensuring that patient care, medical procedures, and regulatory compliance are held to the highest standards.

A Medical Director’s responsibilities extend beyond direct patient care—they are tasked with developing and implementing clinical policies and procedures, hiring and training clinical staff, and ensuring ongoing compliance with regulations such as OSHA, HIPAA, and state medical board requirements. The Medical Director also plays a key role in maintaining the reputation and integrity of the medical spa, which can significantly enhance its value and appeal to potential buyers. By working closely with the MSO, the Medical Director helps ensure that the practice operates efficiently and effectively, balancing business growth with a steadfast commitment to patient safety and quality care. A strong Medical Director is not only a regulatory necessity but also a strategic asset in building a successful and sustainable medical aesthetics practice.

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Steps to Sell Your Medspa to an MSO

Triumphant Partners streamlines the sale process to maximize value and efficiency by guiding you through a structured deal process designed to ensure a smooth and successful transaction:

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Initial Consultation:

Contact us at info@triumphanttransition.com or (512) 924-8808 to discuss your goals, timeline, and vision. We create a personalized strategy, whether you seek a full exit or a partnership.

FAQs About Selling a Medspa to an MSO

How long does the sale process take?

With Triumphant Partners, the process typically takes 60–90 days from LOI to closing, depending on your medspa’s readiness and MSO requirements.

Can I sell and stay involved?

Many MSOs encourage owners to stay for 5+ years in clinical or advisory roles. We tailor deals to your preferences.

How should I market my medspa to potential buyers?

Targeted marketing is crucial for attracting serious, qualified buyers. Broad, untargeted marketing can attract unqualified interest, which may complicate the sales process and waste valuable time.

Will I retain clinical control?

MSOs manage non-clinical operations, leaving clinical decisions to physicians or owners. We negotiate terms to ensure your desired level of involvement and full autonomy.

How much is my medspa worth?

Valuations typically range from 100%–300% of annual revenue or 5–10x+ EBITDA. Our team provides a precise valuation based on your financials.

What is the difference between financial buyers and strategic buyers when selling a medspa?

Financial buyers, such as private equity firms or investors, are primarily interested in the return on investment and may focus on financial performance and growth potential. Strategic buyers, on the other hand, acquire medspas to expand their market share and establish a long-term presence in the industry, often considering how your practice fits into their broader business strategy. Understanding these differences can help you align your sales strategy with the right type of buyer.

What happens to my staff?

MSOs prioritize team retention to maintain patient satisfaction. We match you with buyers who value your staff and culture.

Why choose an MSO over other buyers?

MSOs offer regulatory expertise and operational support, ideal for owners in CPOM states or those seeking administrative relief.What is the difference between financial buyers and strategic buyers when selling a medspa? Financial buyers, such as private equity firms or investors, are primarily interested in the return on investment and may focus on financial performance and growth potential. Strategic buyers, on the other hand, acquire medspas to expand their market share and establish a long-term presence in the industry, often considering how your practice fits into their broader business strategy. Understanding these differences can help you align your sales strategy with the right type of buyer.

Why Choose Triumphant Transition Partners

Triumphant Partners is your trusted advisor for selling your medspa to an MSO. With extensive experience in guiding the sale of a med spa practice, our relational approach, backed by over $1 billion in healthcare total enterprise value transactions, ensures your goals drive the process. Our team handles every detail, from valuation to closing, allowing you to focus on your patients. Every med spa deserves a fair value and a strategic sale process that recognizes its true worth, that represents your best interests..

Join the Triumphant Transition Today

Selling your medspa to an MSO is a pivotal decision that requires expert guidance to maximize value and ensure a smooth transition. Remember, selling a medspa is not a shortcut—it demands a thorough, strategic process to protect your interests and achieve the best outcome. Triumphant Partners is here to guide you, connecting you with the right MSO to achieve your financial and professional goals. Ready to start? Contact us at info@triumphanttransition.com or  (512) 924-8808.or Vvisit triumphanttransitionpartners.com for a complimentary consultation. Let us help you secure your medspa’s future with confidence.

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