The aesthetics industry has seen a significant boom, with medical spas, dermatology clinics, and plastic surgery centers becoming prime investment opportunities for private equity firms. However, as Bill Walker, founder of Aesthetic Brokers, notes, many practitioners are underserved in handling the sale of their practices.
“These were people who spent their entire professional lives caring for others,” Walker explains. “And I felt like they were, in many cases, severely underserved in the single most important business transaction of their professional life.”
Understanding the Buy-Side in Private Equity
Walker’s private equity-backed healthcare services background has given him deep insight into the mergers and acquisitions (M&A) process. Previously working on the buy-side, he was responsible for evaluating practices financially and operationally, determining their value, and presenting investment opportunities to a board.
“On the buy side, when a doctor would have a practice, and they come in to have a conversation, I would be the one that is ultimately doing the valuation on their practice from a financial standpoint, looking at their operational structure, the strengths of their culture, and putting some sort of a dollar amount on that,” Walker explains. “Then you take it to a board of investors, get approval to invest, and cut that check and invest it in that doctor and their practice.”
This experience gave him a strong understanding of the investor’s perspective and the challenges practice owners face. This led to the founding of Aesthetic Brokers, a firm dedicated to helping aesthetic practice owners navigate the complexities of selling their businesses.
The Birth of Aesthetic Brokers
Aesthetic Brokers focuses exclusively on medical aesthetics, including plastic surgery centers, dermatology practices, and medical spas. They aim to help businesses successfully navigate transactions and receive the best possible deal.
“I’ve always believed in focusing on one thing and doing it better than anybody else. And by being laser-focused and looking through the lens of representing aesthetic-related practices, we are better serving our clients.
By specializing, Aesthetic Brokers has developed a deep understanding of market trends, investor interests, and the nuances of valuation within this niche. Their expertise allows them to create tailored strategies that maximize client value.
Do You Need a Broker?
A common question among practice owners is whether they need a broker to sell their practice. Walker’s response is clear: “Everybody needs a broker.”
However, not every practice is in the correct position to sell. “Look, if you’re a practice that is a million dollars of revenue and single-digit margins, and at the end of the day, you’re taking home $60,000, $70,000, $80,000, right? Like, you do not need a broker. You need to get healthy so that you can do a transaction down the road and maximize the returns on what you’ve put into your practice.”
For practices financially prepared to enter the market, a broker is invaluable. Aesthetic Brokers assists clients in preparing their businesses, attracting competitive bids, and securing the best deal possible.
The Competitive Advantage of Aesthetic Brokers
While other brokerage firms exist in the medical aesthetics, Walker believes few specialize in the way Aesthetic Brokers does. “In our space, are many that do it well and are focused as a primary effort? No, there are not that many out there. It takes a lot of energy, expertise, and resources to devote to any one thing.”
Beyond facilitating transactions, Aesthetic Brokers also offers consulting services to improve key performance indicators (KPIs) and strengthen businesses before selling. “For us, those consulting-type functions really focus around the idea of listening to our clients, listening to their needs and their wants, and then looking at the numbers and saying, ‘Okay, you have this goal of executing a transaction, and maybe we need to give you advice on a specific endeavor inside of your practice to help make it stronger so that you are ready to go to market,'” says Walker.
Takeaway
The medical aesthetics industry offers significant opportunities for practice owners looking to sell, but navigating the process requires expertise and strategy. Under Bill Walker’s leadership, Aesthetic Brokers aims to fill this gap by providing a dedicated, knowledgeable representation of aesthetic practices.
With a background in private equity and an understanding of buyers and sellers, Walker and his team are well-equipped to help practice owners achieve the best outcomes. As the industry grows, having the right broker can make all the difference in securing a successful deal.
Listen to the full episode on Spotify: Aesthetics Appeal
