Selling your plastic surgery practice is one of the most significant financial decisions of your career. In a booming market like Salt Lake City, understanding your options is the first step toward securing the value you have worked so hard to build. This guide provides a clear overview of the current market, how to prepare your practice for a sale, and what you can expect from the process.
Salt Lake City Market Overview
The Salt Lake City area presents a unique and compelling market for plastic surgery. Utah consistently ranks high in the nation for cosmetic procedures per capita, and this trend shows no signs of slowing down. The global cosmetic surgery market is projected to grow significantly by 2033, and Salt Lake City is well-positioned to capture that growth.
A Growing, Health-Conscious Population
Your practice is located in a region known for its affluent and health-conscious residents. This demographic actively invests in self-improvement and wellness, creating a stable and growing customer base for aesthetic services. This is a key selling point that sophisticated buyers understand and value.
Rising Demand Across the Board
Demand is not limited to one type of procedure. We see strong interest in both traditional surgical services and the rapidly expanding non-invasive and med-spa treatments. Practices that offer a diverse menu of services are attracting significant attention from potential buyers right now.
Key Considerations Before You Sell
A strong market is a great starting point, but a successful sale depends on the specific strengths of your practice. Buyers look past the surface and analyze the details. They are interested in your established patient database, your community reputation, and the operational efficiency youve built. Practices with diversified revenue streams, particularly those with an integrated med spa, are commanding premium attention. It is also important to highlight clear opportunities for growth, whether it’s expanding services for a growing male clientele or capitalizing on popular procedures like ‘mommy makeovers’. A buyer isn’t just acquiring your past success. They are investing in future potential.
Current Market Activity & Valuations
The entire aesthetic services market is seeing a surge in M&A activity. Both private equity groups and larger strategic medical organizations are actively looking to acquire well-run practices in growth markets like Salt Lake City. This competition is driving strong valuations, often calculated as a multiple of your practice’s earnings. However, not all practices command the same multiple. We see that certain attributes can significantly increase the final value.
| Practice Attribute | Potential Impact on Valuation |
|---|---|
| Solo-Practitioner Reliant | Lower Multiple (3-5x) |
| Multiple Providers & Staff | Higher Multiple |
| No Revenue Diversification | Base Multiple |
| Strong Med Spa Revenue | Premium Multiple (5-6x+) |
| Aging Facility or Tech | Lower Multiple |
| Accredited Surgery Center | Premium Multiple |
The Typical Sale Process
Selling your practice is a structured process that goes far beyond simply finding a buyer. It begins with careful preparation, where you organize your financial and operational documents to present a clean, compelling story. The next phase is confidential marketing, where your practice is presented to a curated list of qualified buyers without alerting your staff or the public. After generating interest and managing initial offers, the most critical phase begins: due diligence. This is where a buyer inspects every detail of your practice. Many deals encounter problems here if the initial preparation was not thorough. A well-managed process anticipates buyer questions and ensures a smooth journey to a successful closing.
How Your Practice is Valued
Your practices value is not based on your reported net income. Instead, buyers use a metric called Adjusted EBITDA. Think of this as your true cash flow. It starts with your profit and then adds back personal expenses run through the business, any above-market owner salary, and other one-time costs. This adjusted number gives a clear picture of the practice’s profitability. A valuation multiple, like the ones discussed earlier, is then applied to this figure. Getting this calculation right is the foundation of a successful sale.
3 Factors That Drive Your Valuation Higher
1. A Clear Growth Story. Can a new owner easily add providers or services?
2. Low Owner Reliance. Is the practice successful because of its systems, not just a single person?
3. Clean Financials. Are your books organized and ready for professional scrutiny?
Planning for Life After the Sale
A successful transition is about more than the final price. Its also about how the deal is structured to meet your personal and financial goals. Do you want to continue practicing for a few years or transition out quickly? How the sale is structured has major implications for your after-tax proceeds. The best agreements also protect your legacy and your team. For many owners, this involves negotiating a partnership where they roll a portion of their equity into the new, larger company. This provides cash upfront while allowing you to share in the future success of the organization you helped build. Planning for these outcomes before you go to market is critical.
Frequently Asked Questions
What makes Salt Lake City a good market to sell a plastic surgery practice?
Salt Lake City has a growing, health-conscious, and affluent population that actively invests in cosmetic procedures. Utah ranks high nationally for cosmetic procedures per capita, and the local market is positioned for growth, driven by demand for both surgical and non-invasive aesthetic services.
What practice attributes can increase the valuation when selling?
Practices that have multiple providers and staff, diversified revenue streams especially with a strong med spa component, and accredited surgery centers tend to command premium valuation multiples. Conversely, solo-practitioner reliant practices or those with aging facilities typically have lower multiples.
What is the typical process of selling a plastic surgery practice in Salt Lake City?
The process starts with careful preparation of financial and operational documents, followed by confidential marketing to qualified buyers. After generating interest, due diligence is conducted where buyers inspect every detail. A thorough preparation ensures smooth progression to closing.
How is the value of a plastic surgery practice determined?
Value is determined based on Adjusted EBITDA, which represents true cash flow after adjusting for personal expenses, owner’s salary, and one-time costs. A valuation multiple (e.g., 3-6x) is then applied to this figure, considering factors like growth potential and operational independence.
What should a seller consider about life after selling their practice?
Sellers should plan how the sale structure aligns with their personal and financial goals, whether they want to transition out quickly or gradually. Considerations include tax implications, protecting legacy and team, and opportunities like rolling equity into the new company to share in future success.
