10 factors to set up your medspa for future sale
Look at your medspa’s historical revenue numbers.
Are sales growing or declining over the past few years?
Also calculate your net profit margin – the percentage of revenue that becomes profit after expenses. A higher profit margin indicates an efficient business.
*All of these numbers, and any financials should be organized and easily accessible – use an accountant or a program like Quickbooks. No one is going to weed through your handwritten ledgers or notebooks.
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This figure gives a sense of your medspa’s true operating cash flow, which is important for potential buyers.
Before you determine how much %22you wan%22 for your medspa, research recent sale prices of similar medspas in your area. Adjust these values based on how closely the other businesses match yours in size, location, and services offered.
Determine the current market value of all your medspa’s physical assets like equipment and property. You can get professional appraisals or research current selling prices.
Analyze your customer retention rates, average customer spending, and overall market share.
Do you have a large database of clients. What does your lead gen funnel look like?
Businesses with loyal, high-spending clients in growing markets are more valuable.
Estimate your medspa’s future revenue growth based on industry trends and your expansion plans. Projected future earnings can be discounted to determine present-day value.
Assess any potential legal liabilities or compliance issues. This may require setting aside a contingency fund that reduces your overall valuation.
Evaluate the cost of replacing key employees and the impact that your management team has on operations. Losing critical personnel can hurt a business’s value.
It is important to make sure your business isn’t solely reliant on you (as the owner) for a large portion of revenue. Make sure if you are leaving that you have high revenue generating providers employed to make it more attractive to potential buyers.
High customer satisfaction, reflected in online reviews, can indicate a business with strong repeat traffic and additional revenue potential.
This is a big one that most medspas ignore.
Your digital presence is what drives bookings and 80% come from Google.
How active is your website? How many monthly visitors does it get? Is it capturing emails, is there content creation happening monthly – and on and on.
Even you are a little weak in some areas mentioned above, a strong digital presence and lead generation funnel will be very attractive to potential buyers.
