Selling your plastic surgery practice is one of the biggest decisions of your professional life. It is more than a transaction. It is a transition of your life’s work. Right now, the market for plastic surgery practices in Chicago shows strong market demand, but turning that demand into a successful sale requires strategic planning. This guide walks you through the current market, key steps, and what you need to consider to protect your legacy and maximize your outcome.
Market Overview
The timing for considering a sale could not be better. The entire aesthetic industry is growing. The American Society of Plastic Surgeons noted a 5% increase in cosmetic procedures last year, and the global market is projected to grow 6% annually. This national energy has a unique focus here in Chicago.
National Trends Fueling Growth
A wider acceptance of elective surgery combined with increasing affordability has created a broad base of new patients across the country. This lifts the entire market, making established practices with a strong reputation more valuable than ever.
The Chicago-Specific Boom
Here in the Windy City, we are seeing a specific surge in demand for body contouring procedures for the abdomen, waist, and back. Innovations like using AI in consultations are also setting top practices apart. This local demand means buyers are actively looking for well-run Chicago practices to meet a clear and growing patient need.
Key Considerations
A strong market is a great start, but a successful sale depends on your practice’s specific strengths and your personal readiness. Before you take any serious steps, it is important to look at these areas. Thinking through them now is the first step toward selling on your terms, not a buyer’s.
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Your Personal Readiness. Is this the right time for you and your family? A sale impacts more than just your work life. Thinking about whether you would be happy working for someone else, or what you will do after the sale, is a critical first step.
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Your Practice’s Story. What makes your practice valuable? Buyers look beyond the numbers. They want to understand your patient acquisition model. Do you rely on physician referrals or paid advertising? A strong, loyal patient base is a major asset. One local practice, for example, built its valuation on a foundation of over 7,000 patients developed over 35 years.
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Your Financial Health. You must have a clear view of your finances. This includes not just revenue, but also escalating costs for supplies, services, and employee benefits. A clear, accurate financial picture is foundational to the entire process.
Market Activity
The interest in acquiring plastic surgery practices is high. This is not a theoretical opportunity. Both private equity (PE) firms and larger Physician Practice Management (PPM) groups are actively buying practices in the Chicago area. This level of activity creates a competitive environment that can drive up practice values.
These buyers bring different goals and structures to the table, which can significantly impact your role and financial outcome after the sale. For example, selling to a strategic buyer, like another large practice, is very different from partnering with a private equity group.
| Buyer Type | Typical Goal | Impact on Seller |
|---|---|---|
| Strategic Buyer | Expand geographic footprint or service lines. | Often involves full integration. Seller may stay on for a transition period. |
| Private Equity | Provide capital for growth, then sell the larger group later. | Seller often retains equity (a “rollover”) and continues to run the practice with new resources. |
| Hospital System | Secure referral streams and expand their plastic surgery service line. | Can offer stability but may involve more bureaucracy and less autonomy. |
Understanding this buyer landscape is key. A $2 million practice with $400,000 in adjusted profit might sell for $1.6 million or more in a competitive process, but the structure of that deal is just as important as the price.
The Sale Process
Many owners think selling a practice is like selling a house. You list it and wait for offers. A professional M&A process is much more proactive and structured to protect you and your practice’s value. While every deal is unique, the journey generally follows a clear path.
- Preparation and Valuation. This is the foundation. We work with you to understand your goals, analyze your financials, and determine a realistic valuation range. This is also where we prepare the narrative that tells the story of your practice’s success.
- Confidential Marketing. Your identity and the fact you are exploring a sale are kept confidential. We identify and approach a curated list of qualified buyers. This creates competitive tension without disrupting your staff or the local market.
- Negotiation and Offer Selection. We help you evaluate offers, looking beyond the headline price to the deal structure, your future role, and other key terms.
- Due Diligence and Closing. This is where many deals face challenges. Buyers conduct a deep dive into your financials, operations, and compliance. Proper preparation beforehand is the key to a smooth process. Our job is to manage this phase to get you to a successful closing.
How Your Practice is Valued
One of the first questions every owner asks is, “What is my practice worth?” The answer is more complex than a simple rule of thumb, like a percentage of revenue. Sophisticated buyers value your practice based on its profitability and future potential.
It Starts with Adjusted EBITDA
The key metric is Adjusted EBITDA. This stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. We start with your stated net income and then make adjustments. We add back personal expenses run through the business or a one-time equipment purchase. This gives us a true picture of the practice’s ongoing cash flow. Getting this number right is the most important step in the valuation process.
The Art of the Multiple
Once we have the Adjusted EBITDA, we apply a valuation multiple. This is where the art and market knowledge come in. The multiple is influenced by many factors.
* Scale: Practices with higher EBITDA get higher multiples.
* Provider Reliance: A practice that is not dependent on a single surgeon is less risky and gets a higher multiple.
* Growth Profile: A track record of consistent growth will earn a premium valuation.
Valuing a practice is equal parts math, market, and mindset. Buyers do not just buy numbers. They buy a compelling story about future growth.
Post-Sale Considerations
A successful transaction is one where you are happy long after the closing documents are signed. This means planning for your future role, financial security, and the well-being of your staff must begin early in the process. You have more options than you might think.
- Defining Your New Role. You do not have to walk away completely. Many deals involve the selling physician staying on for years, focused solely on clinical work without the headaches of management.
- Structuring Your Financial Future. A sale does not have to be an all-cash transaction. You might choose to “roll over” some of your equity into the new, larger company. This gives you a second potential payday when that larger entity is sold years later.
- Protecting Your Legacy and Team. The future of your dedicated staff is a major concern for most sellers. The terms of a sale can include protections for your team, and finding a buyer whose culture aligns with your own is a key part of our advisory process.
Thinking about these elements from the start ensures the deal structure aligns with your personal, financial, and professional goals for the next chapter.
Frequently Asked Questions
What is the current market trend for selling plastic surgery practices in Chicago, IL?
The market for plastic surgery practices in Chicago is currently strong with growing demand, especially due to a surge in body contouring procedures and innovations like AI in consultations. The aesthetic industry is expanding nationally and locally, which increases the value of well-run practices.
What personal considerations should a plastic surgeon make before selling their practice in Chicago?
Before selling, surgeons need to assess their personal readiness, including the timing for them and their families, whether they want to continue working for someone else, and their plans for post-sale activities. These considerations influence the decision to sell and the terms of the transition.
How is a plastic surgery practice typically valued in Chicago?
Valuation starts with calculating Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which adjusts net income to reflect true cash flow. Then, a valuation multiple is applied based on factors like practice scale, dependence on individual providers, and growth profile. This approach considers profitability and future potential, not just revenue.
What types of buyers are interested in purchasing plastic surgery practices in Chicago, and how do they impact the seller?
Buyers include Strategic Buyers (large practices seeking expansion), Private Equity groups (providing capital for growth), and Hospital Systems (expanding service lines). Each buyer type has different goals and offers different structures, affecting the seller’s role post-sale and financial outcomes.
What steps are involved in the sale process of a plastic surgery practice in Chicago?
The sale process involves preparation and valuation, confidential marketing to qualified buyers, negotiation and selecting the best offer considering terms beyond price, and due diligence to verify financials and operations before closing. This structured process is designed to protect the seller and maximize practice value.
