By Adam Reinebach, Chief Executive Officer, American Med Spa Association (AmSpa)

The medspa M&A market remains active and well-capitalized as it continues to move from a “land grab” phase to a more disciplined and methodical baseline. Private equity interest is robust, but buyers are taking longer to conduct diligence, while the risks that matter most—provider talent, operational performance, and alignment with key staff—receive far more attention than they did even a few years ago.

“Interest in the space remains very strong,” said Annie Robertson Hockey, President of Skytale, a leading investment bank and management consulting firm in medical aesthetics. “You still have the classic roll-ups, but we’re also seeing new buyers enter the space and platforms recapitalize at attractive valuations. That’s a sign the asset class is maturing.”

How those changes impact medspas considering the sale of their business and/or looking for capital is one of the main questions Skytale will address during AmSpa’s one-day track on M&A on Thursday, April 9, at the upcoming Medical Spa Show in Las Vegas.  

A More Measured Tone

One of the important lessons from the past couple years is that store expansion across the industry may have outpaced underlying market growth. Many operators aggressively opened new locations in recent years, assuming demand would continue to accelerate.

“A defining dynamic of 2025 is that store openings outpaced market growth,” Hockey said. “In many cases, same-store sales have been flat or even down. That doesn’t mean buyers have lost interest—it just means they’re being more thoughtful about where they’re investing.”

That shift has had a direct impact on the transaction process. Deals that once moved quickly are now taking significantly longer as buyers evaluate financial performance and operational stability in greater detail.

“Buyers are still enthusiastic about the space,” Hockey explained. “But many are taking more time on diligence and looking much harder at the numbers.”

Quality-of-earnings reviews have become more detailed, and buyers increasingly track performance throughout the closing process. When transactions stretch out over many months, acquirers want real-time confirmation that revenue trends are holding steady.  

Provider Power

Another issue receiving heightened scrutiny is provider talent. In a service-driven industry like aesthetics, the people delivering treatments are often the most important asset a practice has.

“Providers are the backbone of this industry, and there is a shortage of experienced talent,” Hockey said. “If a business loses one or two of its top injectors during diligence, that can immediately change how a buyer thinks about valuation.”

As a result, compensation structures and alignment with key providers are becoming central to deal negotiations. Buyers are increasingly focused on ensuring that top performers remain engaged after a transaction closes.

Strong Multiples

Despite those challenges, medspa valuations have remained healthy, especially for businesses that demonstrate strong leadership and consistent growth. But the broader industry environment has changed in ways that buyers are paying close attention to.

Taken together, these dynamics point to a market that remains highly active. Investors still believe strongly in the long-term growth of medical aesthetics. The difference now is that buyers are demanding stronger fundamentals, deeper talent benches, and better alignment between operators and providers before they commit capital.