Guide to Selling a Plastic Surgery Practice in Kentucky

The market for plastic surgery practices is more active than ever, creating significant opportunities for owners in Kentucky. However, realizing your practice’s full value requires careful preparation and an understanding of today’s buyers and state-specific regulations. This guide provides a clear overview of the market, the sale process, and the key factors that will define your success.

Market Overview

For plastic surgery practice owners in Kentucky, the timing for considering a sale is strong. The market is not just stable; it is expanding, driven by powerful national trends that directly benefit local practices. Understanding this landscape is the first step toward a successful transition.

A Strong National Tide

Nationally, the demand for plastic surgery continues to climb, with a reported 5% increase in surgical procedures and a 7% jump in minimally-invasive treatments last year alone. This upward trend creates a favorable environment for sellers, signaling robust buyer confidence and a healthy appetite for well-run practices like yours.

Evolving Patient Demands in the Bluegrass State

Patient preferences are also shifting. There is a clear move toward less invasive options, and new opportunities are emerging. For example, the increasing use of weight loss medications is expected to drive future demand for body contouring procedures like tummy tucks and facelifts. Practices that can meet these evolving needs are positioned for premium valuations.

Key Considerations for Kentucky Sellers

While market trends are positive, selling a practice in Kentucky involves navigating a unique regulatory landscape. Two factors, in particular, require careful attention. First, Kentuckys Corporate Practice of Medicine (CPOM) doctrine has specific rules about who can own a medical practice, which directly impacts how a deal must be structured. Second, as of 2023, a state sales tax now applies to cosmetic surgery services. This change affects your practice’s financial statements and how potential buyers will analyze your revenue streams. Overlooking these state-specific details can create significant roadblocks late in the process. Proper planning is not just advisable; it’s necessary.

Market Activity and Private Equity Interest

The single biggest force shaping the M&A market for plastic surgery is the massive influx of capital from private equity (PE) firms. Between 2000 and 2023, PE investment in the specialty skyrocketed by over 7,000%. These are not local physicians looking to buy a job; they are sophisticated investors looking to partner with and grow the best practices.

What This Wave of Investment Means for You:

1. Access to a New Class of Buyers. You are no longer limited to selling to an associate or competitor. PE firms and their platform companies are actively looking for great practices in markets like Kentucky.
2. Potential for Higher Valuations. This increased competition and the strategic value PE places on well-run practices often lead to higher valuation multiples than in traditional sales.
3. A More Demanding Process. PE buyers conduct rigorous due diligence. They analyze financials, operations, and growth potential with a level of scrutiny that requires professional preparation to navigate successfully.

Understanding the Sale Process

Selling your practice is a structured journey, not a single event. It begins long before the practice is ever listed. The first phase is Preparation, where you and your advisory team organize your financials and address any operational or legal issues to present the practice in the best possible light. This is followed by confidential Marketing to a curated list of qualified buyers. Once interest is established, you move into Negotiation to agree on the core terms of a deal. The final critical stage is Due Diligence, where the buyer verifies all the information about your practice. This is where many deals fall apart due to surprises. A sale managed with foresight and expertise anticipates these stages, ensuring a smooth path to a successful closing.

How Your Practice Will Be Valued

One of the first questions any owner asks is,
What is my practice worth?
The answer is more than just a number; its a story told through your financials. Sophisticated buyers value your practice based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practices true cash flow by normalizing for owner-specific expenses or one-time costs. That Adjusted EBITDA figure is then multiplied by a number (a “multiple”) to determine the enterprise value. While multiples for strong practices can range from 5.5x to over 7.5x, the final number depends on several factors.

An expert valuation uncovers your true Adjusted EBITDA and frames your practice’s story to achieve the highest possible multiple.

Planning for Life After the Sale

The best practice sale achieves more than just a high price. It sets you up for the future you want. What does that future look like? Do you want to continue practicing clinically? Do you want to ensure your loyal staff have a secure future? These questions are answered in the deal structure. A transaction does not have to be an all-cash, walk-away event. Many owners today are choosing strategic partnerships that include equity rollover, where you retain a stake in the larger, growing entity. This allows you to benefit from future growth and a “second bite of the apple” when the new entity is sold years later. Planning your post-sale life is as important as planning the sale itself.