What an aesthetic medicine practice is worth
For doctors
Revenue is only the starting point. A practice’s value depends mostly on how much of that revenue will continue after the handover, meaning how well the practice runs without its owner.
The factors that matter most
- Dependence on the owner. If patients come back only for one doctor, the risk for the buyer is high and the value drops. A team of several doctors reduces it.
- Revenue and margins over time. The trend over recent years and profitability count, not one good year.
- Returning patients. Treatments with follow-ups and regular cycles make revenue more predictable.
- A stable team. Trained staff and clear contracts support continuity.
- Compliance. Valid authorisations, informed consents, handling of health data, communication that follows health-advertising rules. Any gap becomes a cost or a risk for the buyer.
- Equipment. Age, condition, owned or leased.
- Premises. Location, accessibility and remaining lease term.
- Online reputation. Reviews, booking-platform profiles, website.
How is value calculated?
Three methods are common, often used together:
- Income method: looks at expected future profits. For medical practices it usually starts from a “normalised” margin, recalculated to include a market salary for the owner’s own work.
- Multiples: compares the practice with similar deals, applying a multiple to margin or revenue.
- Asset method: adds up the value of the assets. On its own it undervalues a working practice, because it ignores goodwill.
A reliable valuation needs an independent professional, such as an accountant or a specialist adviser.
What to do in the years before a sale
- Bring in other doctors to reduce dependence on the owner.
- Keep clear accounts, separate from personal expenses.
- Document procedures, protocols and organisation.
- Check authorisations, consents and data handling.
- Look after reviews and online presence.
Starting two or three years ahead gives time to fix what weighs on value.
Planning succession with Vitaura
This article is for information only and is not tax, legal or financial advice.
