Medspa Deal- Any current owners?

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September 21, 2023

by a searcher from Washington University in St. Louis in Chicago, IL, USA

I'm curious if anyone has closed a MedSpa deal over the last two months or owns one. I would love to discuss a deal I’m working on.

Great facility, new equipment, 5-star reviews in a very affluent area with a median income of 170k+. The owner is an injector and is looking to retire. Her aestheticians bring 70% of revenue. The owner is not very sophisticated. Does 389k SDE and about 800k in top line.

I got QofE done, and things checked out; I love her setup, clientele, location, etc. I could free up another 30-40k in wasteful processes she’s been spending on that she sees no returns on. I.e., spends 24k/yr for website maintenance, which is ridiculous.

I’m curious about success stories and heartburns taking on a small deal like that. Anyone?

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Reply by a searcher
from Washington University in St. Louis in Chicago, IL, USA
They accepted 2.5x SDE. 100k seller at 5% on standby. But there are risks as the owner is the only injector and she is willing to stay 5 months for transition and bring a new injector on right away. That’s the risk.

if I adjust out SDE to Adj Ebitda, I went by conservative number of 210k. Which brings ebitda to 4.5x. Which gets a bit higher
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Reply by a searcher
in Indianapolis, IN, USA
^redacted‌ just did a great podcast on this a few weeks ago. Great insight on that space! Here's the link https://www.youtube.com/watch?v=w6agr3VBOoE
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