Guide to Selling a Plastic Surgery Practice in Arizona

Selling your plastic surgery practice is a major life decision. In today’s market, especially in a high-growth state like Arizona, a successful exit requires more than just finding a buyer. It demands strategic preparation and an understanding of what drives value. This guide provides a clear overview of the current landscape, key steps, and critical considerations to help you navigate this transition with confidence.

Market Overview

The timing for selling a plastic surgery practice in Arizona is strong. The market is not just stable; it’s growing. Nationally, 2023 saw a 5% rise in surgical procedures and a 7% increase in minimally invasive treatments. For practice owners, this signals robust and consistent buyer demand.

Our region, which includes Arizona, is a national hub for these services, accounting for nearly a third of all cosmetic procedures in the U.S. This high concentration means buyers are actively looking for opportunities here. The most in-demand procedures in our area reflect national trends and highlight what acquirers find attractive:

1. Breast Augmentation: Commands 37% of the national total.
2. Hyaluronic Acid Fillers: Represents 33% of all U.S. procedures.
3. Noninvasive Skin Tightening: A remarkable 44% of the national total happens here.
4. Facelifts: Our region accounts for 35% of all facelifts performed.

This data shows a healthy demand for a wide range of aesthetic services, positioning well-rounded Arizona practices as highly attractive assets.

Key Considerations

A successful sale goes far beyond your profit and loss statement. Sophisticated buyers today look for a healthy, well-run business with a strong foundation. Before you even think about putting your practice on the market, you should focus on a few key areas.

Beyond the Numbers

Buyers are acquiring your reputation and patient loyalty, not just your equipment. They will assess your brand equity, patient experience, and clinical outcomes. A practice with an excellent reputation and high patient retention, often in the 70-80% range, is significantly more valuable than one defined only by its revenue.

Operational Readiness

Is your practice running efficiently? Buyers scrutinize everything from patient scheduling and cost controls to employee compensation structures. Having optimized, documented processes in place demonstrates stability and reduces the perceived risk for an acquirer.

Arizona-Specific Rules

You also need to be aware of local regulations. For example, in Arizona, the buyer of your practice must be a licensed medical professional. Ensuring all your licensing, permits, and HIPAA compliance protocols are in order is not just good practice; it’s a requirement for a smooth due diligence process.

Market Activity

The market for plastic surgery practices is active, but not all buyers are the same. Understanding who is acquiring practices and what they are looking for is critical to positioning your practice effectively. The growth in the men’s cosmetic market, with chest and core procedures up 10%, is just one example of the new opportunities that attract buyers.

Today’s buyers typically fall into one of three categories:

1. The Strategic Acquirer: Often a larger practice or regional health system looking to expand its geographic footprint or service lines. They buy for synergy and are interested in your established patient base and operational efficiencies.
2. The Private Equity (PE) Platform: These are financial buyers who see plastic surgery as a high-growth investment. They look for well-managed practices with strong EBITDA (earnings) that can serve as a “platform” for future acquisitions. They are often willing to pay a premium for scale and growth potential.
3. The Individual Practitioner: This might be an associate ready to take over or an outside surgeon looking to acquire their own practice. They are buying a job and a future, and are often focused on the practice’s culture and patient relationships.

Knowing the motivations of each buyer type is key. We find that the best outcomes happen when we match a seller’s personal goals to the right kind of buyer.

The Sale Process

Selling your practice follows a structured process. While every deal is unique, the journey generally moves through predictable phases. Being prepared for each step is the best way to prevent delays, surprises, and deal fatigue. The due diligence phase, in particular, is where many unprepared sellers run into trouble.

Here is a simplified look at the typical sale process:

A smooth process depends almost entirely on the quality of your preparation in Phase 1. Having your financial, corporate, and regulatory documents in order before you go to market prevents unexpected issues and keeps you in control of the timeline.

Valuation

“What is my practice worth?” It is the most common question we hear. The answer is more complex than a simple formula. While old rules of thumb used a percentage of revenue, sophisticated buyers value practices based on a multiple of Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

Think of Adjusted EBITDA as your practice’s true cash flow. We calculate it by taking your net income and adding back taxes, interest, and non-cash expenses. Then, we “normalize” it by adjusting for any owner-related expenses that a new owner would not incur, like a personal car lease or an above-market salary. This final number gives a clear picture of the practice’s profitability.

That Adjusted EBITDA figure is then multiplied by a number (the “multiple”) to determine your practice’s enterprise value. That multiple is influenced by several key factors:

1. Scale: Practices with higher EBITDA command higher multiples because they are seen as less risky.
2. Provider Reliance: A multi-provider practice is more valuable than a solo practice that is highly dependent on one owner.
3. Growth Profile: Is your practice growing year-over-year? Do you have opportunities to add new services or providers? Buyers pay a premium for proven growth.
4. Service Mix: A healthy balance of surgical and high-margin, minimally invasive procedures is very attractive.

A professional valuation tells the story of your practice in a language that buyers understand and helps ensure you achieve a value that reflects your years of hard work.

Post-Sale Considerations

The day you sign the papers is not the end of the journey. A well-structured deal considers what happens after closing to protect your legacy, your team, and your financial future. This requires planning from the very beginning of the process.

Your Future Role

Do you want to walk away completely, or would you prefer to stay on for a few years, focusing only on patient care? Many deals include an employment agreement for the selling physician. Some structures, like an equity rollover, allow you to retain a minority stake in the new, larger entity. This gives you a “second bite at the apple” when that entity is sold again in the future.

Protecting Your Team

A key concern for many owners is the well-being of their long-time staff. Negotiating terms that protect your team and preserve the practice’s culture can and should be a part of the deal structure. Communicating the transition to your staff and patients in a thoughtful, planned manner is also critical for a smooth transfer of goodwill.

Maximizing Your Return

The structure of your sale has major tax implications. An asset sale is taxed differently than an entity sale. Strategic use of earnouts (additional payments tied to future performance) and rollovers can also affect your final take-home proceeds. Planning for these elements with an experienced advisor can dramatically impact your financial outcome.