Quick Answer: Yes, private equity is still buying med spas, with much of the activity coming from groups adding smaller practices. The American Med Spa Association (AmSpa) found that only 3% of med spas were owned by private equity firms as of its 2024 industry report, and a May 2026 deal review published by AmSpa puts independently owned med spas at more than 90%. For most owners, the real question is which kind of buyer fits your goals.
Is private equity still buying med spas?
It is. A review of 2025 deal activity by Tommy Newton of Xite, published by AmSpa in May 2026, described a market with fewer headline “mega deals” but strong add-on activity. PE-backed platforms and management services organizations (MSOs) were especially active in large, fast-growing states such as Florida, Texas, and California.
The room for that activity comes from how fragmented the industry still is. AmSpa’s 2024 State of the Industry report counted 10,488 med spas as of 2023, with 81% of them operating a single location and just 3% owned by private equity firms. An industry made up of thousands of small independents is what a buy-and-build strategy needs.
AmSpa also describes the medical aesthetics industry as having passed $17 billion and growing by more than $1 billion a year. Those are industry-wide figures. They say nothing about what any single practice is worth.
Why do private equity firms want your med spa?
Bill Walker, founder of Aesthetic Brokers, puts part of it down to maturity. “It took roughly 20 years plus of pioneering efforts of the forefathers and foremothers of the aesthetic space to build a reputable, credible industry,” he says. Investors now look at aesthetics as a sector with a track record.
The payment model is the second draw. Med spa revenue is largely cash-pay, so there’s little exposure to insurance reimbursement cuts. Walker calls that fee-for-service structure “incredibly powerful.” The 2025 deal review makes the same point about repeat business: membership programs, subscription skincare, and repeat injectable visits create what it calls annuity-like revenue, which lowers the risk buyers see.
Scale is the third reason. The same review reports that smaller med spas have generally traded at lower EBITDA multiples than large regional platforms. A PE firm that buys smaller practices and combines them into a bigger group is betting on that gap. For how that plays out from first contact to closing, see how private equity buys med spas.
Platform or add-on: which buyer is looking at you?
A platform is the first, larger acquisition a PE firm makes in a sector. It’s usually a multi-location group with management already in place, and it becomes the base the firm builds on.
An add-on is a smaller practice that the platform buys afterward. If you run a single location, an approach from private equity is likely to come from a platform shopping for add-ons, which is where the 2025 deal review saw particularly strong activity.
That matters because add-on terms depend on how your practice fits the buyer’s existing locations and plans. The same practice can draw quite different offers from two platforms, so hearing from one buyer tells you little about the market for your practice.
What changes for you after a private equity deal?
A sale to a PE-backed group is rarely a single check. The 2025 deal review describes typical structures running from about 60% cash at close with 40% rollover equity, up to 80% cash with 20% rollover. Holdbacks and earnouts stayed common, particularly where future performance, a provider transition, or growth after closing was central to the deal.
Rollover equity means you keep a stake in the larger group. Walker notes that selling a portion of your practice and rolling the rest into a platform can create more than one payout over your career if the group grows and is sold again. That second payout isn’t guaranteed. Its value depends on how the platform performs and when it exits, and you won’t control either.
Your role usually changes too. A deal may ask the owner or lead injector to stay for a set period, and an earnout can tie part of the price to results after closing. Read those terms as closely as the headline number.
What should you ask a private equity buyer?
A first call with a PE-backed buyer is a chance to learn how they think, not only what they’ll pay. Questions worth asking early:
- When does the fund plan to sell the platform? PE firms buy with an eventual exit in mind, and that timing shapes when any rollover stake can turn into cash.
- How is the rollover equity valued, and what rights come with it? Ask whether your stake sits at the same level as the fund’s investment or behind it.
- What happens to your role and pay after closing? Owners often clarify the expected length of their commitment and their compensation before a letter of intent is signed.
- How are earnout targets defined? A target tied to revenue behaves differently from one tied to EBITDA, especially once the buyer controls costs and pricing.
- What happens to your team and your brand? Some platforms keep local names and staff, while others rebrand and centralize.
The answers vary from buyer to buyer, and they often matter as much as the headline price. A sell-side advisor can help you compare them across several offers.
What do owners get wrong before talking to private equity?
Walker sees two patterns. The first is leaving succession planning too late. Owners who don’t plan ahead, he warns, lose control of the story, and buyers end up shaping it for them.
The second is weak financial visibility. Walker points owners to monthly financial reporting and close tracking of cost of goods sold. He also cautions against holding marketing spend flat as the practice grows, and he favors outside agencies that keep up with the industry over hiring an internal team.
Compliance is the issue that tends to surface in diligence. The 2025 deal review notes that compliance documentation and clarity about the operating model drew more scrutiny in 2025. Ownership rules for med spas, including corporate practice of medicine restrictions, vary by state, so a structure that works in one state may not work in another. Our state-by-state guide covers the differences.
Should you sell your med spa to private equity?
It depends on your goals and on how much of the practice runs on you. Some owners want a full exit. Others want capital and support to grow while keeping a stake. Neither path suits everyone.
Before you talk to a buyer, it helps to understand:
- How a med spa is valued on adjusted earnings
- What investors look for before they make an offer
- How PE deals are structured, including rollover and earnouts
- Whether private equity is the right buyer for you at all
If you’re weighing an offer or expect one, you can talk with a sell-side advisor about selling your med spa. Aesthetic Brokers represents owners only, never buyers.
This article is for general informational purposes only and is not financial, legal, or tax advice. Deal terms, valuations, and regulatory requirements vary by practice and by state, so speak with qualified advisors about your own situation.