Aviva Aesthetics Reveals Entrepreneur Equity: A Revolutionary Alternative to Traditional Private Equity for Med Spa Owners

As the aesthetics industry continues to mature, more med spa owners are considering their growth and exit strategies. With the AMSPA Conference 2025 kicking off tomorrow, we’re breaking down one of the most innovative partnership models shaking up the industry – Aviva Aesthetics’ “entrepreneur equity” approach, recently detailed on the Medical Spa Insider podcast with AMSPA founder Alex Thiersch.

Beyond Traditional Private Equity: How Aviva Aesthetics is Redefining Med Spa Partnerships

If you’re a successful med spa owner, you’ve likely been approached by private equity firms looking to acquire your business. The traditional model is familiar: receive a valuation (typically around 5x EBITDA), sell a majority stake, get about 70% in cash with 30% equity rollover, and usually relinquish control of your business.

But what if there was a way to gain the benefits of private equity backing while maintaining complete autonomy over your business and potentially earning 2-3 times more upon eventual exit?

That’s exactly what Tyler Weinberg, CEO of Aviva Aesthetics, and Dan Hosler, Chairman of the Board at Aviva and Managing Partner of DuneGlass Capital, discussed in their recent appearance on AMSPA’s Medical Spa Insider podcast.

“Our model pretty much allows med spa owners to build their own private equity-style platform where they’re in control… you keep complete autonomy over your business… you also have the ability to make two to three times as much money compared to traditional models when we sell as a group.” – Tyler Weinberg, CEO of Aviva Aesthetics

The “Entrepreneur Equity” Model Explained

Aviva Aesthetics has created an alternative to traditional private equity called “entrepreneur equity” that works fundamentally differently:

• Retained Control: Med spa owners maintain complete autonomy over their businesses
• Ownership Based on Performance: Your stake in the platform is determined by your med spa’s earnings relative to the total platform earnings
• Majority Med Spa Owner Board: The board of directors is majority-owned by the participating med spa owners
• Aligned Incentives: The better your med spa performs, the greater your ownership and eventual payout

How the Ownership Structure Works

Unlike traditional private equity where you sell a fixed percentage of your business, Aviva’s model calculates your ownership using a simple formula:

Your Ownership = Your Med Spa’s Earnings ÷ Total Platform Earnings

This dynamic ownership model means that:

1. You are directly rewarded for growing your profitability
2. Your ownership percentage may decrease as more med spas join, but it’s a smaller slice of a larger, more valuable pie
3. Your stake is protected from underperforming businesses in the platform

“Your ownership is based on the numerator which is the earnings that your Med Spa brings to the entire platform divided by the denominator which is the earnings from all of the Med Spa owners.” – Dan Hosler, Chairman of the Board at Aviva Aesthetics

The MSO Component: Support Without Sacrifice

Central to Aviva’s model is the Management Services Organization (MSO), which provides back-office support and resources to partner med spas. Here’s how it works:

• Partner med spas contribute 4% of their gross revenue to the MSO
• This fee is tax-deductible (net post-tax impact ~2.6%)
• The MSO provides valuable services, including:
  • Vendor negotiations (already saving partners 1.5-2% of revenue)
  • Back-office support
  • KPI dashboards and performance tracking
  • Best practice sharing among partners

Dan Hosler frames this 4% contribution as an investment by the med spa owners in their own private equity firm. As the platform grows, the MSO can offer more services and potentially even reduce this percentage.

Maintaining Complete Autonomy: How It Works in Practice

One of the most significant differences between Aviva’s model and traditional private equity is the level of control retained by med spa owners:

• Full Operational Control: You continue making all decisions regarding your business
• Focus on Core Strengths: The MSO handles administrative burdens so you can focus on patient care and business growth
• Med Spa Owner-Led Governance: The board is majority med spa owners, ensuring the platform’s priorities align with the owners’ interests
• No Employment Requirement: Unlike some PE deals, you remain an independent business owner, not an employee

The Financial Upside: Why This Model Could Lead to Bigger Returns

Aviva’s model is designed to potentially deliver significantly higher returns compared to traditional private equity exits:

• Higher Multiples Through Scale: By building a larger platform together, the eventual exit can command premium multiples (potentially 2-3x higher)
• Retained Cash Flow: You keep all your cash flow after joining (minus the 4% MSO fee)
• Credit for Future Growth: Any new locations or growth achieved after joining directly increases your ownership stake
• Cost Savings: The platform’s negotiating power delivers immediate vendor savings
• Operational Efficiency: Back-office support helps optimize profitability

Who Is the Ideal Aviva Partner?

While Aviva’s sweet spot is med spas generating $2-10 million in revenue, they consider businesses outside this range if they demonstrate strong growth potential:

• Established med spas looking for growth support
• Owners with a growth mindset who want to retain control
• Businesses with optimizable EBITDA
• Med spas that could benefit from operational support

“It’s really about who the people are, where do we think they’re going, and finding the most passionate med spa owners that want to build something bigger.” – Tyler Weinberg, CEO of Aviva Aesthetics

DuneGlass Capital’s Track Record in Healthcare Consolidation

Aviva Aesthetics isn’t DuneGlass Capital’s first venture into healthcare consolidation. They’ve built similar platforms in other healthcare verticals:

• Their oral surgery platform grew to over 50 locations and $150 million in revenue
• Achieved mid-to-high 30s in EBITDA within four years
• Attracted significant interest from private equity firms

This experience helps inform their approach to building a valuable med spa platform that will be attractive to larger private equity firms when the time comes for an exit.

Preparing Your Med Spa for Partnership or Sale

Whether you’re considering Aviva’s model or traditional private equity, preparing your business for a potential partnership or sale requires:

• Clean Financial Records: Implement proper accounting practices and financial reporting
• Optimized EBITDA: Focus on profitability, not just revenue growth
• Operational Efficiency: Streamline operations and reduce unnecessary costs
• Growth Mindset: Demonstrate potential for continued expansion
• Strong Leadership Team: Build a team that can operate without your constant presence

Is This the Future of Med Spa Consolidation?

The aesthetics industry continues to evolve, and models like Aviva’s “entrepreneur equity” approach represent an interesting middle ground between remaining completely independent and selling outright to private equity.

“Let’s flip that upside down, let’s use entrepreneur equity to empower… the entrepreneurs to really keep more of the upside and I think that’s at the crux of everything we do at DuneGlass and certainly everything that we’re doing at Aviva Aesthetics as well.” – Dan Hosler

This model allows growth-minded med spa owners to:

1. Gain the benefits of being part of a larger platform
2. Maintain autonomy over their individual businesses
3. Potentially achieve a more lucrative exit in the future
4. Build wealth through continued growth and operational improvements

A New Path Forward for Med Spa Owners

As the aesthetics industry matures, innovative models like Aviva’s “entrepreneur equity” offer med spa owners more options for growth and eventual exit. By emphasizing shared ownership, continued autonomy, aligned interests, and leveraging collective resources, this approach addresses many of the concerns traditionally associated with private equity acquisitions.

Whether this model or something similar becomes the dominant approach to med spa consolidation remains to be seen, but it certainly offers a compelling alternative worth consideration for med spa owners planning their long-term business strategy.

For those attending the AMSPA Conference this week, Aviva Aesthetics will be at Booth 540 to discuss their model in more detail. You can also learn more at avivaesthetics.com.