If you are a plastic surgery practice owner, staying abreast of the evolving industry landscape is crucial. The trend towards consolidation is particularly significant, with increasing interest from private equity firms and larger healthcare organizations recognizing the value in practices like yours. Their goal is to enhance and expand service offerings to meet the growing demand for both cosmetic and reconstructive procedures.
Market Trends
Private equity investment in plastic surgery has seen a notable rise in recent years. Platforms such as Prime Plastic Surgery and Ascend Plastic Surgery Partners underscore this trend, with 10 active, PE-backed plastic surgery platforms emerging by 2023. Despite this rapid consolidation, the market remains highly fragmented, indicating significant opportunities for further consolidation.
Benefits of Consolidation
Financial Gain and Valuation: Selling your plastic surgery practice to a larger entity can yield substantial financial benefits. Acquisitions often result in higher valuations than independent sales, making it an attractive option for retirement planning or reinvestment in new ventures. Early-stage consolidation can drive competitive valuations, with some buyers offering founder stock opportunities for long-term growth and multiple exit strategies.
Operational Efficiency: Joining a larger healthcare organization provides access to advanced technologies and streamlined administrative processes. This facilitates improved negotiations with suppliers and payors, resulting in cost savings, increased reimbursement, and enhanced service delivery. These efficiencies benefit both you and your patients, ensuring smoother operations and superior outcomes.
Comprehensive Support Services: Imagine having centralized support services at your disposal—robust human resources, efficient billing systems, rigorous quality assurance, and effective marketing strategies. These resources, typically available in larger entities, alleviate administrative burdens, allowing you to focus on patient care and clinical excellence.
Professional and Personal Fulfillment: Many practice owners enter the field to make a meaningful impact, not to manage the complexities of business operations alone. Joining a larger entity offers relief from financial responsibilities and administrative challenges, fostering professional growth, collaboration with peers, and renewed dedication to patient care. It’s about being part of a supportive community that encourages innovation and personal satisfaction.
Case Study
Consider Dr. Sarah’s experience. She partnered her successful plastic surgery practice with a national firm backed by private equity. This strategic partnership allowed Dr. Sarah to leverage the firm’s resources while retaining operational control and clinical leadership. Post-partnership, Dr. Sarah found renewed professional fulfillment, improved work-life balance, and enhanced patient care capabilities. Her colleagues observed positive changes, noting her increased presence and reduced stress about business matters. This newfound balance allowed her to refocus on patient care and further develop her practice, benefiting both her and her patients.
Conclusion
As the consolidation trend reshapes the plastic surgery practice landscape, there’s an opportunity for you to leverage these benefits. Whether you seek to secure your financial future, enhance operational efficiency, access comprehensive support services, or rediscover professional fulfillment, joining a larger healthcare entity can pave the way for growth and improved patient care.
About Tony Siebel and Olympic M&A
Tony Siebel is the Managing Director at Olympic M&A, specializing in selling plastic surgery, behavioral health, medical aesthetics, ophthalmic, and physician-owned practices to private equity and strategic buyers.
If you are considering selling your plastic surgery practice or exploring your options, Tony invites you to reach out for a confidential conversation. Contact Tony directly at 502.360.8320 or email tonys@olympicma.com. Connect with Tony on LinkedIn at linkedin.com/in/tonysiebel to discuss how Olympic M&A can assist in navigating this transition.
