Selling your Kansas City plastic surgery practice is a significant decision. You have built a valuable asset in a strong market where demand for aesthetic procedures is climbing. However, turning that asset into a successful exit requires more than just a willing buyer. It demands careful preparation, strategic timing, and a deep understanding of the transaction process. This guide provides a clear overview to help you navigate the path ahead.
A Growing Market for Aesthetics
The timing for practice owners in aesthetics has never been more interesting. The national plastic surgery market is experiencing significant growth, and this trend presents a real opportunity for practice owners in Missouri.
National Momentum
Nationally, the aesthetic market is booming. In 2022 alone, aesthetic procedures generated nearly $12 billion in the U.S. We see a clear rise in demand for body contouring and high-revenue surgical procedures like breast augmentations and abdominoplasties. This national tailwind gives well-run practices a strong starting point for valuation conversations.
Kansas City’s Opportunity
In Kansas City, these national trends translate into a vibrant local market. Buyers are actively looking for established practices with a strong reputation and consistent revenue streams. However, they will also closely analyze the local competitive landscape. Understanding how your practice is positioned within the Kansas City market is the first step toward leveraging this opportunity for a premium valuation.
Three Things to Prepare Before You Sell
A strong market is a great start, but a successful sale depends on your preparation. Sophisticated buyers, especially private equity groups, look for professionalism and clarity. Here are three areas to focus on now.
- Your Financial Story. Buyers today look past simple revenue multiples. They want to see a clear calculation of your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This means cleaning up your financial statements to show the true profitability of the practice.
- Your Documentation. disorganized records are a major red flag for buyers. Before you go to market, ensure all business licenses, employment agreements, and key contracts are compiled and current. This prevents delays and builds buyer confidence during due diligence.
- Your Transition Plan. The sale process itself can take anywhere from four to twelve months. Buyers will want to see a clear plan for a smooth transition of ownership, patient care, and staff. Thinking through this ahead of time shows foresight and planning.
Who is Buying Practices in Kansas City?
You will not find many plastic surgery practice sales advertised on public websites. Most high-value transactions in Kansas City, MO, happen confidentially. The most active buyers are often private equity (PE) firms and larger strategic groups looking to expand their footprint in the Midwest.
These buyers do not just buy a practice. They invest in a platform for growth. They look beyond a single doctor’s reputation and assess the underlying business structure. This is why two practices with similar revenues can receive very different offers.
| Attribute | A Less Attractive Target | A PE-Ready Practice |
|---|---|---|
| Provider Model | 100% reliant on the owner | Associate-driven with multiple providers |
| Revenue | Steady but flat | Demonstrates consistent year-over-year growth |
| Financials | Basic bookkeeping | Clean, accrual-based accounting with clear EBITDA |
| Operations | Owner-managed | Professionalized with documented systems |
What Does the Sale Process Involve?
Selling your practice is a marathon, not a sprint. A well-managed process is designed to protect your confidentiality and maximize your final sale price. While every deal is unique, the journey generally follows four key stages.
- Valuation and Preparation. This initial phase involves a deep dive into your financials to determine an accurate market value and prepare marketing materials that tell your practice’s story. This is where you fix issues before buyers find them.
- Confidential Marketing. Your advisor will confidentially approach a curated list of qualified financial and strategic buyers. The goal is to create a competitive environment without alerting your staff, patients, or competitors.
- Negotiation and Letter of Intent (LOI). After initial offers are received, we help you negotiate the best terms and select a partner. This stage concludes with signing a non-binding Letter of Intent, which outlines the core deal structure.
- Due Diligence and Closing. This final, intensive stage is where the buyer validates all financial and operational information. It can last 60 to 90 days. A smooth due diligence process, managed by experts, leads directly to the final signing and closing of the sale.
How is a Plastic Surgery Practice Valued?
One of the biggest mistakes an owner can make is misunderstanding their practice’s true value. While you may hear about simple revenue multiples, sophisticated buyers value your practice based on its profitability and future potential.
Beyond Revenue Multiples
Simple rules of thumb, like 0.8 to 1.0 times annual revenue, can be a starting point. However, this method ignores the most important factor: profitability. A practice with high revenue but low profit margins is far less valuable than a leaner practice with strong cash flow. This is why the market standard for valuation is a multiple of EBITDA.
The Power of Adjusted EBITDA
Adjusted EBITDA is the key metric. We start with your stated profit and then “add back” expenses that a new owner would not incur. This includes your personal auto-lease, non-essential travel, or above-market personal salary. This process reveals the true earning power of the business. This adjusted profit figure is then multiplied by a factor (the multiple) based on your practice’s size, growth, and provider model to determine its enterprise value.
Planning for Life After the Sale
The day the deal closes is not the end of the journey. A successful transition is defined by what happens next. The best deals are structured with your long-term personal and financial goals in mind from the very beginning. Here are three things to consider.
- Your Future Role. Do you want to leave clinical practice immediately, or would you prefer to stay on for a few years? Many buyers want the seller to remain involved. This can often be structured to give you clinical autonomy without the burdens of management, a path many physicians find rewarding.
- Your Financial Outcome. The structure of your sale has massive tax implications. Furthermore, parts of the deal might include an “earnout” (future payments based on performance) or “rollover equity” (retaining a minority stake in the new, larger company). This provides an opportunity for a second financial win when the larger group sells again in the future.
- Your Legacy. You have spent a career building your practice and your team. The right partner will be committed to protecting your staff and honoring the legacy you have built in the Kansas City community. Ensuring this fit is a critical, and often overlooked, part of the process.
Frequently Asked Questions
What is the current market trend for selling a plastic surgery practice in Kansas City, MO?
The market for plastic surgery practices in Kansas City is strong, driven by national growth in aesthetic procedures which generated nearly $12 billion in 2022. There is growing demand for body contouring and high-revenue surgical procedures, creating a vibrant local market with active buyers seeking established and reputable practices.
What preparation is necessary before selling my plastic surgery practice in Kansas City?
You should focus on three key areas: (1) Presenting a clear financial story using Adjusted EBITDA rather than just revenue, (2) Organizing all documentation such as business licenses and contracts to prevent delays, and (3) Developing a transition plan for ownership, patient care, and staff to demonstrate foresight and smooth handover.
Who typically buys plastic surgery practices in Kansas City?
Most high-value sales are private transactions not publicly advertised. The main buyers are private equity firms and larger strategic groups seeking to expand their presence in the Midwest. They look for practices with multiple providers, steady growth, clean financials, and professionalized operations.
How is a plastic surgery practice valued in Kansas City?
Valuation goes beyond simple revenue multiples. While 0.8 to 1.0 times annual revenue can be a rough starting point, the important factor is Adjusted EBITDA — profitability after adding back personal or non-essential expenses. This adjusted profit is then multiplied by a factor depending on practice size, growth, and provider model to determine enterprise value.
What should I consider for life after selling my plastic surgery practice?
Plan your future role ‚Äî decide whether to leave clinical practice immediately or stay on to some degree, consider the tax implications of your sale structure including earnouts or equity retention, and prioritize finding a buyer who respects your practice’s legacy and is committed to protecting your staff and community reputation.