What could your practice be worth?
And what is quietly holding it back? Four minutes, numbers you already know, bands and best guesses welcome. Within 48 hours Nate sends back your Practice Read:
- An estimated valuation range for your practice
- Your key numbers against industry benchmarks
- The single biggest leak we can see
- What each blind spot is likely costing you
Step 1 of 6
The practice
Context first. Rough is fine everywhere.
The numbers owners pass around. Where do yours land?
The ranges below come from published industry surveys and valuation guides. They are the same numbers owners quote to each other. Most owners know one or two. Very few know where their own practice sits.
For single-location practices, roughly $1M to $5M a year · tap a row
Of revenue, as profit, for a typical independent medspa. On $2M, that is $400K to $500K a year before tax. The strongest practices clear 30% or more.
What do you keep?
20 to 25%
Of revenue, as profit, for a typical independent medspa. On $2M, that is $400K to $500K a year before tax. The strongest practices clear 30% or more.
What does payroll eat?
25 to 35%
Of revenue, including what you pay yourself. Above that, a bigger month stops showing up in your account.
What do you charge for Botox?
$12 to $16
Per unit, in most markets. The vial and the injector's commission come out of that, and plenty of practices keep far less per unit than they think.
How much rides on one injector?
35%
Once one provider brings in more than about a third of revenue, buyers mark the price down, because if she leaves, the patients go with her.
How much is on a membership?
30%+
Of revenue on memberships is what buyers like to see, because it comes back without a promotion. Rebooking rate is the first thing they check.
What is it worth?
3x to 7x
Times a year of profit, counted the way a buyer counts it: your pay at market rate, one-time costs taken out. Where you land is mostly about how much of the practice is you.
Four minutes, numbers you already know, bands and best guesses welcome. Within 48 hours Nate sends back where you land on each row, a rough range for what the practice is worth, and the biggest leak he can see.
Example read (illustrative)
A $2M single location, payroll at 38%, one injector at 52% of revenue. Two rows out of range, both fixable, and the second one is the bigger discount the day a buyer calls.
Ranges for single-location practices, from the AmSpa State of the Industry report, published medspa accounting guides, and published medspa valuation guides. Every practice is different; these are ranges, not targets.