Guide to Selling a Plastic Surgery Practice in Austin, TX

Selling your plastic surgery practice is one of the most significant financial and professional decisions you will ever make. For owners in Austin, TX, the current market presents a unique window of opportunity. This guide provides key insights into the Austin market, the sale process, and how to value your practice, helping you navigate the path to a successful and rewarding exit. The first step toward a successful transition is understanding your practice’s current standing.

Market Overview: Why Austin is a Prime Location

Austin is more than just the live music capital. It is one of the fastest-growing metropolitan areas in the country, and this creates an ideal environment for selling a high-value practice like yours. The appeal to potential buyers is multifaceted and powerful.

A Booming Economy
Austins dynamic economy, with a population now over 2.2 million, is a major draw. The thriving technology sector attracts a steady flow of high-income professionals who are a key demographic for aesthetic and reconstructive procedures. This built-in patient base is a significant asset that sophisticated buyers look for.

Favorable Financials
Texas offers a distinct advantage with no personal or corporate state income tax. This financial incentive makes Austin highly attractive for physicians and investment groups looking to relocate or expand, potentially increasing the pool of qualified buyers for your practice.

An Enviable Lifestyle
Ultimately, a buyer is not just acquiring a business. They are investing in a life. Austins vibrant culture, access to the outdoors, and proximity to other major Texas cities make it a place where top-tier surgeons want to live and work.

Key Considerations Before You Sell

Moving from “thinking about selling” to “ready to sell” involves several critical steps. Beyond the market dynamics, selling a plastic surgery practice in Texas has unique complexities. State regulations, for instance, have specific rules about selling medical practices to non-physicians. Navigating this requires careful legal and financial structuring to ensure a compliant and successful transaction. Furthermore, protecting the confidentiality of the sale is not just a preference; it is a necessity to maintain staff morale and patient trust. Preparing all your financial records, licenses, and operational documents in advance is also critical. A disorganized practice can delay a sale for months or even cause a promising deal to fall apart during due diligence.

Market Activity: Who Is Buying Plastic Surgery Practices?

The market for established plastic surgery practices in Austin is active, but you will not find most opportunities on public websites. The most significant transactions happen privately, driven by a specific set of motivated buyers. Understanding who these buyers are is key to positioning your practice correctly.

The main buyers in today’s market include:

1. Strategic Groups and MSOs: These are often larger, established plastic surgery groups or multi-specialty platforms looking to expand their footprint in a high-growth market like Austin. They seek turn-key operations with certified facilities to gain immediate market share.
2. Private Equity Firms: Investor-backed groups are actively consolidating the healthcare space. They are attracted to profitable, well-run practices that can serve as a “platform” for future growth and acquisitions in the region.
3. High-Earning Physicians: Successful surgeons from other states are often drawn to Austin for its lifestyle and financial benefits. They are looking to acquire an established practice with a strong patient base and reputation rather than starting from scratch.

The Sale Process

The path to selling your practice generally follows four major stages, each with its own set of challenges. It begins with preparation, where you work with an advisor to analyze your financials, value your practice, and prepare a confidential marketing package. The next stage is confidentially marketing your practice to a curated list of qualified buyers. Once interest is established, you move into the due diligence phase. This is the most intensive part of the process, where the buyer and their team will scrutinize every aspect of your practice, from financial statements to employee contracts. This is where many deals fail due to poor preparation. Finally, upon successful due diligence, you proceed to the legal closing to finalize the sale.

How Your Practice is Valued

Understanding what your practice is truly worth is the foundation of a successful sale. Buyers, especially private equity groups, do not value your practice based on revenue alone. They focus on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This figure represents the true cash flow of your business by adding back owner-specific perks and one-time expenses.

For example, a simple adjustment can dramatically change your practices perceived value:

This normalized figure is then multiplied by a specific factor to determine your enterprise value. While a general practice might sell for a low multiple of revenue, a well-positioned plastic surgery practice with an associate-driven model and strong profitability can command a much higher multiple of its Adjusted EBITDA.

Post-Sale Considerations

Finalizing the sale is not the end of the journey. Planning for what comes next is crucial for protecting your legacy, your team, and your financial future. It is important to think through these key areas well before the deal is done.

Three things to plan for after the handshake:

1. Your Future Role. Do you want to retire immediately, or would you prefer to continue working for a few years? Many transaction structures, such as earnouts or equity rollovers, involve the selling physician staying on. This can provide a “second bite at the apple,” allowing you to benefit from the practice’s future growth.
2. Your Team’s Future. You have likely spent years building a loyal and skilled team. A critical part of the negotiation is ensuring your staff are protected and retained by the new owner, which also ensures a smooth transition for patients.
3. Your Financial Take-Home. The structure of your sale has major tax implications. How the deal is classified, whether as an asset or entity sale, can significantly change your net proceeds. Structuring the sale for optimal post-tax returns requires specialized advice from the very beginning.