The Atlanta market for plastic surgery practices is more active than ever. With new types of buyers and evolving valuation methods, practice owners have a significant opportunity to capitalize on their life’s work. This guide provides a clear overview of the key factors you need to consider, from understanding your practice’s true worth to navigating the sale process. Properly preparing for a sale is the single most important step you can take to ensure a successful outcome.
Market Overview
Atlanta stands as one of the Southeast’s top-tier markets for aesthetic medicine. The city’s thriving economy and affluent population create consistent, high demand for plastic surgery procedures. This makes Atlanta-based practices particularly attractive to a wide range of potential buyers, from other surgeons looking to expand to larger healthcare organizations and private equity groups seeking premier assets.
However, this is not a market for the unprepared. Buyers know Atlanta’s potential, and they expect to see well-run practices with strong reputations and clean financial records. Your practice isn’t just competing for patients. When you decide to sell, it will compete for the attention of the best buyers against other high-quality practices in the area.
Key Considerations
Selling a practice goes far beyond finding a buyer and signing a contract. For plastic surgeons in Atlanta, success hinges on navigating a few critical areas.
Understanding Your True Value
Your practice’s worth is more than just its equipment and real estate. A significant portion of its value lies in its goodwill–your reputation, patient list, and established brand in the Atlanta community. Standard accounting formulas often fail to capture this, making a specialized valuation essential.
Identifying the Right Buyer
The best buyer for your practice depends entirely on your goals. Do you want the highest possible price? Do you want to ensure your staff is protected and your legacy continues? A private equity firm, a hospital system, and a local surgeon will all have different offers and different plans for the practice. You need a strategy to find a buyer who aligns with your vision.
Structuring the Deal
How a sale is structured affects everything from your tax bill to your role after the transaction. Options like equity rollovers or earnouts can be powerful tools, but they also add layers of complexity. Getting the structure right is just as important as getting the price right.
Market Activity
The M&A market for aesthetic practices is currently experiencing a wave of investment, and Atlanta is a focal point. We are seeing unprecedented interest from private equity (PE) groups and other large-scale investors who see plastic surgery as a resilient, high-growth sector. These sophisticated buyers are actively looking for well-established practices to serve as “platforms” for future growth.
What does this mean for you? It means there is more capital available and more competition for premium practices than ever before. This creates a prime opportunity for owners to achieve valuations that might have been out of reach a few years ago. However, these buyers are also highly selective. They move quickly and pay top dollar, but only for practices that are professionally prepared and strategically positioned for sale.
The Sale Process
While every transaction is unique, a successful sale typically follows a structured four-stage process. Understanding these steps helps you prepare for the journey ahead.
- Preparation and Valuation. This is the foundational stage. It involves gathering financial documents, optimizing your reported profitability (EBITDA), and getting a comprehensive, market-based valuation. This is where you build the story that buyers will see.
- Confidential Marketing. Your advisor confidentially presents the opportunity to a curated list of qualified buyers. The goal is to create a competitive environment to generate strong initial offers without disrupting your staff or patients.
- Due Diligence. Once a preliminary offer is accepted, the buyer conducts a deep dive into your practice’s financials, operations, and legal standing. This is often the most demanding phase, and many deals encounter challenges here if the practice is not well-prepared.
- Negotiation and Closing. The final stage involves negotiating the definitive purchase agreement and finalizing all legal and financial details. This is where the deal structure is locked in before the transaction officially closes.
Valuation
How do buyers determine what your practice is worth? They don’t look at your revenue. They focus on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents your practice’s true cash flow, normalized for any owner-specific or one-time expenses.
This Adjusted EBITDA is then multiplied by a number (the “multiple”) to arrive at your enterprise value. That multiple isn’t random. It’s determined by a range of factors that signal risk and growth potential to a buyer.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | 100% Owner-driven | Associate-driven revenue |
| Scale (EBITDA) | Below $500K | Above $1M |
| Service Mix | Primarily surgical | Strong ancillary/cash-pay services |
| Growth | Flat year-over-year | Consistent 10%+ annual growth |
Getting this calculation right is the difference between an average price and a premium one. An expert can help normalize your EBITDA and frame the narrative to achieve the highest possible multiple.
Post-Sale Considerations
The closing of the sale is not the end of the journey. Planning for what comes next is vital to protecting your financial future and your legacy. Thinking through these areas early in the process will lead to a much smoother transition.
Your Legacy and Staff
A key part of the negotiation is ensuring your team is treated fairly and your patients continue to receive excellent care. The right buyer will see your staff as one of the practice’s most valuable assets and will have a plan to retain them.
Your Financial Future
The structure of your sale has significant tax implications. Planning ahead with a tax strategist can save you a substantial amount on your final proceeds. This is not something to leave until the last minute.
Your Evolving Role
Many sales, especially to private equity, involve the selling physician staying on for a period of 2-5 years. Your role, compensation, and responsibilities during this transition period are all critical points to negotiate upfront. This can also include earnouts or rolled equity, giving you a chance to share in the future success of the practice.
Frequently Asked Questions
What factors make Atlanta an active market for selling plastic surgery practices?
Atlanta’s thriving economy and affluent population create consistent, high demand for plastic surgery procedures, attracting a wide range of buyers such as other surgeons, healthcare organizations, and private equity groups. However, buyers expect well-run practices with strong reputations and clean financial records.
What is the most important step in preparing to sell a plastic surgery practice in Atlanta?
Properly preparing for the sale is the most important step. This includes gathering financial documents, optimizing reported profitability (EBITDA), obtaining a comprehensive valuation, and positioning the practice to attract premium buyers.
How is the value of a plastic surgery practice in Atlanta typically determined?
Buyers focus on Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), which reflects the practice’s true cash flow normalized for owner-specific or one-time expenses. This figure is multiplied by a market-driven multiple based on factors like provider model, scale, service mix, and growth to determine enterprise value.
Who are the typical buyers for plastic surgery practices in Atlanta, and how do you choose the right one?
Typical buyers include private equity firms, hospital systems, and local surgeons. Choosing the right buyer depends on your goals, such as maximizing sale price, protecting staff, or continuing your legacy. Each buyer type has different offers and visions for the practice.
What post-sale considerations should an owner of an Atlanta plastic surgery practice plan for?
Owners should consider their legacy and staff retention, financial future including tax implications of the sale structure, and their evolving role post-sale. Many sales involve the seller staying on for 2-5 years with negotiated roles and compensation, possibly including earnouts or equity rollovers.