The aesthetic industry is attracting investors, private equity firms, and entrepreneurs. Bill Walker, founder and CEO of Aesthetic Brokers, shares what makes a practice appealing and how owners can prepare for acquisition.
The Birth of Aesthetic Brokers
With experience in private equity-backed healthcare acquisitions, Bill Walker identified a gap in the industry: owners lacked transaction experience, while investors had extensive data.
“I spent precious time in the acquisition mode going to massive scale on a DSO platform. Learned a lot about what’s important to private equity funds that want to invest in healthcare practices,” he said.
Walker founded Aesthetic Brokers in 2023 to provide expert representation for owners considering a sale.
What Attracts Investors?
Investors prefer scalable practices with strong systems that don’t depend entirely on the owner.
“These savvy investors want to see redundant replicable program processes. They want to know that it’s not just hinging on one person who shows up every day and makes magic happen in the back in the kitchen, and then out comes a cake,” Walker explained.
He also warned against over-reliance on a single provider: “Never let yourself be overly exposed in any modality or provider.”
Who is Buying Aesthetic Practices?
Walker categorizes buyers into three groups:
- Private Equity Firms – Focused on scaling businesses.
- Family Offices & Private Wealth Funds – High-net-worth investors in aesthetics.
- Entrepreneurs by Acquisition – Individuals raising capital to buy and expand businesses.
“I still see doctors come to us and say, Bill, can you help me find a med spa in my city that I’d like to buy?” he shared.
When to Sell?
Walker advises against waiting too long.
“If you go early in the cycle, you’re getting compounding multiples,” he said. “If you pick a smart partner that’s disciplined, that knows how to provide operational support for excellence…you’re way better off in the earlier stages of a life cycle.”
Given the rapid consolidation, early sellers often see more significant returns.
Preparing for Acquisition
Due diligence is crucial in preparing for a sale and evaluating buyers.
“We provide an executive summary and a prospectus on all of the buyers that we bring to the table, and we do our homework on the buyers so that you don’t have to,” Walker stated.
He stressed financial awareness: “You’ve got to inspect what you expect. If you expect to do well in your practice, you’ve got to inspect it. So you’ve got to know your numbers.”
Why Work with a Broker?
Selling a practice is complex, and Walker advises against doing it alone.
“Why would you ever walk into a boardroom and do your deal? Don’t do it,” he warned. “Seek out a trusted advisor that you know has your best interests at heart and is aligned with you and your goals.”
He highlighted the financial benefits: “For the nominal fees that you’re going to pay for a quality broker, our clients see enormously outsized returns, to the tune of…easily over 30%.”
The Future of Aesthetic Investments
Walker predicts continued investment in technology and operational support.
“You’re going to see more investment in the technologies that will drive better patient results,” he noted.
He urged owners to plan their exit strategy now:
“The most important theme I would extend to the thousands of people in your audience is to have the end state in mind. If you’re 55, if you’re 45, if you’re 35, have that end state in mind now,” said Walker of Aesthetic Brokers.”
Takeaway
The aesthetic industry is evolving, and those who prepare now will be best positioned for future success. Bill Walker said, “What matters to the client matters to me. And if I’m interested, my team’s fascinated by it.”
For those considering a sale or wanting to understand their practice’s value, seeking expert advice can make all the difference.
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