1) Introduction
Ms. O, a PA-C and owner of a thriving medical spa, caught the attention of Practice Transitions Group (PTG) when their paths crossed at an industry conference. After noticing Ms. O’s unique business approach and determination for success, PTG suggested they connect one-on-one after the conference.
Ms. O accepted the personal invitation for cocktails and dinner, paving the way for a foundation of genuine connection and trust with PTG. As time passed, PTG shared valuable industry insights and strategies, allowing space for Ms. O to consider her own goals in the context of the current market. A PTG advisor maintained regular contact, meeting with Ms. O and her husband, strengthening the foundation of trust.
2) Challenge
Ms. O shared with PTG that when she began her business years ago, she initially had a 50% partner whom she later bought out, leaving behind strained relations. The experience led her to prioritize partnerships with those genuinely invested in her success. If she were going to explore opportunities in the growing MedSpa market, she wanted a platform where her skills in management, culture-building, compensation philosophy, and team development would be valued. Ms. O expressed a desire for a Ritz Carlton-style customer service model and was eager to partner with someone who could take her business to the next level.
3) Our Approach
Recognizing that Ms. O wanted more than just money at the end of her deal, PTG had multiple conversations to truly understand her desires for platform-driven growth, cultural alignment, and a supportive partner. This thorough understanding informed the team’s marketing strategy.
4) Road Blocks
PTG’s strategy included a meticulous understanding of the market landscape and potential buyers. Recognizing Ms. O’s desire to be more than just a number in a large acquisition, PTG leveraged its network and market knowledge, identifying six to seven big players in the M&A landscape and gauging their interests.
In a market where established players had already made numerous acquisitions, PTG’s challenge was to differentiate Ms. O’s business from the conventional model. Ms. O’s preference to set the culture rather than adapt to an existing one made her a unique offering which meant that PTG would need to find a unique buyer.
5) Solution
While entertaining several large Private Equity (PE) buyers, one PTG advisor re-established contact with the Chief Financial Officer of a comprehensive medical program. He was a new buyer in the market, interested in Medspa acquisitions. His organization’s early needs intersected with Ms. O’s list of requirements for a partnership. Effective networking brought the new buyer into the fold, presenting an offer that addressed Ms. O’s financial goals and her desire to have a bigger role in the future of the med spa industry.
6) Results
Navigating the legal complexities of the deal posed a challenge for PTG, as the buyer was new to the Medspa industry. However, through thorough negotiations, every concern, from non-competes to leadership benefits was resolved.
In addition to her financial success, PTG also secured Ms. O an advisory board position, management equity, and a major role in shaping the buyer’s future in the MedSpa industry. Ensuring a smooth transition, PTG retained Ms. O’s vehicle, vehicle allowance, and other perks. This partnership solidified Ms. O’s ongoing influence in the business and granted her a role in shaping the company’s future.