3 Things That Surprise MedSpa Owners During the Sale Process
Selling your practice is likely a once-in-a-career event. While attorneys, accountants, and brokers may guide different aspects of the transaction, many physician owners are navigating the sale process for the first time.
One of our goals at Founders Beauty Group is to make the process as transparent as possible. Before we ever begin diligence, we spend time discussing the areas that most commonly catch sellers off guard.
1. Partnership after closing
Many owners assume selling means walking away from the business immediately. While every transaction is different, our model is built around partnership rather than a traditional buyout.
We look for physician partners who want to continue helping shape their practice, support clinical excellence, and contribute to the broader platform. For many of our partnerships, that means remaining involved for approximately four to five years following the transaction.
2. Inventory is part of the purchase
Inventory is often misunderstood during a transaction. Because inventory is included in the agreed purchase price, it’s important for practices to continue purchasing products at their normal cadence leading up to closing.
Near the end of the process, a target inventory level is established based on historical operating needs.
If inventory falls below that agreed target, a true-up is typically required before closing, either through additional product or a purchase price adjustment.
3. Understanding working capital
“Cash-free, debt-free” transactions are another area that frequently creates confusion. Many owners initially assume this means all cash is removed from the business before closing.
In reality, most transactions are structured so the practice retains sufficient working capital to continue operating – covering payroll, inventory purchases, and day-to-day expenses after ownership transfers.
The exact amount varies by business and deal structure, but maintaining appropriate working capital is a standard part of most transactions.
Setting expectations early
Every practice is different, and every transaction has its own nuances. But we’ve found that discussing these topics upfront helps create a smoother process and stronger partnership.
A successful transaction isn’t just about reaching the closing table—it’s about ensuring everyone understands the process, knows what to expect, and enters the partnership with confidence.
