Sell My Dermatology Practice

Selling a dermatology practice is different than selling a generic business. Buyers are looking for specific assets, contracts, and operational stability unique to your market.

Understanding Your Business Before Recommending a Broker

We start by analyzing medical vs cosmetic mix. Are you a general dermatology practice, a Mohs surgery center, or a cosmetic-focused med spa? The buyer pool for each is different.

From there, we identify brokers who specialize in healthcare M&A. Some focus on selling to private equity-backed platforms, while others work with large physician groups expanding their footprint. We help you find the right path.

Key Value Drivers for Buyers

• Cosmetic Revenue – High-margin cash-pay procedures boost EBITDA multiples.

• Provider Mix – A practice that relies on PAs and NPs for routine care is more scalable and valuable than one dependent solely on the owner.

Buyers evaluate your mix of medical vs. cosmetic services.

Deep Dive: Recasting Practice Financials

To get the highest price, we work with brokers who "recast" your P&L to show the true Seller's Discretionary Earnings (SDE). In healthcare, this involves specific adjustments:

• Physician Compensation: We adjust your salary to a fair market rate for a replacement dermatologist to show true business profit.
• One-Time Equipment: Purchases of expensive lasers or medical devices are treated as CapEx and added back to cash flow.
• Owner Perks: Personal vehicles, continuing education travel, and non-business memberships are added back to the bottom line.

Who is Buying Dermatology Practices?

The dermatology sector is a prime target for consolidation.

1. Private Equity Platforms:
PE-backed management groups (DSOs/MSOs) are aggressively acquiring practices to build regional networks and share admin costs.

2. Strategic Buyers:
Large hospital systems or multi-specialty groups acquire dermatology clinics to keep referrals in-house and expand service lines.

3. Individual Doctors:
Younger dermatologists looking to own their own practice rather than work as an employee are active buyers for smaller clinics.

Preparing Your Business for Exit

To maximize your multiple, ensure your patient charts are digitized and your billing/collections process is efficient. Buyers will audit your revenue cycle.

Our Advice: Review your compliance plan. Clean billing audits and HIPAA compliance are non-negotiable for institutional buyers.

If your aestheticians, PAs, or NPs hear the practice is selling, med spas and competing groups recruit them within weeks — and their patient followings go with them. If patients hear rumors, cosmetic bookings and memberships soften exactly when a buyer is verifying them.

Our Approach: We utilize strict NDAs and blind profiles. We market provider count, payer/cash mix, and financial performance without revealing your practice name until a buyer has been vetted.