I am looking to purchase an existing medical spa in california. They come in all price ranges. What information should i ask for and who should reiview it in order to come up with the value of the business for sale for me to offer as price to buy?

thanks,
maria

That is a loaded question.

You need

1. Lawyer
2. CPA

The lawyer will go over all the legal issues. By the way if you are not a doctor, don't even think about purchasing a medical spa.

The cpa will evaluate the worth of your possible purchase. This will determine if the spa is worth purchasing and how much you can negotiate.

3. A private banker may be a very good idea. Most large banks don't like to lend money to small business. SBA may be able to help if you have 20% down.

Good luck.

Most important is to know the volumn of the center. How much of the clientele is revolving and how much are long term clients? How solid is the staff, will change cause technicians to leave, this can be a huge problem with a business that is built on relationships between client and technician. The business could go to half if there is an employee turnover after the sale. I sold several med spas and you need to know the internals not just the numbers.

MD,

Thanks for your input. In regards to your comment "if you are not a doctor, don't even think about purchasing a medical spa.", there are a lot of non-doctors specially woman owning this type of business, pls elaborate on your reason for saying that.

Thanks a lot,
Maria

Maureen,

Thanks for your input. May i contact you? My email address is dardesar123@yahoo.com.


Regards,
Maria

Maria,
The answer to the question is in the CA Medical Board report. It is illegal for a non-doctor to own a medical practice or medspa.Those "women who own them" won't for long...

read

http://www.medbd.ca.gov/Pubs_Actionrept_2006_07.pdf

Maria,

I agree with anotherMD.

You see the problem is that in order to open a medical spa you need to have a medical corporation. In order to do this you need to be a doctor.

So, If you go into an agreement with a doctor and you give him/her your money, the doctor can simply choose to walk away from the deal and take his patients with him. You won't have ANY access to his patients becasue of the HIPA laws.

As far as the equipment, the doctor can leave them behind if he can afford it or make an arrangement to pay it off. You don't get to keep the lasers because they are medical lasers and only a physician can purchase such a machine.

These laws are in place to keep the patient and the consumers safe. There are more regulations on the way and those individuals that have gone inot any agreements will have a hard time.

It depends on the state that you are in. In California a non-professional can open a MedSpa as I know several that are now open and have been for many years. You will need a lawyer first and foremost to proceed, and make sure the lawyer understands the laws govening MedSpas. There are several different corporations that you will have to set up and your Medical Director will need his own PC (professional corporation). Please do not be discouraged as I have one in Southern California and consult for two more and we are doing quite well.

MedSpa Owner,
Good to hear you are doing so well and are operating within the laws of California. Would you mind sharing with us the name of your medspa? If you are indeed legally sound that should not be a problem!
Look forward to hearing from you
MD

Medical spa valuation is a tricky subject. Most CPAs are not versed in it. Most bonafide business appraisers either specialize in medical practices or avoid them altogether because of the complications. CPAs are even prohibited from doing valuations in states like Florida without a broker license. "Consultants" are prohibited from advising on practice sales in California without a state lawyer or broker license. Most non-specialists will overvalue a spa's value, in my 25 year's experience as a medical practice appraiser and licensed broker.

I agree that the Prohibition on the Corporate Practice of Medicine prohibits ownership of medispas in most states. There are additional medical spa and laser laws happening in many states including Florida and California. The current CA bill that would take away a physician's license for being a "medical director" of a lay-owned spa may fail this year due to state budget issues, but it will be back. This law has been eventually passed in most states. There is currently a loophole in CA law that allows a lay person to have a relationship with a physician through parallel entities, but expect it to close shortly. I am an expert in the topic and wouldn't take the chance myself in trying to own one, just to have the courts take it away. There are those who would argue that you would still then be able to have a "management company" to partner with the physician, but compensation would be limited to fair market value of services, or otherwise face a possible felony and loss of the physician's license. Not a good risk to take.

The Fair Market Value of a medical spa is typically around 2.5-3 times Dividends as defined by IRS Revenue Ruling 59-60, but details matter in specific cases. You can see more details in my article Med Spa Valuation at http://www.medicalpracticeappraisal.com/medspa-appraisal-valuation.html,
or in my book on medical practice valuation at http://www.medicalpracticeappraisal.com/medical_practice_valuation_book.html

You can see a few I have for sale as examples of value at http://www.medicalpracticeappraisal.com/scmedspa/ and http://www.medicalpracticeappraisal.com/sfmedspa/ and http://www.medicalpracticeappraisal.com/seattleplastic/ and http://www.medicalpracticeappraisal.com/texasderm/
Owners of medspas might think these are underpriced -but if so- why haven't they sold yet? Value is what a buyer is willing to pay, not just what a seller asks in payment.

Keith C. Borglum CHBC
Licensed Medical Practice Broker & Appraiser Lic#s: CA-00767129 FL-BK3206346
Certified Healthcare Business Consultant (CHBC)
Professional Management & Marketing, 3468 Piner Rd, Santa Rosa CA 95401-3954
ph (707) 546-4433 fax 546-4437
Web Page at http://www.MedicalPracticeAppraisal.com
CV/Credentials at http://www.MedicalPracticeAppraisal.com/kbcv
Member: Institute of Business Appraisers; National Society of Certified Healthcare Business Consultants;
Industry Expert in Medical Practice Valuation: Business Brokerage Press; Faculty American Academy of Dermatology
Author:Medical Practice Valuation Appraisal Guidelines & Workbook by PSR Inc.2006

Keith,

Any new news on Florida laws? I try to follow closely but not have seen/heard anything significant.

Florida currently has Corporate Practice of Medicine.

Yes, the law passed limiting use of cosmetic lasers. You can see an article here:
http://www.tampabays10.com/news/local/story.aspx?storyid=42243

A non-physician can own a medical practice in Florida and employ a doctor, but dermatologists available for employment are very, very scarce. One third of all dermatologists in America are looking for an employee, partner or buyer according to an AAD study, so its super-hard for anyone else to employ one to run or supervise lasers in Florida.

--

Keith C. Borglum CHBC
Licensed Medical Practice Broker & Appraiser Lic#s: CA-00767129 FL-BK3206346
Certified Healthcare Business Consultant (CHBC)
Professional Management & Marketing, 3468 Piner Rd, Santa Rosa CA 95401-3954
ph (707) 546-4433 fax 546-4437
Web Page at http://www.MedicalPracticeAppraisal.com
CV/Credentials at http://www.MedicalPracticeAppraisal.com/kbcv
Member: Institute of Business Appraisers; National Society of Certified Healthcare Business Consultants;
Industry Expert in Medical Practice Valuation: Business Brokerage Press;
Author:Medical Practice Valuation Appraisal Guidelines & Workbook by PSR Inc.2006

Keith,

The media article you sited seems to be a little misguided, a lot are.

A PS or Derm is needed for medical supervision ONLY if the offices main treatments involve skin care. throw a little HRT and weight management you void the need for PS/Derm.

The Dermatologist quoted must have misspoken, he said this law is for patient safety. Im sure he meant to say it was about greed, ego, turf, and the incompetence of medical doctors who are not PS/Derm.

In response to the last post by the Florida PA; the laws are tricky, and they change. I have found you can't use logic in evaluating the law. I doubt that "adding HRT and weight management voids the need for a plastic surgeon or derm". I would strongly recommend you (or anyone reading this) consult with a specialist attorney expert in this arena prior to acting on your opinions.

Otherwise, best wishes for success.

Keith C. Borglum CHBC
Licensed Medical Practice Broker & Appraiser Lic#s: CA-00767129 FL-BK3206346
Certified Healthcare Business Consultant (CHBC)
Professional Management & Marketing, 3468 Piner Rd, Santa Rosa CA 95401-3954
ph (707) 546-4433 fax 546-4437
Web Page at http://www.MedicalPracticeAppraisal.com
CV/Credentials at http://www.MedicalPracticeAppraisal.com/kbcv
Member: Institute of Business Appraisers; National Society of Certified Healthcare Business Consultants;
Industry Expert in Medical Practice Valuation: Business Brokerage Press;
Author:Medical Practice Valuation Appraisal Guidelines & Workbook by PSR Inc.2006

Keith,

Some laws are tricky. The ones about skin care medical offices in Florida are not. None of these laws change very fast, it takes people with agenda and money years to make it happen. Actually adding HRT and age management does void the need for PS/Derm as long as skin care is not the main treatments. This is plainly written in statute.

I would strongly recommend you (or anyone reading this) do your own detailed research before consulting with a specialist attorney expert in this arena. The last time I used one of these "specialists" I spent 3K to find out I knew more about this then he did.

I am a current owner/physician of a medical spa in southern californa and am looking for someone to take over the lease of my equipment....No other monies requested. I am just working too many hours between my medical practice and the spa too. Does anyone have any ideas how to do this.

please email me info/contact on your medspa. botoxmd@hotmail.com

I emailed you the info regarding the medical spa equipment. Please let me know if there are any other ideas or questions

I am a RN and interested in purchasing a med spa/ laser hair removal center...how do I go about finding one?

DM: Where are you located? You might want to post on this site mentioning your location. Your state regulations with respect to the "practice of medicine" will also be very important for many reasons. In most states you will have to have a relationship with a licensed physician -- even to purchase (and legally operate) lasers, etc.

Due to medical reasons, we are open to selling or partnering with a provider to help us continue
to grow our aesthetic center. We are showing sales growth our 3rd year and are willing to train
or continue working part-time to help with the transition. A buyer/partner would have less overhead
than what we carry right now while seeing continued growth in Nebraska.

Full medical staff trained and professional mid-levels and Medical Director.

Im looking for a medspa in California or Arizona if im a med proffesional but not a Dr can i own a med spa if i have Dr that is my medical director and Rn to do the injections and medical lasers

Thanks

I am looking to sell l my medical spa in dearborn , michigan

We currently have multiple listing for medspas and dermatology practices for sale

Family illness forces sale. Successful laser hair removal clinic complete with building, patients, beach location! Also have new equipment for skin tightening, IPL, and resurfacing! Southern California, for info rninc@live.com

Interesting discussion. Laws are different from state to state and governed by whether the particular state permits the corporate practice of medicine. That said, licensing, scope of practice and whether the practitioner is insurable also enters into the question. Further complicating the question is that in some states, ARNP's can be Medical Directors and own Medical Spas. California is becoming the most stringent in making sure that there is a medical director on site who directly supervises the intitial consultation and defines the treatment protocol of any medical procedure. The short answer that we give is that if you're not a doctor, you can't own a facility that provides medical services or employ a doctor. If anyone is looking to purchase a successful and profitable Cosmetic Surgery Practice with a Medical Spa in Indian River County FL , I know of one.

Be well,

~Monte Zwang, Principal
Wellness Capital Management

We do Laser Hair Removal, Botox, Chemical Peels, Microdermabrasions and sell products. We have an MD "Medical Director" but are not MD owned. We have been audited by the state Medical Board and they have determined that we are not practicing, selling or doing anything "medically" related. Also we've been audited by the tax examiners on sales tax issues, which we passed. So, we are apparently "clean" with the government. We have two locations in the St Paul, Mpls area and want to sell so we can travel more. Anyone interested?

We do Laser Hair Removal, Botox, Chemical Peels, Microdermabrasions and sell products. We have an MD "Medical Director" but are not MD owned. We have been audited by the state Medical Board and they have determined that we are not practicing, selling or doing anything "medically" related. Also we've been audited by the tax examiners on sales tax issues, which we passed. So, we are apparently "clean" with the government. We have two locations in the St Paul, Mpls area and want to sell so we can travel more. Anyone interested?

We do Laser Hair Removal, Botox, Chemical Peels, Microdermabrasions and sell products. We have an MD "Medical Director" but are not MD owned. We have been audited by the state Medical Board and they have determined that we are not practicing, selling or doing anything "medically" related. Also we've been audited by the tax examiners on sales tax issues, which we passed. So, we are apparently "clean" with the government. We have two locations in the St Paul, Mpls area and want to sell so we can travel more. Anyone interested?

We do Laser Hair Removal, Botox, Chemical Peels, Microdermabrasions and sell products. We have an MD "Medical Director" but are not MD owned. We have been audited by the state Medical Board and they have determined that we are not practicing, selling or doing anything "medically" related. Also we've been audited by the tax examiners on sales tax issues, which we passed. So, we are apparently "clean" with the government. We have two locations in the St Paul, Mpls area and want to sell so we can travel more. Anyone interested?

I am interested in more information and possibly seeing the medspa that is forsale.

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