The market for selling a plastic surgery practice in Fort Lauderdale is uniquely strong. Fueled by high consumer demand and significant investor interest, valuations are reaching premium levels. However, navigating a sale to capitalize on this peak requires careful planning and a deep understanding of the market. This guide provides the insights you need to prepare for a successful and profitable practice transition.
Market Overview: A Seller’s Market in South Florida
If you own a plastic surgery practice in Fort Lauderdale, you are in one of the nation’s hottest markets. Your proximity to Miami, the plastic surgery capital of the U.S., creates a powerful backdrop for a potential sale. Today’s market is defined by several key trends that create significant opportunities for practice owners.
- Surging Investor Interest. Private equity firms have invested over $3.1 billion into aesthetics in the last five years. These groups are actively seeking established practices in prime locations like Fort Lauderdale and are often willing to pay a premium.
- Attractive Business Model. Your cash-pay revenue stream is highly attractive to buyers. It reduces the headaches of insurance reimbursement and creates predictable, healthy cash flow.
- Expanding Patient Base. Demand is no longer limited to one demographic. Younger generations are seeking preventative treatments, and more men are pursuing cosmetic procedures, creating a broad and sustainable patient pipeline.
Key Considerations for Florida Practice Owners
Beyond the market dynamics, selling a practice in Florida involves specific operational and legal duties. You are required by state law to notify patients of the sale, typically through a newspaper announcement, and ensure medical records are properly maintained and transferable for up to five years. These are not just boxes to check. They are critical steps to protect your legacy and ensure a clean transition. More importantly, you must decide what you want from a buyer. The highest financial offer might come from a private equity group that requires a 3-5 year commitment from you post-sale. A different buyer might offer more autonomy. Defining your personal and professional goals is the first step in finding the right partner.
Market Activity: Who is Buying and Why?
The aesthetics market is not just growing. It is consolidating. The number of acquisitions in the space increased from 54 in 2021 to 77 in 2023, a clear sign that buyers are active. Understanding who these buyers are is key to positioning your practice.
The Rise of Private Equity
Private equity (PE) firms are the most aggressive acquirers in the market today. They see the long-term growth and high cash-pay margins in aesthetics and are building large platform companies. Selling to a PE-backed group often yields the highest valuation, but it comes with expectations. You will likely be asked to stay on for 3-5 years to help with the transition and growth, and you may roll some of your sale proceeds into the new company as equity.
Strategic and Individual Buyers
While PE dominates headlines, other buyers are also in the market. These include large, multi-specialty groups looking to add a profitable service line, other plastic surgeons seeking to expand their footprint, or even overseas investors. These buyers may have different goals, sometimes offering more flexibility or a different cultural fit than a PE firm. A structured sale process creates competition among all buyer types to ensure you get the best deal for your specific goals.
The Sale Process: From Preparation to Closing
Many physicians think selling a practice starts with finding a buyer. In reality, a successful sale begins months or even years earlier with careful preparation. The process involves getting your financial records in order, creating a compelling story about your practice’s growth, and confidentially approaching a curated list of potential buyers. After initial offers are received, the most critical phase begins: due diligence. This is where the buyer inspects every aspect of your business, from patient records to employment contracts. Many deals fail at this stage due to poor preparation. A well-managed process anticipates buyer questions and ensures a smooth path to closing, protecting your value and momentum.
What is Your Fort Lauderdale Practice Really Worth?
One of the biggest mistakes practice owners make is guessing their value based on revenue. Sophisticated buyers, especially private equity, value your practice based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true cash flow by adding back owner-specific or one-time expenses to your net income. This Adjusted EBITDA is then multiplied by a number (the multiple) to determine your practice’s enterprise value. While practices with over $1M in EBITDA can see multiples of 5.5x to 7.5x or more, the exact multiple depends on several factors.
| Valuation Factor | Why It Matters to a Buyer |
|---|---|
| Provider Reliance | Practices not dependent on a single owner-surgeon are less risky and command higher values. |
| Service Mix | A healthy blend of surgical and recurring non-surgical revenue shows a stable, loyal patient base. |
| Growth Profile | Demonstrating consistent year-over-year growth proves the practice has future potential. |
| Location & Facility | A modern facility in a prime Fort Lauderdale location is a highly valuable asset. |
Planning for Life After the Sale
The final sale agreement is a beginning, not an end. Your transition plan is a critical part of the negotiation. Will you be required to stay on, and for how long? What will your role, compensation, and clinical autonomy look like? These terms, along with the scope of any non-compete agreement, will define your life for years after the sale. A well-structured deal also protects what you have built. It ensures your staff is treated fairly and your legacy of patient care continues under the new ownership. Planning for this future is just as important as negotiating the price.
Frequently Asked Questions
What makes Fort Lauderdale a strong market for selling a plastic surgery practice in 2024?
Fort Lauderdale benefits from high consumer demand and significant investor interest, especially due to its proximity to Miami, the plastic surgery capital of the U.S. The aesthetics market here is growing and consolidating, with private equity firms actively seeking established practices. This creates attractive valuation opportunities for sellers.
What are the key legal and operational considerations when selling a plastic surgery practice in Florida?
Florida law requires practice owners to notify patients about the sale, typically via a newspaper announcement, and maintain medical records for up to five years with proper transferability. These steps help protect the practice’s legacy and ensure a smooth transition for patients and the new owners.
Who are the typical buyers in the Fort Lauderdale plastic surgery market, and what are their expectations?
Buyers include private equity firms, large multi-specialty groups, other plastic surgeons, and overseas investors. Private equity buyers often offer premium valuations but may require sellers to stay on for 3-5 years and roll part of their proceeds into equity. Other buyers might offer more flexibility and different cultural fits.
How is the value of a plastic surgery practice determined in Fort Lauderdale?
The value is mostly determined using Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which adjusts net income to reflect true cash flow. Multiples of 5.5x to 7.5x or more can be applied depending on factors like provider reliance, service mix, growth profile, and the location and condition of the facility.
What should a seller plan for after completing the sale of their Fort Lauderdale plastic surgery practice?
Sellers should plan their transition carefully, including any required commitment to stay on, their role, compensation, clinical autonomy, and non-compete terms. The deal should also ensure staff are treated fairly and the quality of patient care continues under new ownership, preserving the seller’s legacy.