Selling your plastic surgery practice is one of the most significant financial and professional decisions you will ever make. For owners in Oklahoma, the current market presents a unique set of opportunities driven by high patient demand and aggressive buyer interest. This guide provides an overview of the landscape, what to expect, and how to position your practice for a premium valuation. It is for you if you are just starting to think about selling your practice, or if you are ready to start the process now.
Executive Summary
For plastic surgeons in Oklahoma, the conditions for selling a practice are strong. The state shows high patient demand, and the national market is seeing significant investment, particularly from private equity. A successful sale, however, depends on much more than just good timing. It requires a deep understanding of your practice’s true value, the motivations of different buyers, and a strategic approach to the entire process. This article will walk you through the key dynamics to help you prepare.
Market Overview
The market for plastic surgery practices is active, and Oklahoma is no exception. Two major factors are creating a favorable environment for practice owners who are considering a sale.
Strong Local Demand
Your location is a significant asset. Oklahoma has a very high “surgical demand index” of 993.751, a measure that confirms strong, consistent patient demand for plastic surgeons in the state. This built-in demand reduces risk for potential buyers. It makes your practice inherently more attractive than one in a less engaged market.
Favorable National Trends
On a larger scale, the cosmetic surgery market is experiencing robust growth. It is projected to grow from $55.68 billion to over $75.20 billion by 2030. This growth attracts sophisticated investors who see the stability and profitability of the specialty. We are also seeing a trend of multi-specialty groups blending plastics, dermatology, and aesthetics to create comprehensive and profitable service hubs. This means more types of buyers are looking for practices like yours.
Key Considerations
A strong market is a great start. Your ability to command a premium price depends on how well your practice is prepared for a buyer’s review. When you prepare to sell, buyers will look closely at a few key areas.
- Financial Performance. Buyers, especially private equity, want to see consistent revenue and clear growth potential. Messy financial records can create doubt. Clean, organized financials that clearly show profitability are a must.
- Operational Strength. How efficient is your practice? A smooth-running operation with a strong patient base and well-defined processes is a valuable asset. This demonstrates that the practice’s success is not solely dependent on you.
- The Value of Goodwill. Goodwill is the value of your practice beyond its physical assets like equipment. It is your reputation, your brand, and your loyal patient list. This is often the most valuable part of a practice, but it is also the most difficult to quantify. Clearly demonstrating your goodwill is a key part of justifying a higher valuation.
Market Activity
Todays market is not just active. It is diverse. Private equity-backed acquisitions in plastic surgery have grown an incredible 4300% in recent decades, but they are not the only buyers at the table. Understanding who might acquire your practice is key, as each type of buyer has very different goals and expectations.
| Buyer Type | What They Look For | Key Consideration for You |
|---|---|---|
| Private Equity Firms | Consistent revenues, growth potential, a strong operational team. | Willing to pay premium valuations, but require a 3-5 year post-sale commitment from you. |
| Other Doctors | A turnkey practice with a smooth transition path. | May offer a lower price due to student debt, but can be a good fit for preserving a legacy. |
| Multi-Specialty Practices | A practice that expands their service lines (e.g., adding plastics to dermatology). | Can create a strong referral network, but you need to understand their long-term vision. |
| Large Group Practices | A practice that can be integrated into their existing model and brand. | Future ownership outcomes can be uncertain. It is important to know how you fit in their structure. |
Sale Process
Selling a practice is a structured process, not a single event. It begins long before the practice is listed. The first step is a thorough valuation to understand what your practice is worth in the current market. This sets a realistic foundation for the entire journey. Next comes the preparation phase, where you organize financials and operations to present the practice in its best light. Then, we confidentially market the practice to a curated list of qualified buyers. Once offers are received and negotiated, the a buyer is chosen and the most intense phase, due diligence, begins. This is where the buyer examines every detail of your practice. Proper preparation here is key to preventing surprises that can derail a sale. The process concludes with legal documentation and the final transfer of ownership.
Valuation
How much is your practice worth? The answer is more complex than a simple rule of thumb. While some may mention a percentage of revenue, sophisticated buyers look much deeper. They focus on a metric called Adjusted EBITDA, which represents the true, ongoing profitability of your practice after normalizing for owner-specific expenses. That profit figure is then multiplied by a number (a multiple) that reflects your specialty, location, growth, and risk. Multiples for strong plastic surgery practices can often range from 5.5x to 7.5x of Adjusted EBITDA or higher.
To arrive at a final number, a combination of methods is often used.
- Industry Multiples. This approach compares your practice to similar ones that have recently sold. It is the most common method used by sophisticated buyers.
- Discounted Cash Flow. This method projects your practice’s future profits and then calculates what they are worth in today’s dollars.
- Asset-Based Valuation. This looks at the hard value of your equipment and facilities, less any debt. It is often a baseline but rarely captures the full value of a profitable practice.
A professional valuation tells the complete story, ensuring you don’t leave money on the table.
Post-Sale Considerations
The transaction is not the end of the story. Your role after the sale is a critical part of the negotiation. If you sell to a private equity firm, you should be prepared for a seller commitment of three to five years, where you continue to work in the practice to ensure a smooth transition. You also need to consider the tax implications. The structure of your deal can dramatically change your net proceeds. Planning for tax efficiency from the very beginning is important. Finally, think about your legacy. A good deal protects not only your financial future but also ensures your staff is cared for and your patients continue to receive excellent care. These are not afterthoughts. They are key components of a successful exit strategy.
Frequently Asked Questions
What makes Oklahoma a favorable market for selling a plastic surgery practice?
Oklahoma has a very high surgical demand index of 993.751, indicating strong and consistent patient demand. This reduces risk for buyers and makes practices in Oklahoma more attractive compared to less engaged markets.
What are the primary buyer types interested in purchasing plastic surgery practices in Oklahoma?
The main buyer types include Private Equity Firms, Other Doctors, Multi-Specialty Practices, and Large Group Practices. Each has different goals and requirements, such as Private Equity seeking consistent revenues and willing to pay premium valuations, while other doctors might prioritize legacy and turnkey transitions.
How is the valuation of a plastic surgery practice determined?
Valuation is primarily based on Adjusted EBITDA multiplied by a multiple ranging from 5.5x to 7.5x or higher. Methods include industry multiples comparison, discounted cash flow projections, and asset-based valuation, with Adjusted EBITDA being critical to reflecting the true profitability of the practice.
What key factors should a plastic surgery practice owner prepare before selling?
Owners should ensure clean and organized financial records showing consistent profitability, demonstrate operational strength with efficient processes and a strong patient base, and clearly articulate the practice’s goodwill including reputation, brand, and loyal patient list to command a premium price.
What are important post-sale considerations for sellers of plastic surgery practices in Oklahoma?
Post-sale, sellers often face commitments such as a 3-5 year involvement when selling to private equity, tax implications that affect net proceeds, and preserving their legacy by ensuring staff care and patient service continuity. Planning these aspects is crucial for a successful exit strategy.