Selling your plastic surgery practice is one of the most significant financial decisions of your career. This guide offers a clear overview of the market in Wisconsin, how to value your practice, and what to expect during the sale process. Success is not accidental. It comes from understanding the market and preparing your practice well before you go to market. This preparation is what separates an average outcome from a premium one.
Market Overview
The market for established plastic surgery practices in Wisconsin is active. Buyers are looking for profitable, well-run clinics with a strong local reputation. However, the landscape has unique characteristics you need to understand.
Buyer Appetite
Interest comes from several places. Health systems and hospitals are often looking to expand their service lines. Other physician groups, both in plastic surgery and in multi-specialty models, seek growth through acquisition. We also see private equity-backed groups entering the Wisconsin market. Each buyer type has different goals and will value your practice differently.
Wisconsin-Specific Factors
The state’s Corporate Practice of Medicine (CPOM) laws dictate who can own a medical practice, which shapes the types of legal structures for a sale. Furthermore, unlike primary care, plastic surgery patients are often transactional. This can make it harder to prove a stable, recurring revenue stream to a potential buyer unless you have the right data.
Key Considerations
Beyond the market, your practice has unique features that determine its attractiveness. We find the most important factor for plastic surgeons is differentiating your personal reputation from the practice’s brand. If patients come for “you” specifically, a buyer will see that as high risk. The goal is to build a practice that has value independent of any single surgeon. This is “practice goodwill.” It is built through strong marketing systems, a diverse referral base, and efficient operations. This is also why most buyers will require you to stay on for a transition period. They need your help transferring relationships and ensuring a smooth handoff for patients and staff.
Market Activity
Timing your sale is important. The current market shows steady interest from different kinds of buyers, each with their own priorities. Knowing who you’re targeting is key.
- Hospitals and Health Systems. These buyers are often focused on strategic fit. They want to know how your practice fills a gap in their community services. They will look closely at your referral patterns and payor contracts.
- Private Equity-Backed Groups. These buyers are financially driven. They focus on profitability, specifically Adjusted EBITDA. They are looking for well-managed practices that they can grow. A clean financial history is critical for them.
- Other Physician Groups. A smaller practice might want to merge to gain efficiency, while a larger group may be expanding its footprint. For them, clinic culture and staff retention are often major points of focus.
Sale Process
Many owners think the selling process starts when you list the practice. In reality, it starts long before that. Preparing for a sale should begin one to two years before you want to close the deal. The first step is getting your house in order by cleaning up financial records and organizing key documents. The next step is assembling your advisory team, including an M&A advisor, legal counsel, and an accountant. They help you confidentially market the practice, create competition among qualified buyers, and navigate the complexities of negotiation and due diligence. This structured process protects you from common pitfalls and ensures you are negotiating from a position of strength, not reacting to a buyer’s demands.
A comprehensive valuation is the foundation of a successful practice transition strategy.
Valuation
Valuing a plastic surgery practice is not about a simple rule of thumb. Sophisticated buyers use a formula based on your profitability. The starting point is your Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This is your net income plus any owner-specific or one-time expenses added back in. This Adjusted EBITDA is then multiplied by a number, the “multiple,” to determine the practice’s enterprise value. Your multiple is not fixed. It changes based on several risk and growth factors.
| Factor | Lower Multiple | Higher Multiple |
|---|---|---|
| Provider Model | Owner is the only provider | Multiple providers, associate-driven |
| Revenue Source | Relies on single procedure type | Mix of surgical and cosmetic revenue |
| Marketing | Depends on owner reputation | Strong practice brand and marketing system |
| Profitability | EBITDA under $500K | EBITDA over $1M |
This is why a professional valuation is so important. It uncovers your true profitability and tells the story that justifies the highest possible multiple.
Post-Sale Considerations
The work is not over once the deal closes. Your sale agreement will clearly define your role during the transition, which could be anywhere from a few months to a couple of years. Your obligations are to help transfer patient relationships and train the new owner or team on your processes. You also have a responsibility to manage post-closing logistics. This includes formally notifying patients, your malpractice carrier, and state and federal agencies about the change in ownership. How the deal is structured also has major tax consequences. Planning for these post-sale realities from the very beginning is the best way to protect your legacy, your staff, and your financial future.
Not sure if selling is right for you?
Frequently Asked Questions
What is the current market like for selling a plastic surgery practice in Wisconsin?
The market for established plastic surgery practices in Wisconsin is active, with buyers including health systems, hospitals, physician groups, and private equity-backed entities seeking profitable, well-run clinics with a strong local reputation.
How is a plastic surgery practice typically valued in Wisconsin?
A plastic surgery practice is valued based on its Adjusted EBITDA (net income plus owner-specific or one-time expenses added back). This figure is multiplied by a variable multiple, influenced by factors such as provider model, revenue diversity, marketing strength, and profitability.
What specific Wisconsin laws affect the sale of a plastic surgery practice?
Wisconsin’s Corporate Practice of Medicine (CPOM) laws dictate who can own a medical practice, which affects the legal structures available for the sale of a plastic surgery practice.
Why is it important to differentiate your personal reputation from the practice brand before selling?
Buyers see a practice that relies heavily on the personal reputation of the surgeon as high risk. Building “practice goodwill” through a strong brand, marketing systems, diverse referrals, and efficient operations makes the practice more valuable and less dependent on any single surgeon.
What should I expect during the post-sale transition period after selling my practice?
After the sale, you will usually be required to stay on for a transition period to help transfer patient relationships and train the new owner or team. You’ll also need to handle post-closing logistics such as notifying patients, malpractice carriers, and regulatory agencies about the ownership change, and plan for any tax consequences.