Selling Your Aesthetic Practice

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The Next Chapter: Now or Later?

Over the past few decades, you, the provider, have accomplished many incredible things. You have treated hundreds to thousands of patients and helped them breathe new life into their visions. They have left your office happier, healthier, and with newfound inspiration.

However, we understand that every journey has its seasons. At some point in your career, you contemplate the next chapter, a time to transition to new endeavors. With this understanding, it is essential to recognize the signs indicating that it might be time to consider an exit strategy for your aesthetic practice.

Female healthcare provider in white coat reviewing patient chart on clipboard during consultation with patient

Signs That It’s Time To Sell Your Aesthetic Practice

Your dedication to your patients and team has been unwavering. Yet, some signs may indicate the need for a strategic transition:
  • After accumulating enough savings, you are ready to hang up your coat and transition into a life of leisure and enjoyment
  • You want to spend more quality time with your family, relocate, or travel more
  • You are stressed by all the hassles of owning your practice and are looking into other options
  • Staying open is no longer in your best financial interest (the cost of providing medical services is getting too high)
  • You are looking to develop an exit plan for the next 3, 5, or 10 years as a precaution against illness or other unexpected issues
  • You are physically unable to continue working

Exit Strategies And Planning For The Future

Now, when it comes to figuring out your exit plan, you have many options to choose from:

Bringing On An Associate To Sell To In The Future

Cultivating a successor from within is one of the most thoughtful transition strategies. By bringing on an associate physician to eventually sell to them, you create a seamless pathway that protects your most valuable asset — the organization you have built over years of dedication. This approach allows for a gradual transition where the incoming doctor can learn your methods, build relationships with your patient base, and understand the operational nuances that make your successful practice unique. Many practitioners find this plan particularly satisfying as it ensures their legacy continues through someone they have personally mentored.

 

Selling your practice directly to another physician offers a straightforward transition that often preserves your established culture and clinical approach. This strategy typically involves determining the fair market value of your organization, which includes your practice’s tangible assets, patient base, and revenue streams.

While potentially less profitable than corporate buyouts, doctor-to-doctor sales often prioritize care continuity and professional legacy.

 

Merging your aesthetic practice with another is a strategic alternative that can maximize financial gains while minimizing transition complications. When your office joins similar practices, it creates economies of scale that benefit both entities through shared administrative costs, expanded service offerings, and combined marketing efforts. This approach often results in fair compensation for your assets, including medical equipment that might otherwise be difficult to value and liquidate independently.

 

Engaging with private equity or venture capital groups is an increasingly popular exit strategy that can deliver substantial financial returns. These interested parties often value aesthetic businesses at higher multiples than individual physicians might offer, recognizing the growth potential in well-established organizations with strong patient retention.

 

For some practitioners, a complete exit through outright retirement presents the cleanest transition from professional life. This approach involves practice closure with a defined end date and winding down operations according to legal and ethical requirements.

Bringing On An Associate To Sell To In The Future

Cultivating a successor from within is one of the most thoughtful transition strategies. By bringing on an associate physician to eventually sell to them, you create a seamless pathway that protects your most valuable asset — the organization you have built over years of dedication. This approach allows for a gradual transition where the incoming doctor can learn your methods, build relationships with your patient base, and understand the operational nuances that make your successful practice unique. Many practitioners find this plan particularly satisfying as it ensures their legacy continues through someone they have personally mentored.

 

Selling your practice directly to another physician offers a straightforward transition that often preserves your established culture and clinical approach. This strategy typically involves determining the fair market value of your organization, which includes your practice’s tangible assets, patient base, and revenue streams.

While potentially less profitable than corporate buyouts, doctor-to-doctor sales often prioritize care continuity and professional legacy.

 

Merging your aesthetic practice with another is a strategic alternative that can maximize financial gains while minimizing transition complications. When your office joins similar practices, it creates economies of scale that benefit both entities through shared administrative costs, expanded service offerings, and combined marketing efforts. This approach often results in fair compensation for your assets, including medical equipment that might otherwise be difficult to value and liquidate independently.

Engaging with private equity or venture capital groups is an increasingly popular exit strategy that can deliver substantial financial returns. These interested parties often value aesthetic businesses at higher multiples than individual physicians might offer, recognizing the growth potential in well-established organizations with strong patient retention.

For some practitioners, a complete exit through outright retirement presents the cleanest transition from professional life. This approach involves practice closure with a defined end date and winding down operations according to legal and ethical requirements.

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Evaluation Vs. Valuation

During your career, you have acquired many assets and generated hundreds of thousands, if not millions, of dollars in sales. These resources have a price, but how do you determine the accurate number?
  • Evaluation is a comprehensive analysis of the organization's policies, procedures, protocols, human resources, objectives, and current and future business plans.
  • Valuation is the financial worth of your business, which is contingent on past and current earnings, tangible and intangible assets, and other factors. Our professional consultants use advanced methods, such as EBITDA (earnings before interest, taxes, depreciation, and amortization), to arrive at fair value and maximize your gains from future deals.

Client Stories

Five-star rating
“I chose Jay and Shorr Solutions because they offer exactly what I needed when starting a practice: flexibility, real-world experience, and continued support long-term. They can be as involved as you want during the startup process, and they don’t disappear once you.
Nicholas Clark, MD
Facial Plastic Surgeon
Five-star rating
“Our primary care medical practice has been working with the Shorr team for about 9 months. What valuable practice managers. Each member of the team brings an array of business management skills that have been invaluable to the structure, growth, planning, marketing.
Joseph Botta, MD
Board Certified Internal Medicine and Geriatrics Physician
Five-star rating
“I am a physician in private practice for many years and serve as the medical director for a small group of sub-specialty physicians. I learned about Shorr Solutions through our practice attorney and have worked with Jay Shorr and his team over the last year and have found them.
Andrew Engler, MD
Medical Director & Allergist
Five-star rating
“I have been a client of Shorr company for a year. Amazing service in all medical office aspects including staff training, office procedures, manuals , job descriptions etc. Shorr staff are very professional same time fun and very easy to work with. They offered our practice several services.
Lilian Ghobrial
Owner
Five-star rating
Shorr Solutions has been pivotal in the growth & success of our practice. Starting from a very small practice with very little business experience, Jay Shorr and his team have guided us & helped us grow into a profitable business. Many difficult conversations have been had & lessons.
Rachel Suliburk RN, BSN
Aesthetic Injector, The Aesthetic Atelier, Houston, TX

How We Can Help You

Once we have determined what your practice’s value is, our team will work with you in the following way:
  • Create an exit strategy, including estate planning, to protect all your assets before retirement, disability, or untimely passing.
  • Perform an evaluation and valuation of your practice to determine areas of improvement/opportunities and your practice’s true worth.
  • Prepare your business for sale by helping you enhance your marketing performance and ROI, patient lead conversions, current processes, profit margin, information systems, and more.
  • Make your practice attractive to potential buyers through an expertly crafted prospectus.
  • Ensure you get the most money from the empire you’ve built through strategic and knowledgeable negotiation tactics.
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Frequently Asked Questions

What is an exit strategy, and why
do I need one?

An exit strategy is a plan that you put into place (ideally early on) so that you are well prepared if you want to sell your practice due to specific circumstances, such as the following:

  • Desire to relocate, travel, or transition into another career
  • Retirement
  • Illness or disability
  • Untimely passing (death)
  • Natural disasters (hurricanes, earthquakes, fires, floods, etc.)
  • Sudden and unexpected catastrophe (e.g. pandemic)
We highly recommend having an exit strategy in place. There is no telling when these events will happen. Due to the COVID pandemic, we saw providers wanting to retire earlier than expected or sell their practices and work in other spheres.
Our team will coach you in defining, planning, and refining your action steps towards exiting your business. There will be no guesswork, and all your bases will be covered.
What is an exit strategy, and why do I need one?

How much is my
aesthetic practice worth?

How much is my aesthetic practice worth?

This depends on the point at which you want to sell your practice and the different stages of your business. We will review your profit and loss (P&L) statements quarter by quarter and year by year. Ultimately, you will sell your practice based on a multiple of your gross or net profits, future potential/earnings, the value of your capital equipment and/or tangible assets, the goodwill of your practice (patient base), and your inventory.
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