Smart consolidation in aesthetics is finally here and investors are paying top dollar for practices.
Consolidation continues to gain momentum in aesthetics and has marched onwards since 2014, when dermatology first transitioned from practice management integrations into a prime niche target for private equity portfolio investment.
“In 2017, we saw the business of plastic surgery become the next big target of private equity (PE) after a nascent dermatology run,” states David C. Branch, Founder of Viper Equity Partners. “It only made sense with people living longer and so many minimally and non-invasive procedures becoming available to the population as a whole.”
Strategic alignment goes beyond the benefits of a PE-backed exit or growth strategy to increase shareholder value and relieve you of day-to-day backend operations, important though these are. Joining with the right PE partner means aligning with healthcare innovators who have your best interests at heart, so you can capitalize on the planned growth of your practice in a definitive time frame, with the terms you choose.
My experience with Viper has been amazing! They exceeded my expectations on every level. The deal they negotiated for me was exceptional.” — Dr. David Rankin, Founder, Aqua Plastic Surgery and Partner, Water’s Edge Dermatology
Besides, the benefits and financial options available today are tremendous, regardless of the temporary public health challenges we currently face. It is still possible to plan your exit and growth transition with operational freedom, create value with millions in investor backing, and mitigate your risks regardless of current market disruptions. However, it is imperative to engage a well-connected, knowledgeable M&A advisor to access the majority of your equity with a smart deal structure to assure your legacy.
Choosing the right M&A advisor will ensure your investor partner brings C-suite business savvy to the table and allows you to scale up into new geographies or procedures, without excessive leverage. The right advisor can also negotiate for you multiple bites at the apple, including initial cash payouts, equity, and bonus structures, as you benefit from economies of scale and bargaining power to boost your profitability.
“Viper has set the bar on valuation multiples in this space, successfully completing several marquee aesthetics deals and a strong proprietary pipeline in the Southwest, including California, as well as the East Coast from New York to Florida,” David C. Branch adds. “Our latest focus of merging medical and cosmetic dermatology offices into non-integrated roll ups with each other and plastic surgeons has proved monumental, due to the cross-referral opportunities. Not to mention the cross-training opportunities using the latest high-tech surgical and cosmetic treatment trends.”
“Times have changed, and Viper is ahead of the curve,” Nina Das, SVP of Aesthetics at Viper Equity Partners, explains. “The time is now for practice owners to explore options to gain access to the equity and growth potential of the practices they have painstakingly created over years. Why wait and choose to be lost at sea, if you will?”
Moreover, Viper has the right investor connections in place. “We provide guidance based on decades of PE and medical platform experience. We put doctors first, so you remain in the driver’s seat and make 100% of all clinical and key business decisions. We assure silent acquisitions — your brand equity and organizational culture will stick, and key employees stay. All while you co-plan your succession and growth trajectory by integrating the right mix of doctor partners and recruit new associates, fellows, and clinical assistants to become the next generation of medical and cosmetic leaders,” Nina Das says.
Few investment bankers are in the know and own the aesthetics space and investor network like Viper does. Viper’s top-notch team of in-house M&A experts has a strong track record and will package your practice elegantly, negotiate the best offers, and take you to a successful close. With Viper Equity Partners, you profit from our intimate relationships with high-end investment partners to garner synergies with the highest price for your practice.
Nina Das asserts: “Presently, our aesthetics team is working with 22 PE firms looking to start new verticals, up from two just 24 months ago. The bottom line is aesthetics consolidation is happening and will continue to happen. And it will grow aggressively over the next 10 years. I tell all practice owners that being on the sidelines is a monumental mistake.”