Selling an Aesthetics Practice or Med Spa to an MSO - Triumphant Partners

Selling an Aesthetics Practice or Med Spa to an MSO

Selling your aesthetic practice to a Management Service Organization (MSO) offers an opportunity to capitalize on a thriving market while reducing operational demands. One key benefit of selling to an MSO is the increased scalability, improved efficiency, and wealth-building opportunities, as well as derisking, exit planning, and legal solutions for ownership restrictions, which can create significant value and facilitate business growth. MSOs work with various types of businesses in the medical aesthetics space, including practices structured as separate management and clinical entities. Triumphant Partners, an advisory firm with over 100 + years of combined experience and over $1 billion in Total Enterprise Value (TEV) deal transactions, is dedicated to serving your interests—maximizing value, ensuring a smooth transition, and preserving your brand. This guide provides a comprehensive overview for sellers navigating an MSO sale.

Introduction to the
Med Spa Industry

The medical spa industry is experiencing unprecedented growth, driven by increasing demand for medical aesthetics and wellness services. This surge has prompted many practice owners to explore new ways to enhance their med spa business and secure long-term sustainability. One increasingly popular option is partnering with a Management Support Organization (MSO). Right now, the MedSpa space is very fragmented with only 3% of MedSpa owners currently partnered with an MSO which allows it to be a seller’s market and dictate the terms.

MSOs offer valuable operational support, financial backing, and strategic guidance, enabling med spas to improve efficiency, reduce overhead costs, and expand their range of services. By understanding the unique benefits that MSOs bring to the table, practice owners can make informed decisions that position their business for continued growth and future success in the competitive med spa industry.

What Are MSOs and Why Sell to One?

MSOs manage non-clinical operations, such as marketing and staffing, as well as other non-medical functions for aesthetic practices, enabling owners to focus on patient care and innovation.

In some states, MSOs offer more flexibility for non-physicians to participate in the ownership or management of aesthetic practices, helping them navigate regulatory requirements. And some states are pushing to have a physician/doctor or Nurse Practitioner attached as an owner, so it is important to know your state’s legislation, what bills are being passed, ensuring you are not missing the opportunity.

Selling to an MSO is attractive for financial gains, market expansion, and reduced administrative burdens, particularly as the aesthetics industry experiences growing interest from MSOs. Triumphant Partners helps you determine if this aligns with your goals, connecting you with MSOs that value your practice’s unique offerings, culture, and brand.

Benefits of Partnering with a Medical Support Organization

For med spa owners, partnering with a Medical Support Organization can unlock a host of advantages that drive both immediate and long-term business success. MSOs are experts in streamlining business operations, marketing, and financial management, which translates to improved operational efficiency and increased financial security for your practice. With an MSO handling the business side, practice owners can devote more time to patient care and clinical decisions, enhancing the quality of their services.

MSOs also help med spas navigate the complexities of federal regulations and corporate practice laws, ensuring full regulatory compliance and reducing risk. By alleviating the administrative burden and optimizing day-to-day operations, MSOs help practice owners achieve a better work-life balance. Additionally, the involvement of private equity firms and institutional investors in the med spa industry is on the rise, and an MSO partnership can make your practice more appealing to potential buyers, increasing its equity and market value.

Evaluating Partnership Options

When considering a partnership with an MSO, practice owners should take a strategic approach to ensure the best fit for their med spa.

Start by evaluating the MSO’s experience and expertise within the med spa industry, as well as their track record in supporting practices to achieve long-term growth and financial success. Carefully review the proposed deal structure and terms, making sure they align with your goals for clinical autonomy, reduced stress, and a successful sale or transition.

Assess the MSO’s reputation, request references, and look for evidence of their ability to provide robust operational support and resources. By prioritizing your own objectives—whether maximizing your practice’s value, ensuring a smooth transition, or maintaining control over clinical decisions—you can select an MSO partner that supports your vision and helps your practice thrive in a competitive market.

How Much Will an MSO
Pay for My Practice?

An offer from an MSO will depend on revenue, client retention, market, type of membership plans, total # of injectors, and profitability, as well as sustainable cash flow and risk profile, based on an EBITDA multiple. Practices with strong cash flow, diversified provider bases, tenured teams, strong branding, and scalable infrastructure tend to command higher valuations.

Triumphant Partners performs a comprehensive valuation, assessing financials and market trends, and negotiates to secure the highest offer, reflecting your practice’s reputation and client base. Private equity groups are often the buyers in these transactions and are particularly interested in practices with robust cash flow and growth potential. Understanding and mitigating operational and regulatory risks can increase your practice’s value and make it more attractive to buyers.

How Can I Sell My Aesthetics Practice to an MSO?

The sale process with Triumphant Partners begins with evaluating your practice’s value, emphasizing assets like advanced equipment or a loyal clientele. Developing a clear exit strategy is essential for maximizing value and ensuring a smooth transition. We then match you with suitable MSOs, following our thorough vetting process, and advocate for favorable terms during negotiations. We also manage due diligence and closing, often within 60-90 days from the date of a signed LOI. MSOs frequently seek practices with a proven track record of growth, so preparing your practice to grow can enhance its attractiveness. Our seller-only focus ensures your preferences shape the timeline and outcome. Many practice owners find that partnering with an MSO as part of their exit strategy leads to increased profitability, enhanced operational support, a better quality of life, and financial freedom.

How Much Can I Sell My Aesthetics Practice For?

Sale prices drastically range, depending on growth, specific metrics, and location. Triumphant Partners analyzes industry data, market trends, fed rates, our patented and industry-leading valuation software, and your practice’s specifics to estimate a range, negotiating and exceeding initial bids, and ensuring you understand the value drivers.

How Do I Estimate the Value 
of My Aesthetics Practice?

Valuation involves reviewing revenue, profit margins, client retention, equipment quality, and patient billing processes. Triumphant Partners employs income, market, and asset-based methods to value a medical aesthetics practice, analyzing financial statements and comparables from similar businesses in the medical aesthetic industry to provide a precise estimate. We also consider intangible assets, such as your brand, which gives you a strong negotiating position.

What Happens to Staff When an Aesthetics Practice Is Sold?

Staff outcomes vary—we ensure that MSOs retain their teams, while other advisory firms or direct negotiations lead to reorganization. Triumphant Partners negotiates to prioritize staff retention, preserving your practice’s culture. We work with MSOs to develop transition plans, reducing disruption and supporting your team, which helps maintain client trust during the change. Triumphant Partners only works with MSOs that enhance team culture, pay, benefits, and patient experience.

Preparing for the Sale:
What to Expect

Preparation includes organizing financials, upgrading equipment, optimizing operations, and expanding your menu to include new services. Triumphant Partners offers checklists and guidance to make your practice appealing to MSOs. Practices such as a plastic surgery practice or dermatology clinic can particularly benefit from MSO partnerships for operational support and growth. We also assist with post-sale planning, whether you’re retiring or exploring new opportunities, ensuring a thorough transition.

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Negotiating the Best Deal

Triumphant Partners fights for terms that maximize your payout, terms, equity, protects your brand, and addresses staff needs—pay, benefits, company equity, or transition support.

Negotiation is crucial for a favorable outcome. Compared to individual buyers, MSOs often offer more strategic and scalable acquisition options, providing greater operational support and long-term stability. Our MSO expertise ensures that we provide competitive offers tailored to your specific goals.

Final Thoughts

Partnering with a Management Support Organization (MSO) is a strategic move for med spa owners who want to enhance their business, achieve long-term sustainability, and maximize their practice’s value.

With operational support, financial backing, and expert guidance, MSOs empower med spas to enhance efficiency, minimize overhead costs, and increase revenue. As the med spa industry continues to evolve, practice owners who align with the right MSO can position themselves for future success—whether that means selling their practice, transitioning to a new ownership structure, or simply enjoying a better work-life balance. By focusing on high-quality patient care and leveraging the strengths of an MSO partnership, med spa owners can maximize their business’s potential and secure a prosperous future. Contact Triumphant Partners today for your no-obligation courtesy discovery call.

Closing the Sale and Beyond

Ready to sell your aesthetics practice or MedSpa to an MSO? Contact Triumphant Partners for expert, seller-focused assistance.

Closing involves legal reviews, contract signing, patient credit clean-up, accounts receivable, leases, and coordination of the transition. Triumphant Transition Partners handles every detail for a seamless transition to the MSO. Maintaining strong relationships with patients during and after the transition is essential to ensure ongoing success and preserve the core value of your practice. Post-sale, we provide support for adjustments, such as phased exits, ensuring you’re prepared for what’s next.