Selling your practice is one of the most important financial decisions you will ever make. As a Missouri plastic surgeon, understanding the current market, your practice’s true value, and the steps involved is the first move toward a successful transition. This guide provides a clear overview of the key factors you need to consider, from initial planning to post-sale life, helping you navigate the path to a rewarding exit.
Market Overview
The timing for selling a plastic surgery practice is strong. National trends show a robust and growing demand for aesthetic procedures, creating a favorable seller’s market that extends to practitioners here in Missouri.
National Momentum
The entire plastic surgery industry is experiencing significant growth. In 2023 alone, the American Society of Plastic Surgeons reported a 5% increase in surgical procedures and a 7% increase in minimally-invasive treatments. This upward trend, driven by high demand for body contouring and facial procedures, indicates a healthy appetite from buyers looking to invest in profitable, growing practices. For owners, this means there is a large pool of potential buyers actively seeking acquisition opportunities.
Missouri’s Opportunity
While national trends are positive, the Missouri market presents its own unique landscape. Your practice’s value is influenced by local demographics, competition, and your specific patient base. A thriving practice with a strong local reputation and efficient operations is an attractive asset. The key is to position your Missouri practice to capture the attention of national-level buyers and capitalize on these broad market tailwinds.
Key Considerations
Beyond market trends, selling your practice is a deeply personal journey. It s important to be clear on your reasons for selling, whether it’s planning for retirement, seeking a partner for growth, or simply desiring a change in lifestyle. Regardless of your motivation, preparation is key. This process should begin well before you plan to exit. We advise assembling a team of trusted experts, including legal counsel, an accountant, and an M&A advisor, early on. They can help you organize your financial records, review contracts, and ensure all compliance documentation is in order. A well-prepared practice not only ensures a smoother process but also attracts the right type of buyer and a higher valuation.
Market Activity
The demand for high-performing plastic surgery practices has attracted a diverse group of buyers. Understanding who they are and what they want is critical to finding the right fit for your goals. Here are the most common buyers in the Missouri market today.
- Private Equity (PE) Firms. These are currently the most aggressive buyers. PE firms look for profitable practices with strong growth potential. They often pay a premium valuation in exchange for a seller commitment to stay on for 3-5 years to help drive growth. This path typically offers the highest financial return.
- Large Group Practices. A regional or national single-specialty group may look to acquire your practice to expand its footprint in Missouri. This can provide you with significant resources and a built-in operational team.
- Multi-Specialty Platforms. Consolidation across aesthetics, plastics, and dermatology is on the rise. These buyers want to create comprehensive service hubs, and a plastic surgery practice is a valuable addition to increase their referral network and profitability.
- Local Physicians or Groups. The traditional model of selling to another doctor is still an option. This can offer a seamless transition for your patients and staff, although these buyers may have more limited financial resources compared to institutional investors.
The Sale Process
A successful practice sale is a marathon, not a sprint. From the initial decision to the final closing, you should anticipate a timeline of 12 months or more. The process generally begins with preparing the practice for sale, which includes a professional valuation and organizing your financial and operational documents into a clear narrative. Once prepared, your advisor will confidentially market the practice to a curated list of qualified buyers. This leads to negotiations on price and terms. After a Letter of Intent (LOI) is signed, the buyer conducts thorough due diligence, a comprehensive review of your finances, compliance, HR, and operations. This is often the most intensive phase of the sale. Successfully navigating due diligence leads to the final purchase agreement and closing.
Valuation
One of the first questions every owner asks is, “What is my practice worth?” In today’s market, the value of your plastic surgery practice is not based on revenue or assets alone. Instead, buyers determine value using a straightforward formula: Adjusted EBITDA x a Market Multiple.
Adjusted EBITDA is your practice’s real cash flow. It’s your net income after adding back interest, taxes, depreciation, amortization, and any owner-specific or one-time expenses (like a personal vehicle or above-market salary). This number represents the true profitability a new owner can expect.
This Adjusted EBITDA figure is then multiplied by a number (the “multiple”) to reach your practice’s total value. The multiple isn’t fixed; it changes based on the quality and risk profile of your practice.
| Factor Influencing Valuation | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | 100% Owner Dependent | Associate-Driven, Scalable |
| Revenue Mix | Heavily Reliant on One Procedure | Diverse Surgical & Non-Surgical |
| Growth | Flat or Declining Revenue | Consistent Year-Over-Year Growth |
| Operations | Inefficient, Manual Processes | Streamlined with Modern Systems |
| Referral Base | Single Source of Referrals | Multiple, Diverse Sources |
Because these factors are so important, a professional valuation is the only way to understand what your Missouri practice could be worth to a sophisticated buyer.
Post-Sale Considerations
Closing the deal is not the end of the journey. Planning for what comes next is just as important. For most plastic surgeons, the transition involves two critical components: your future role and your financial future. Many buyers, particularly private equity firms, will want you to stay with the practice for a period of time, often 3-5 years, to ensure a smooth transition for patients and staff. Your compensation, clinical autonomy, and schedule during this period are all key points to be negotiated in the sale agreement. At the same time, the structure of your sale has significant implications for your after-tax proceeds. Working with financial and tax advisors in advance can help you structure the deal in a way that maximizes your net return and sets you up for a secure financial future.
Frequently Asked Questions
What is the current market trend for selling plastic surgery practices in Missouri?
The market for selling plastic surgery practices in Missouri is strong, driven by a national increase in demand for aesthetic procedures including a 5% rise in surgical procedures and a 7% increase in minimally-invasive treatments in 2023. This creates a favorable seller’s market with many potential buyers interested in profitable practices.
Who are the typical buyers of plastic surgery practices in Missouri?
Typical buyers include Private Equity (PE) Firms, which offer premium valuations and seek a commitment from sellers to stay on for growth; Large Group Practices aiming to expand regionally or nationally; Multi-Specialty Platforms consolidating aesthetics and related fields; and Local Physicians or Groups looking for seamless patient and staff transitions.
How is the value of a plastic surgery practice in Missouri determined?
The value is calculated using Adjusted EBITDA (net income plus interest, taxes, depreciation, amortization, and owner-specific expenses) multiplied by a market multiple. The multiple varies based on factors like provider model, diversity of revenue, growth trends, operational efficiency, and referral sources.
What steps should I take to prepare my Missouri plastic surgery practice for sale?
Preparation includes assembling a team of experts such as legal counsel, an accountant, and an M&A advisor, organizing financial and operational records, reviewing contracts, and ensuring compliance. Early preparation helps attract the right buyers and achieve a higher valuation.
What should I consider for post-sale life after selling my plastic surgery practice in Missouri?
Consider your future role with the practice, as many buyers especially PE firms want sellers to stay for 3-5 years for transition. Negotiate compensation, autonomy, and schedule accordingly. Also, structure the sale with financial and tax advisors to maximize after-tax proceeds and secure your financial future.