Plastic and cosmetic surgery practice owners who are considering growth opportunities will likely come across terms like “private equity backed” and “private equity acquisition” when researching their many options. While these terms sound similar, they are two distinct structures with very different implications for the future of your practice.
Understanding what each means and the benefits and drawbacks of both can help you decide if one or neither of these strategies could be right for you and your practice.
What Is Private Equity?
Private equity (PE) refers to investment funds that buy ownership in private companies, with the goal of increasing value and profit. The best businesses for a private equity partnership have strong growth potential and, with the right guidance and resources, can deliver long-term value for both the practice owner and PE firm.
Plastic surgery private equity is particularly popular because this industry has predictable cash flows, high profit margins and a strong demand that tends to remain steady during market fluctuations. It is also a highly fragmented market, with many independent practices that could present promising consolidation opportunities.
What Does “Private Equity Backed” Mean?
When a plastic surgery practice is private equity backed, it means the business has accepted an investment from a private equity firm in exchange for a portion of ownership. In most cases, the original physicians or practice owners continue to run the clinic and maintain decision-making power, with the benefit of added resources for growth, marketing and technology and equipment upgrades.
This model allows practices to stay competitive and scale, while preserving much of their autonomy, branding and workplace culture. For patients, this model often means access to more locations, new technology and expanded service offerings — all while still being cared for by the same trusted providers.
At Olympus Cosmetic Group, we offer private equity backing in this way, providing support and resources to help plastic surgery practices grow, while allowing surgeons to retain control over how they care for their patients.
What Does “Private Equity Acquisition” Mean?
A private equity acquisition refers to a full buyout, where the private equity firm purchases the practice entirely and takes over ownership and operations. This generally leads to structural changes, including shifts in management, staffing, pricing or branding.
While acquisitions can be beneficial for practice owners who are looking for a quick exit strategy, this model often leads to reduced control for doctors and a more corporate feel for patients.
Why the Difference Matters for Your Practice
Choosing between private equity backing and a full acquisition comes down to your long-term goals as a practice owner. If you are looking for a quick exit strategy and are ready to step away from the day-to-day operations, a full acquisition might be the right fit for you.
However, if you want to remain actively involved in your practice’s future and continue to provide care, shape its direction and benefit from its growth, private equity backing is most likely the better choice.
At Olympus Cosmetic Group, we specialize in private equity backing for plastic surgery practices. To learn more about how we can help you grow your practice while staying true to your vision, contact us today.
