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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.

This article appears in September 2024

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This article appears in...
September 2024
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Welcome to the September issue of Aesthetic Medicine Magazine
After a refreshing summer break, we’re thrilled to
Meet the experts
The Aesthetic Medicine editorial board’s clinical expertise and diverse range of specialities help ensure the magazine meets the needs of the readers. In this issue, we have received guidance from the following members:
HOT OFF THE PRESS
Study highlights AI’s potential in clinical settings Researchers
Injecting knowledge
Editorial assistant Michelle Duffield reached out to industry professionals to hear their opinions on the importance of hands-on training in aesthetics
Trend Spotlight: Laser highlighting
Editorial assistant Michelle Duffield talks to Dr Zoya Awan about the latest hair bleaching technique to appear on social media
PREPARING THE SKIN AND PROMOTING HEALING
Why peri-procedural skincare is big in the US – and growing in the UK 1,2
OUT & ABOUT
The Ardour Clinic invited guests, including editor Anna Dobbie, to celebrate, educate and rejuvenate, as well as enjoy a bespoke mini treatment. Accompanied by a delicious grazing board and champagne,
Aesthetic Medicine North
The North’s leading trade show for aesthetic professionals is back for 2024
A world of Clinical Education
Aesthetic Medicine extends its clinical education to two days for AM North 2024, with injectable live demos and medical-only workshops coming to Manchester this autumn
MAXIMISING THE VALUE OF YOUR PRACTICE
Here are Verilo’s top strategies to maximise the saleability of your practice
THE BENEFITS OF SYNTHETIC EXOSOMES
Dr Brendan Khong explains how adding exosomes has benefited his practice
SHOW PREVIEW
We round up the products, treatments, offers and new launches you will find at AM North 2024
Time after TIME
Editor Anna Dobbie visits Dr Manav and Yogeeta Bawa at their new location in Woodford to understand their ethos and discover the secret of working with your spouse
The Princess and the PRP
Regenerative expert, nurse Claudia McGloin answers all your burning questions
Male ANDROGENETIC ALOPECIA
Over the past decade there has been an increase in demand for hair regrowth treatments. Androgenic alopecia (AGA) is one of the main causes of hair loss and accounts for 80% of t
FIVE KEY ASPECTS TO AESTHETIC BUSINESS SUCCESS
With a legacy spanning almost three decades, Hamilton Fraser has been insuring aesthetic practitioners and clinics throughout the evolution of the sector. A key part of the company’s ethos is supporti
CELL OPTIMISATION: skin
Dr Mayoni Gooneratne explores cell optimisation and its role in skin rejuvenation
TRACELESS WEIGHTLESS moisture
Simone Shoffman, head of education at Healthxchange, answers questions on Obagi Hydrate Light Weightless Gel Cream
THE RISK OF non-surgical rhinoplasties
Dr Juliah Tbarani O’Shea considers whether using a cannula is safer than a needle
THE BENEFITS OF Pharmacists in aesthetics
Holly Armstrong looks at the integral role of pharmacists in aesthetic medicine
THE EVOLUTION OF EDUCATION
Harley Academy’s Dr Marcus Mehta sheds light on why staying updated is crucial to providing the best patient care
STOPPING sexual harassment
Croner senior business development manager Nick Babington explains how the Worker Protection Act 2023 will safeguard against sexual harassment
THE IMPORTANCE OF NUTRITION IN SKINCARE
When treating the skin, it is crucial to prioritise nutrition, both internal and topical
Illuminating LED
Dr Patrick Treacy, a renowned f igure in aesthetic medicine, is celebrated for his innovative contributions to LED therapy. He developed award-winning procedures like the Dublin Lift and the PLUS Tech
THE SMART WAY TO MANAGE FINANCE
The long-term benefits of providing financial options with 0% interest
RETINOID REGUL ATIONS
The umbrella term ‘retinoids’ refers to compounds of both natural, biologically active forms of vitamin A (retinol, retinal, and retinoic acid) as well as synthetic analogues of adapalene. This holy g
Treatment review: SERENITY AND STRENGTH HOLISTIC STRESS MASTERY
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Treatment review: SPA AFTERNOON AND COLONIC HYDROTHERAPY
Editor Anna Dobbie had a relaxing afternoon of treatments at Angel Clinics’ Aesthetics Wellness, including a session on the Angel of Water
High-tech facials: SKINSTORM FACIAL AT LAMURE AESTHETIC CLINIC
Contributing reporter Kezia Parkins went to Lamure Aesthetic Clinic to experience her first Skinstorm Facial
PRODUCT NEWS
Supplier of aesthetic products, 4T Medical, has announced the UK launch of Eve, a multi-platform aesthetic device developed and manufactured in South Korea. The Eve integrates four technologies: hydra
Are you thriving or struggling?
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7 common insurance mistakes
Hands up if you read the small print. Whether it’s agreeing to terms and conditions or accepting cookie notifications, many of us are guilty of not fully reading the wording before clicking ‘accept’
Mental health in the workplace
David Banaghan, co-founder and interim chief executive at Occupop1 looks at how to make the workplace a safe place to discuss mental health issues
FOUNDATIONS OF success
Leadership consultant Marcus Haycock gives his four foundational principles of success for individuals, teams, and businesses
ASK Alex
“Where do I distribute educational information and content for patients?”
Looking for back issues?
Browse the Archive >

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