Guide to Selling a Plastic Surgery Practice in Colorado

The market for selling a plastic surgery practice in Colorado is strong. Significant interest from buyers, including private equity groups, presents a prime opportunity for owners considering their next steps. However, turning this opportunity into maximum value requires careful planning and strategic navigation. This guide provides insight into the current landscape, what drives value in your specialty, and how to prepare for a successful transition.

Market Overview: The Colorado Landscape

If you are a plastic surgery practice owner in Colorado, the current market is in your favor. We are seeing significant demand across the state, from Denver to the Front Range, creating a competitive environment for well-run practices.

A Strong Seller’s Market

Established practices with a proven history of collections and a strong reputation are particularly attractive. Buyers are not just looking for a patient list. They are looking for a stable business with efficient operations and a clear path for future growth. Your years of hard work have built an asset that is in high demand.

Diverse and Motivated Buyers

The buyer pool has expanded beyond individual surgeons looking to acquire their own practice. Sophisticated regional groups and national private equity firms are actively seeking to partner with or acquire leading plastic surgery practices in Colorado. This creates more options for you as a seller and can lead to higher valuations as different buyers compete.

Key Considerations for Colorado Sellers

While the market is favorable, certain features can significantly enhance your practice’s appeal and final sale price. Buyers in the plastic surgery space place a premium on practices with diversified revenue streams and robust infrastructure. An integrated MedSpa, for example, is no longer just a nice-to-have. It is a powerful value driver. Similarly, practices with their own accredited in-office surgical suite command higher interest as they offer greater control and profitability. Beyond assets, the process itself requires careful handling. Confidentiality is critical. A sale process should be managed discreetly to protect your relationships with staff, patients, and referral sources until the time is right.

Current Market Activity

The theory of a strong market is proven by real-world activity. We are seeing deals get done, and a few key trends are emerging for plastic surgery practices in Colorado.

1. Private Equity is Here. The partnership between The Center for Cosmetic Surgery and Latticework Capital Management in late 2023 is a clear signal. Private equity buyers are not just browsing. They are actively investing in Colorado, often bringing resources that can lead to partnership models that offer both a significant payout and continued involvement.

2. Premiums for Well-Run Businesses. Buyers are willing to pay more for practices that are not dependent on a single surgeon. If you have associate surgeons, streamlined operations, and clean financial records, you will attract more competitive offers.

3. Strategic Partnerships Over Outright Sales. Many owners are less interested in simply handing over the keys and walking away. Today’s deals often involve strategic partnerships, where the selling physician can take some chips off the table while retaining equity and a leadership role in a larger, growing organization.

The Sale Process Simplified

A successful sale does not happen by accident. It follows a structured process designed to protect your interests and maximize your outcome. While every deal is unique, the journey typically involves four key phases. It begins with thorough preparation, including a professional valuation and organizing your financial and operational documents. Next comes confidential marketing, where we identify and approach a curated list of qualified buyers. This leads to negotiation and due diligence, a critical phase where a buyer verifies all information about the practice. This is often where unexpected challenges arise. The process concludes with the legal closing and a smooth transition to the new owners. Starting the preparation phase 12 to 24 months before you plan to sell is the single best way to ensure you sell on your terms, not the buyer’s.

Understanding Your Practice’s Value

One of the first questions owners ask is, “What is my practice worth?” Forget simple rules of thumb based on revenue. Sophisticated buyers value your practice based on a metric called Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This reflects your true cash flow after normalizing for personal expenses or one-time costs. That Adjusted EBITDA figure is then multiplied by a number (the multiple) that is determined by risk and growth potential. The higher the quality of your practice, the higher the multiple.

Here are some of the key factors that influence your valuation multiple:

Post-Sale Considerations

The closing of the sale is a milestone, but it is not the end of the story. Planning for what comes next is just as important as negotiating the deal itself. A well-structured transaction considers the tax implications to ensure you keep as much of your hard-earned proceeds as possible. It also requires a thoughtful transition plan to protect your legacy and provide stability for your dedicated staff and patients. For many owners, the sale may also include an earnout or the opportunity to retain equity in the new, larger entity. These structures can provide significant future upside, but they require careful review and negotiation to align with your personal and financial goals.