MAXIMISING THE VALUE OF YOUR PRACTICE

Here are Verilo’s top strategies to maximise the saleability of your practice

Despite the recent collapse of one of the UK’s largest high street cosmetic chains, the aesthetic medicine sector is thriving. The sector is expected to grow by 5-10% per year through 2026. This growth is driven by the increasing availability of non-surgical cosmetic treatments, reduced recovery times, affordability, and the influence of social media and celebrity culture.

With sector growth comes increased interest from investors looking to buy practices and consolidate the market. Whether you plan to sell now or in the future, it’s never too early to start thinking about your exit. As the age-old proverb goes, “The best time to plant a tree was 20 years ago. The second-best time is now”.

Here are our top strategies to maximise the value and saleability of your practice:

1. Financial performance and documentation

Financial health underpins your practice’s value. Consistent revenue and profit margins enhance saleability. Most buyers seek stable or growing businesses so avoid selling if the business is showing signs of decline. Accurate and transparent financial records are essential and should be kept up to date. Highlighting recurring revenue streams, such as memberships or pre-paid packages, can also make your practice more attractive by offering predictable income.

2. Minimise reliance on the owner

Practices reliant on their owners, especially as primary revenue generators, can deter buyers. To enhance attractiveness, ensure the business can run independently. Build a strong team, delegate responsibilities, and cross-train staff to demonstrate continuity post-sale. This increases value and minimises handover periods and less favourable performance-based earn-out mechanisms.

3. Predictable and scalable client acquisition

While ‘word of mouth’ is valuable, demonstrating a scalable method for acquiring clients is crucial. Build a strong online presence, optimise your website, maintain active social media profiles, invest in pay per click (PPC) advertising, and encourage positive reviews. This boosts your practice’s reputation and showcases your ability to attract new business consistently.

4. Security of tenure

Selling just before a lease end can erode goodwill and deter buyers. Demonstrate security of tenure by securing a long lease with tenant-only break clauses or obtaining landlord confirmation of a lease extension. This stability is vital for achieving a sale.

5. Invest in staff training and retention

Your team is a valuable asset. Invest in ongoing training to ensure staff are skilled in the latest treatments. High staff turnover is a red flag for buyers, so focus on retention strategies. Showcasing your practice as a desirable workplace demonstrates marketplace competitiveness.

6. Diversify revenue streams

Diversify your revenue streams by expanding services to include complementary treatments, products, and medications. Multiple revenue streams make your practice a less risky and more attractive investment.

7. Maintain your database and adopt good marketing practices

A well-organised patient database with marketing consent is essential for repeat business. Invest in practice management and marketing software and adopt best practice marketing strategies. Regular communication with patients through targeted marketing enhances loyalty and boosts your practice’s appeal.

8. Maintain high standards of patient care

Patient satisfaction and safety are paramount. Deliver high-quality care consistently and maintain rigorous safety standards. Document protocols and patient outcomes. Quality marks, safety standards, and accolades like CQC ratings enhance credibility and buyer appeal.

CONCLUSION

Maximising your practice’s value and saleability requires strategic planning and investment. Focus on financial performance, building a strong team, effective marketing, practice continuity, and showcasing quality care. Focusing on these areas will attract buyers.

For advice on planning your exit strategy, visit verilo.co.uk.