Valuing a Medical Spa
As of 2024, the medical spa industry is worth close to $37 million. Why? Medical spas use non-invasive procedures that enhance beauty, skincare, and health. This aids in relaxation and improved confidence. Before buying or selling a medical spa, consider obtaining a medical spa valuation. Doing so will help you understand the fair market value of a medical spa and what drives the value. This article discusses key factors a business appraiser considers when valuing a medical spa.
Whether you are buying, selling, or growing a medical spa, many factors impact value. To get the best price out of a medical spa, a professional medical spa valuation will set you off on the right track. This article will give you a general idea of how to value a medical spa. However, getting a professional business valuation is worth the investment as each business is unique.
Peak Business Valuation is a professional business appraiser and has experience valuing medical spas all over the nation. With a medical spa valuation, you can gain insights for better decision-making. Learn more by scheduling a free consultation with Peak Business Valuation below!
Market Multiples for a Medical Spa
When valuing a medical spa, business appraisers determine its fair market value. A common tool is market multiples, which are financial performance indicators. They help business appraisers understand the general ratios medical spas transact at. At Peak, we use various market multiples to calculate a medical spa’s value. See more at Valuation Multiples for a Medical Spa.
- SDE Multiple Average Range: 2.72x – 3.25x
- EBITDA Multiple Average Range: 3.53x – 3.99x
- REV Multiple Average Range: 0.53x – 0.98x
Disclaimer: These multiples are for educational purposes only. The information provided does not constitute valuation advice and do not represent the valuation opinion of Peak Business Valuation or its professionals. Instead, we recommend seeking the guidance of a qualified business valuation professional for advice on any matters covered in this article.
How to Value a Medical Spa
When determining how to value a medical spa, Peak often uses the market approach and the income approach. Either approach provides insight into the fair market value of a medical spa. For a variety of reasons, a business appraiser may choose to use a mix of approaches depending on the purpose of the medical spa valuation. Read How to Value a Medical Spa for a deeper understanding.
Peak Business Valuation works with medical spas across the country. We are happy to help you value a medical spa so you can buy, expand, or sell with clarity and confidence. Furthermore, we can answer any questions on valuing a medical spa. Schedule a free consultation below to get started!
Key Success Factors
There are several key factors or value drivers taken into account when valuing a medical spa. Think of key success factors as points on a checklist to help you build value. Peak Business Valuation assesses key factors and compares your medical spa to similar businesses in the industry. When you know the strengths and weaknesses in your business’s key success factors, you can buy, expand, or sell your medical spa with confidence. For more information, see Value Drivers for a Medical Spa.
Regulatory Compliance:
First, as a medically-based treatment center, medical spas need to have strict regulations. Avoid legal issues and fines by following local, state, and federal regulations. Medical spas can not run without the correct licenses, certifications, and safety protocols. Most importantly, strong regulation measures bring peace of mind to clients. While valuing a medical spa, Peak Business Valuation identifies and reports necessary regulations.
Skilled Staff:
Next, hire skilled, professional, and qualified staff. This will increase the value of any medical spa. When valuing a medical spa, business appraisers will assess the quality of staff. This is to see whether they are building or lessening value. Clients are likely to trust licensed staff that are well-trained and experienced. Consider hiring staff with special training in procedures offered at the medical spa. Frequent staff training and hiring a good management team are also key. Encourage mentoring and provide a healthy work environment. A high-quality team ensures a high-quality and high-value business.
Service Offerings:
Additionally, offering a variety of quality services for clients will boost value. Offering diverse and popular treatments is important in a fast-changing and trendy industry. Consider offering services like Botox, micro-needling, laser treatments, and body sculpting. When Peak Business Valuation is valuing a medical spa, we analyze the services offered. We then identify how they are affecting the business and its growth. Discover what the value of your services are by contacting Peak for a free consultation.
Technology and Equipment:
Likewise, any medical spa is as good as its equipment. A medical spa’s value is typically higher with advanced technology and state-of-the-art equipment. High-quality tools allow you to perform advanced services. They also guarantee the safety of clients and staff. Ask Peak how we assess medical spa equipment when valuing a medical spa.
Still curious about a machinery and equipment appraisal? Check out What is a Machinery and Equipment Appraisal?
Client Loyalty and Retention:
Next, a strong focus on client loyalty and retention strengthens rapport and value. Consider focusing on daily customer satisfaction within a medical spa. Solid relationships with clients can promote recurring revenue and customer retention. Not to mention, happy clients tend to refer friends, getting you more exposure. Making use of Google My Business reviews can also aid in visibility. When valuing a medical spa, a business appraiser at peak will assess client loyalty and retention. They will then compare your medical spa to similar companies and industry averages.
Location:
Next, choosing the most suitable location for a medical spa can make or break its value in the long run. When valuing a medical spa, Peak assesses the location of the medical spa. Placing your spa in an accessible and visible area can increase customer visibility. Consider locating in high-traffic areas or affluent neighborhoods to attract more clients. Shopping districts or central business districts are great options for medical spas.
Online Presence and Marketing:
Finally, building a strong online presence markets your business to a wider audience. Try taking advantage of SEO, Google Ads, and positive reviews. These tools can boost a medical spa’s visibility. Build a website and open a Google My Business page to inform clients of your business. Create social media profiles to stand out and generate leads. While valuing a medical spa, Peak will assess its online presence and marketing efforts. See The Value of SEO for a Business for more insights.
Summary
In conclusion, there are many important things to consider when valuing a medical spa. The information above is applicable for buying, selling, or growing a medical spa. This article discusses several key factors for a medical spa and an overview of important market multiples for a medical spa. Securing a medical spa valuation can identify many opportunities. It can also help you maximize the value of a medical spa and spot weaknesses. Foremost, a medical spa valuation can help iron out kinks before making big business decisions.
Peak Business Valuation values medical spas across the country. Develop clarity and confidence by obtaining a medical spa valuation with us today. We are happy to answer any questions about valuing a medical spa. Reach out by scheduling a free consultation below.
