A Practice Owner’s Guide to Medical Aesthetic Practice Valuations

Medical Aesthetic practice valuations aren’t just about determining a price tag; they’re about gaining a strategic understanding of your business’s financial and operational health. It’s the lens through which you can evaluate growth, plan for the future, and ultimately decide if and when the time is right to sell.

Unlike more mature healthcare verticals, aesthetics is in the early innings of consolidation. For medical aesthetic practice owners today, this represents a window of opportunity, but navigating it requires a clear understanding of what drives value and how to strategically prepare for a transaction.

The Components Of A Medical Aesthetic Practice Valuation

Valuation typically begins with EBITDA—Earnings Before Interest, Taxes, Depreciation, and Amortization. This is a clear indicator of your medical aesthetics practice’s profitability and is the foundation upon which most offers are built. It is also the number directly associated with the “multiple” that many people reference. IE – receiving a “6x” quite simply means that they received an offer of 6 times my EBITDA.

But valuation is never just a simple calculation. Numerous qualitative factors influence the multiple a buyer is willing to pay.

Key Factors That Influence Medical Aesthetic Practice Valuations:

• Growth Trajectory: Buyers seek practices with upward momentum and untapped expansion potential.
• Brand Positioning: Strong local brand awareness, patient loyalty, and differentiated market positioning are valuable assets.
• Operational Infrastructure: Practices leveraging modern software systems, streamlined workflows, and automation tools present less operational risk.
• Team Stability: A skilled provider base and experienced staff with low turnover are critical to maintaining continuity post-transaction.
• Provider/Production Diversification: It is critically important that there be multiple sources of revenue within a healthy business, driven by multiple providers. This helps diversify risk for the prospective buyer and will ultimately yield a higher offer value.
• Market Location: High-growth geographic areas with favorable patient demographics typically receive more competitive offers.

For example, a multi-location medical aesthetics group based in a fast-growing metro area, with $2.3 million in revenue and $600,000 in EBITDA, a stable provider team, and strong brand presence, may attract an 6-7x EBITDA multiple. That equates to an enterprise value of $3.6 to $4.2 million, with further upside depending on deal structure and buyer fit.

In contrast, single-provider practices are often seen as riskier, particularly if the owner is essential to production and plans to exit post-transaction. In these cases, some buyers may choose not to pursue a deal at all, while others may shift more of the deal consideration into equity or earnouts rather than upfront cash. The composition of the provider team can significantly impact not just the multiple but also how that value is ultimately delivered.

Understanding Deal Structure: What Enterprise Value Really Means

When MSOs or Private Equity groups present a valuation, it’s essential to look beyond the headline number. The true economics of a deal are revealed in its structure—specifically, how the total enterprise value is allocated.

Most transactions in this space are not 100% cash at close. Instead, enterprise value is divided across several components:

• Cash at Close: The upfront amount you receive at the time of the transaction.
• Equity Rollover: A portion of the proceeds may be reinvested into the buyer’s platform, offering future upside potential.
• Performance-Based Earnouts: Contingent payments tied to achieving certain financial or operational milestones post-close.

Each of these components carries risk and reward, and the optimal mix depends on your personal goals, your business’s growth profile, and the specific buyer.

It’s also important to recognize how buyers, particularly those submitting unsolicited offers, can manipulate the perceived value of a deal. Without experienced representation, practice owners may be enticed by inflated headline numbers that fail to materialize at closing. These offers often come with vague or aggressive terms that shift dramatically during diligence, leading to retrades, delays, or worse—deals falling through.

This is where experienced representation becomes critical. At TUSK, we ensure you’re signing a sane, defensible offer that will uphold its value through to the closing table. Everything in a deal is negotiable—structure, timing, equity, governance—and our team understands which levers to pull based on each buyer’s strategy, past behavior, and current appetite. We work tirelessly with medical aesthetic practice owners to tailor negotiations that protect your downside and maximize both immediate and long-term value.

What Is Your Medical Aesthetics Practice Worth?

The value of your medical aesthetics practice goes beyond a simple equation. It depends on a range of operational, financial, and strategic factors. Understanding these requires more than surface-level metrics or general market commentary. To accurately assess your business, you need insight from an experienced advisor who understands this specific market.

At TUSK, we exclusively provide sell-side advisory services for healthcare practice owners. Our team has advised on hundreds of transactions and has deep relationships with the most active private equity firms and MSOs in the medical aesthetics space.

We help answer the essential questions:

• Is now the right time to sell, or is it better to continue scaling?
• What is my business worth in today’s market?
• How do I position my practice to attract the best buyers and deal terms?
• What portion of that value will actually come to me at close?

Connect with TUSK

TUSK  offers confidential consultations to help practice owners make informed decisions about timing, value, and the optimal transaction path. Our role is to protect your interests, elevate your market positioning, and maximize the outcome of your life’s work.

When it comes to selling your practice, experience, strategy, and execution matter.