Guide to Selling a Med Spa Practice in Georgia

The market for Med Spas in Georgia is active, driven by national growth and strong consumer demand. For practice owners, this presents a significant opportunity. However, a successful sale goes beyond finding a buyer. It requires strategic preparation, a deep understanding of Georgia-specific regulations, and a clear view of your practice’s true value. This guide provides the insights you need to navigate the process and achieve your financial goals.

Market Overview

A National Boom

The U.S. Med Spa market is experiencing explosive growth, projected to nearly double from $5.6 billion in 2023 to $11.1 billion by 2028. This rapid expansion is fueled by strong consumer spending and growing cultural acceptance of aesthetic treatments. The industry remains highly fragmented, with around 90% of the nearly 10,500 locations being privately owned. This creates a perfect environment for consolidation, as private equity firms and larger strategic buyers are actively seeking to build regional and national platforms.

The Georgia Opportunity

This national trend is reflected in Georgia, where the market for skin treatments is poised for sustained growth. For Med Spa owners in the state, this means there has never been a better time to explore your options. Buyer demand is high for well-run practices, creating a competitive environment that can lead to premium valuations for sellers who are properly prepared.

Key Considerations for a Georgia Med Spa Sale

Before you consider selling, it is important to understand Georgia’s unique regulatory landscape. The states approach to the Corporate Practice of Medicine (CPOM) doctrine directly impacts how your practice must be structured for a successful sale, especially to a non-physician buyer like a private equity group.

Here are two things you must understand about your practice structure:

1. Navigating Ownership Rules. While Georgia law prevents corporations from practicing medicine, it does allow non-physicians to own medical practices. The critical factor is that the business structure must absolutely guarantee that all clinical decisions remain in the hands of a licensed physician, free from any corporate or non-medical influence.

2. The MSO Solution. If your current structure doesnt meet this standard, you may need to restructure before a sale. A common solution is creating a Management Services Organization (MSO). The MSO handles all non-clinical functions like billing, marketing, and HR, while the physician-owned medical entity handles all clinical services. This clean separation satisfies compliance and makes your practice far more attractive to a wider range of buyers. Proper preparation before selling can significantly increase your final practice value.

Market Activity

The Med Spa industry is a hotbed of M&A activity. We see a strong appetite from several types of buyers, each with different goals. Strategic buyers, often larger Med Spa groups or dermatology platforms, are looking to expand their geographic footprint in growing markets like Georgia.

At the same time, private equity (PE) firms see the fragmented market as a prime opportunity for a “roll-up” strategy. They acquire a strong “platform” practice and then bolt on smaller practices to build a dominant regional player. This competitive tension between different buyer types is great news for sellers. It creates a dynamic marketplace where well-positioned practices can attract multiple offers and achieve premium valuations. The key is running a process that leverages this competition confidentially. Timing your practice sale correctly can be the difference between average and premium valuations.

The Five Stages of a Practice Sale

Selling your Med Spa is a process with distinct stages. While every deal is unique, understanding the general path can help you prepare for the journey. We find that owners who are prepared for buyer scrutiny and have their documentation in order experience a much smoother transaction. The due diligence process is where many practice sales encounter unexpected challenges.

Here is a simplified look at the typical sale process:

How Your Med Spa is Valued

Many owners wonder, “What is my practice really worth?” The answer isn’t based on revenue or what you have invested over the years. Sophisticated buyers value your Med Spa based on a multiple of its Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

Adjusted EBITDA represents your practice’s true, ongoing profitability. We calculate it by taking your net income and adding back owner-specific expenses that a new owner would not incur, like a personal car lease or an above-market salary. For example, if your practice has $500k in net income but we identify $200k in adjustments, your Adjusted EBITDA is $700k. This adjusted number is then multiplied by a market-based multiple. For Med Spas, this multiple can range widely based on factors like size, provider model, and growth rate. A comprehensive valuation is the foundation of a successful practice transition strategy.

Planning for Life After the Sale

The day you close the deal is not the end of the story. It is the beginning of a new chapter. Planning for this transition during negotiations is critical to ensuring the outcome meets your long-term goals. A well-structured deal considers what happens to you, your proceeds, and your team after the papers are signed.

Your Future Role

Do you want to leave clinical practice entirely, or would you prefer to stay on for a few years? Buyers are often flexible. Your transition plan can be structured to fit your personal timeline, whether it involves a clean break or a gradual reduction in your hours while continuing to see patients.

Structuring Your Payout

The final sale price is often composed of more than just cash at closing. Many deals include an “earnout,” where you receive additional payments for hitting performance targets post-sale. You may also have the chance for an “equity rollover,” where you retain a minority stake in the new, larger company. This provides a potential “second bite of the apple” when the new entity is sold again years later.

Protecting Your Legacy

You have spent years building your practice, your team, and your reputation. The right buyer will respect that. Finding a partner who shares your clinical values and is committed to taking care of your staff is just as important as the purchase price. Your legacy and staff deserve protection during the transition to new ownership.