Selling Your Med Spa for Top Dollar: Absentee-run Med Spas

Posted By Madilyn Moeller, Tuesday, May 7, 2024

Businesswoman with laptop

By Pacific Reliance

When a buyer is in the market to acquire another med spa, they are seeking to invest in a business, not a job. An absentee-run medical spa is not just a lifestyle game-changer, it’s a business move.

These VIPs of the market offer several key factors that make them attractive to buyers, ultimately commanding a higher value.

First and foremost, absentee medical spas are seen as a low-risk investment. Buyers value businesses that can thrive without being overly dependent on the owner's presence, reducing the uncertainty associated with ownership transitions.

Second, the scalability of an absentee-run med spa is also a major draw. An absentee model allows for expansion and diversification without compromising the business's performance.

Finally, it goes without saying that for owners, this offers greater personal freedom. You can focus on other investments or enjoy more leisure time without compromising the med spa’s performance.

But how do you become an absentee-run med spa? In order to be successfully absentee-run, med spas need to be well-organized and efficient in their operations with skilled and well-trained staff to manage daily operations. Here are some key steps and considerations to make the transition to an absentee model successful.

Standard operating procedures

First, develop comprehensive standard operating procedures (SOPs) for all aspects of your medical spa operations. For example, clearly document procedures for treatments, customer interactions, scheduling, inventory control and financial management. Implement financial controls and oversight mechanisms. Regularly review financial reports, budgets and expenditures to ensure the spa is financially sound.

Consider hiring a qualified financial professional to assist with financial management. An SOP should include ensuring that your medical spa remains in compliance with all relevant laws and regulations. Stay informed about licensing requirements, health and safety standards, and any changes in the regulatory landscape. SOPs will provide a structured framework that will empower your team to operate autonomously.

Assess key performance indicators

Second, define and monitor key performance indicators (KPIs) to assess the performance of your medical spa. Key metrics may include customer satisfaction, revenue targets and operational efficiency. Regularly review these metrics to ensure that the business is meeting its goals.

Leverage technology

Third, invest in technology. Leverage technology to streamline operations and enhance efficiency. Implement a robust spa management software system that can handle scheduling, billing and inventory management. Automation can significantly reduce the manual workload and improve accuracy.

Once you have your SOPs in place, you are set up to monitor your KPIs and you’ve got your technology running smoothly, what’s next?

Build your team

Identify key personnel who can take on leadership roles and manage day-to-day operations effectively. Invest time and resources in recruiting and training. Ensure your team is well-versed in spa procedures, customer service, scheduling and inventory management. Also, regularly train and cross-train your team to handle a variety of tasks. This ensures that multiple team members are proficient in different aspects of the business, reducing reliance on specific individuals. Cross-training also enhances flexibility in staff scheduling. Make sure to delegate responsibilities to your trained team members and clearly define roles and responsibilities to empower your team to make decisions within their areas of expertise. Effective delegation is crucial for reducing the owner's day-to-day involvement.

Once the team has implemented the key steps, develop a robust communication plan to stay informed about the spa's performance when you're not physically present. Implement regular check-ins, utilize that technology you invested in for real-time updates and establish clear lines of communication with your team. Anticipate and plan for contingencies. Develop protocols for handling unexpected situations and ensure that your team is trained to manage emergencies or unforeseen challenges in your absence.

Transition pace

Lastly, when deciding to transition to an absentee model, it should be a gradual transition rather than an abrupt change. Gradual transitions allow for a smoother adjustment for both the owner and the team and, at the same time, provide an opportunity to identify and address any challenges that may arise. In the ever-evolving worlds of health care and wellness, it's not just a strategic business move or an improved lifestyle—it's positioning your practice as a resilient, self-sufficient force that’s ready to weather any storm.

For additional questions regarding your financial statements or for a no-cost valuation of your medical spa, please contact Pacific Reliance.

Pacific Reliance Medical M&A Advisors is a national full-service business brokerage specializing in the marketing and sales of medical-based businesses with annual revenues between $1 million and $20 million. Its specialties include medical spas, urgent care centers, pain management practices and general practices. Its buyers include national strategic buyers, family offices and private equity groups, as well as individual owners and investors.

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