There’s no doubt the medspa space is hot. There are a lot of buyers looking to make acquisitions for the following primary reasons:
• Fragmented industry creates opportunities for consolidation by sophisticated buyers/investors;
• Services are usually cash payments rather than insurance;
• The model is replicable;
• The recurring-like nature of cosmetic procedures and offerings; and
• Very high-profit margins.
Most private investors utilize an MSO model to manage multiple locations and comply with the corporate practice of medicine. The most common and appropriate MSO fee structure is a cost-plus model. However, another element that should be considered is a licensing fee. If the proper conditions exist, it may be appropriate for the MSO to charge the physician-owned PC a licensing fee (or royalty) for the use of the trademark.
Feel free to schedule a call with me if you have any questions.
