How to Buy a Plastic Surgery Practice
For a surgeon who wants to own rather than build, the decision to buy a plastic surgery practice can offer an established patient base, a recognized location, trained staff and, in some cases, an existing surgical suite. It can also bring risks that are specific to aesthetic medicine, from heavy marketing dependence to revenue that is closely tied to the selling surgeon’s name.
This guide walks through the main steps buyers typically work through, from defining the target to closing and transition. Ownership rules, facility requirements and payer rules vary by state, and nothing here is legal, tax, billing or compliance advice.
Step 1: Define the Practice You Want to Own
Plastic surgery practices vary widely, and the type of practice shapes both the risk and the financing conversation.
- Cosmetic-focused practices: mostly cash-pay surgical and nonsurgical procedures driven by marketing and reputation
- Reconstructive practices: more insurance-based work, often tied to hospital privileges and referral relationships
- Blended practices: a mix of cosmetic and reconstructive cases that may smooth out swings in demand
- Practices with an office-based OR or med spa: more revenue streams, but more equipment, staff and oversight
Being clear about your clinical focus and your preferred operating model will help you screen opportunities and explain your plan to lenders.
Step 2: Understand How the Practice Earns Its Revenue
Cash-pay cosmetic revenue can be attractive, but it may rise and fall with consumer confidence and marketing spend. Buyers should review revenue by procedure category, surgical versus nonsurgical services, cosmetic versus reconstructive work and seasonal patterns over several years.
It also helps to understand how patients pay. Many practices collect deposits or prepayment before surgery, sell treatment packages or memberships, or offer third-party patient financing. Each of these can create obligations that carry over to a new owner, so they should be identified and addressed in the purchase agreement with the help of counsel and accountants.
Step 3: Measure Surgeon Dependence
In many plastic surgery practices, patients choose the surgeon as much as the practice. The selling surgeon’s reputation, reviews, before-and-after galleries and social media presence may drive a large share of new consultations.
Questions to ask include:
- How many cases does the selling surgeon personally perform?
- Are other surgeons, injectors or aestheticians generating meaningful revenue?
- Who controls the website, domains, phone numbers and social media accounts?
- Are patient photo consents broad enough to support continued use, which counsel should review?
- Will the seller stay on for a defined transition period?
The more the business depends on one person, the more important a structured transition becomes.
Step 4: Review Valuation and Earnings
Value is generally based on documented, sustainable cash flow after paying a market salary to the surgeon who will perform the cases. Buyers should test proposed add-backs, normalize unusual marketing years and consider how much revenue may follow the seller out the door. Our article on plastic surgery practice valuation covers the factors that tend to move value up or down.
Step 5: Evaluate the Facility and Surgical Suite
If the practice has an office-based operating room, buyers should understand its accreditation status, the condition and age of the equipment, anesthesia arrangements and recovery space. Accreditation, facility licenses and related approvals should not be assumed to transfer, and the steps needed after a change of ownership should be confirmed with counsel and the relevant accrediting body.
Buyers should also review the lease, including assignment rights, landlord consent, renewal options and who owns the build-out.
Step 6: Complete Due Diligence
Due diligence for a plastic surgery acquisition often covers financial statements and tax returns, patient deposits and prepaid packages, marketing contracts and lead sources, device leases and equipment financing, staffing and compensation, malpractice history and insurance, and any reconstructive payer contracts. Payer contracts, credentialing, Medicare and Medicaid enrollments and vendor programs should not be assumed to transfer.
A detailed plastic surgery practice due diligence checklist can help keep the process organized. Billing, documentation and compliance matters should be reviewed by qualified professionals.
Step 7: Arrange Financing to Buy a Plastic Surgery Practice
Many buyers use financing rather than paying the full price in cash. Depending on the deal, options may include SBA-backed loans, conventional practice loans and, in some cases, a seller note.
SBA 7(a) loans can be used to help finance the purchase of an existing practice and, in some cases, working capital and related real estate. Eligibility and terms depend on the business, the buyer, the use of proceeds, program rules and lender review. Every loan is subject to approval, and nothing here is a commitment to lend.
Lenders generally look at historical cash flow, the buyer’s surgical experience and credit, available liquidity and how the transition will protect revenue. Seller notes are typically subordinate to the senior loan, and lenders or programs may limit earnouts. Our guide to the plastic surgery practice down payment explains how equity injection is usually evaluated, and our SBA loan calculator can help you estimate payments for planning purposes only.
Step 8: Plan Working Capital and the Transition
Even a strong practice may see a dip after closing as patients get to know a new surgeon. Payroll, rent, marketing and device payments continue while the new owner builds trust. Reserving working capital and planning introductions, joint consultations and marketing updates with the seller can help support continuity.
Common Mistakes to Avoid
- Assuming the seller’s patients will automatically stay
- Overlooking deposits, prepaid packages or open revision commitments
- Assuming accreditation, licenses or payer contracts will transfer
- Underestimating the marketing budget needed after closing
- Using all available cash at closing and leaving too little in reserve
Final Thoughts
When you buy a plastic surgery practice, you are acquiring a brand, a patient community and often a facility. Careful review of revenue quality, surgeon dependence, the surgical suite and the transition plan can help you make a confident decision and structure financing that fits the practice.
US Medical Funding helps plastic surgeons finance the purchase of established practices. Learn more about our plastic surgery practice acquisition financing and our full range of plastic surgery practice financing options.
