Selling your Illinois plastic surgery practice is one of the most important financial decisions of your career. It requires a strategic approach to navigate market dynamics, valuation, and the transition process itself. A well-planned sale ensures you protect your legacy and achieve your financial goals. We created this guide to give you a clear overview of the path ahead.
Market Overview
The market for plastic surgery practices in Illinois is robust, supported by strong patient demand and increasing investor attention. This creates a favorable environment for practice owners who are considering a sale.
A Strong and Growing Market
Nationally, demand is on the rise. Cosmetic surgical procedures grew by 5% in 2023, with minimally invasive treatments increasing by 7%. Illinois is a key part of this trend. The East North Central region, which includes Illinois, accounts for a large share of popular procedures, like 15% of all breast augmentations and 13% of all liposuction. This sustained demand provides a stable foundation for practice revenue and attracts buyers looking for growth.
Increasing Buyer Interest
Buyer activity in Illinois is notable. We are seeing private equity firms and large strategic groups actively looking for valuable practices to acquire. The 2023 formation of Ascend Plastic Surgery Partners in Chicago is a clear signal that sophisticated buyers see significant opportunity here. This influx of capital creates a competitive environment that can drive higher valuations for well-prepared practices.
Key Considerations
Moving from “if” to “how” you sell your practice involves a new set of questions. The right answers depend entirely on your personal and financial goals. A hospital system, for example, has different objectives than a private equity group or another surgeon looking to expand. Understanding these differences is key to finding a partner who will protect your legacy.
We find that many owners start thinking about this 2 to 3 years before they plan to exit. This is the ideal timeframe. It gives you time to prepare your practice to attract the right kind of buyer and structure a deal that aligns with your vision for the future. Assembling your team of legal, financial, and M&A advisors early in this process ensures that every decision you make serves your long-term goals.
Market Activity
While the Illinois market is active, transaction details are rarely made public. This makes it difficult for a solo owner to know what their practice is truly worth. Here is what we are seeing on the ground.
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Deals Are Happening. Recently, a successful plastic surgery practice in suburban Cook County with over $900,000 in revenue was brought to market. This shows that profitable, well-run practices are attractive assets that buyers are actively seeking.
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Valuation Data is Private. The biggest challenge for owners is the lack of public information on sale prices and valuation multiples. Unlike real estate, you cannot simply look up comparable sales. Buyers have access to this data. Sellers often do not.
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Your Narrative Is Key. In a market with limited public data, the story you tell becomes critical. Buyers are looking for practices with a loyal patient base, a strong reputation, and a clear path for future growth, just like the Cook County practice.
The Sale Process
A practice sale is a structured project, not a single event. From start to finish, the process typically takes between 6 and 12 months. It begins with preparing your financials and practice information for review. This is followed by confidentially approaching a curated list of potential buyers under a Non-Disclosure Agreement (NDA) to protect your privacy.
Once a buyer shows serious interest, they will perform due diligence, which is a deep review of your operations, finances, and compliance. This is often the most intensive part of the process. The final stage involves negotiating the definitive agreements and moving toward a closing. The structure you choose for the sale, an Asset Sale or an Equity Sale, has significant tax and liability implications. This single decision can dramatically affect your net proceeds.
Valuation
Determining your practices value is more than applying a simple formula. Sophisticated buyers start with a key metric: Adjusted EBITDA. This is your practice’s earnings before interest, taxes, depreciation, and amortization, but normalized for any owner-specific or one-time expenses. This number represents the true cash flow of the business.
This Adjusted EBITDA is then multiplied by a number, the “multiple,” to arrive at your practice’s enterprise value. That multiple is not fixed. It changes based on risk and growth potential. Goodwill, your practice’s reputation and patient loyalty, is a major part of this calculation.
Here are a few factors that influence your valuation multiple:
| Factor | Impact on Valuation Multiple |
|---|---|
| Provider Reliance | Higher value for practices not dependent on a single surgeon. |
| Procedure Mix | Strong recurring revenue from injectables improves stability. |
| Growth Profile | A documented history of growth commands a premium. |
| Payer Mix | A high percentage of cash-pay can increase margins and value. |
Getting this calculation right is the foundation of a successful sale.
Post-Sale Considerations
A successful transaction is not just about the price you get at closing. It is about what happens the day after for you, your team, and your patients. Planning for this transition is a critical part of the process.
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Your Transition Plan. Most buyers will want you to stay on for a period of time, typically 1 to 3 years, to help transition relationships and ensure continuity. Your role, compensation, and schedule during this period are all key points to negotiate.
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Your Financial Future. Your proceeds may not come as a single lump sum. Deals are often structured with cash at closing plus other components like an “earnout,” which is additional payment for hitting future performance targets, or “rollover equity,” where you retain a minority stake in the new, larger company. This can create a second, often larger, payday down the road.
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Your Team’s Security. For many owners, protecting their long-time staff is a major priority. A good advisor helps you negotiate terms that ensure your key employees are retained and incentivized by the new owner, protecting the culture you built.
Your legacy and staff deserve protection during the transition to new ownership.
Frequently Asked Questions
What is the current market outlook for selling a plastic surgery practice in Illinois?
The market for plastic surgery practices in Illinois is robust with strong patient demand and significant investor interest, including private equity firms and strategic groups. The East North Central region, including Illinois, holds a substantial share in popular procedures, making it an attractive market for buyers.
When should I start planning the sale of my plastic surgery practice?
It is ideal to start thinking about selling your practice 2 to 3 years before you plan to exit. This timeframe allows you to prepare your practice to attract the right buyers and to structure a deal that aligns with your personal and financial goals.
What factors influence the valuation of my plastic surgery practice?
Valuation is based on Adjusted EBITDA multiplied by a variable multiple that reflects risk and growth potential. Key factors affecting this multiple include: provider reliance (less dependence on a single surgeon increases value), procedure mix (recurring revenue from injectables improves stability), growth profile (documented growth commands a premium), and payer mix (high percentage of cash-pay increases margins).
What does the sale process of a plastic surgery practice in Illinois typically involve?
The sale process typically takes 6 to 12 months and involves preparing financials, confidentially approaching buyers under NDA, buyer due diligence, negotiation of definitive agreements, and closing. Deciding between an Asset Sale or Equity Sale is important as it affects tax and liability outcomes.
What should I consider for the post-sale transition period?
Post-sale considerations include planning your transition role, which often involves staying 1 to 3 years to ensure continuity, structuring your financial proceeds, which may include earnouts or rollover equity, and securing your team’s future by negotiating terms that retain and incentivize key employees.