Private Equity and Financial Planning

Successful cosmetic surgery practices are built on more than just clinical expertise, although providing excellent patient care is a crucial aspect of a thriving practice. Financial planning, strategic partnerships and smart business decisions are the other equally important side of the coin.

Here, we explain the ins and outs of how private equity and customized financial planning can help drive revenue growth for established practices, as well as some of the most common exit strategies available for practice owners who are planning for retirement or a transition away from practice.

Strategies for Revenue Growth

Our team at Olympus Cosmetic Group is dedicated to creating an individualized growth plan for each of our cosmetic surgery practice partners. Below are some of the areas we consider to drive revenue growth.

Strategic Investments

For mature, well-established practices, growth often means opening new locations, adding new cosmetic surgeons or expanding service offerings. Private equity can provide the necessary capital and strategic guidance to support these initiatives, including purchasing new medical equipment, hiring new staff members and purchasing or renting new offices to foster expansion into new markets. This access to resources ensures that your practice can scale effectively and respond to market demands, ultimately enhancing your competitive edge and long-term sustainability.

Group Purchasing Power

Collective buying power, such as that offered by our network of cosmetic surgery practices, allows practices to negotiate better rates for supplies, equipment and services. This benefit can significantly reduce operating costs and thus increase profitability. Group purchasing power also ensures access to cutting-edge products and technologies, enabling practices to maintain high standards of care while simultaneously optimizing their bottom line. Additionally, strong relationships with top vendors ensures reliability and consistency in the quality of materials and services provided.

Improved Operations

Our team brings decades of expertise in streamlining the backend operations of your practice, from human resources and payroll to marketing and legal compliance and everything in between. Improving the efficiency and effectiveness of these operational processes ultimately increases the profitability of your practice by reducing overhead and operating costs. This then frees up resources to be dedicated to improving patient care and offering the latest medical treatments and services available.

Marketing and Lead Generation

Effective marketing plays a crucial role in sustaining growth and expanding into new markets. Our team is well-versed in implementing customized, comprehensive marketing strategies proven to boost lead generation and patient acquisition, from both offline and online sources. Data-driven insights and targeted campaigns on Google and social media platforms can also enhance your brand’s presence in your community and improve existing patient retention, resulting in multiple channels of sustained revenue growth.

Customized Financial Planning

We understand that every cosmetic surgery practice is unique and requires individualized financial planning tools and strategies to meet specific goals and challenges. Our approach to customized financial planning involves a detailed analysis of your practice’s financial health, combined with strategic guidance to optimize revenue and effectively manage expenses.

Some of the key aspects of your individualized financial plan include:

Tailored Solutions

We custom-tailor financial solutions to best suit the unique needs and goals of your practice, whether that is aggressive expansion, steady growth or preparing for an exit strategy. This customized approach ensures that financial planning is closely aligned with your visions for both your practice and your personal career trajectory.

Risk Management

Running a private practice is not without risk, such as market fluctuations, economic downturns, reputation management and regulatory changes. However, we are equipped with the expertise needed to help identify and mitigate those risks as much as possible. By developing robust, custom-tailored risk management solutions, we can help your practice protect its financial health and ensure long-term stability, despite ever-changing trends, technologies and economics.

Long-Term Growth Planning

Our goal is to set your practice up for long-term growth and sustainability, not just achieve quick, short-term wins. We can create a customized timeline of strategic investments, operational improvements and financial planning to help your practice build a strong foundation for success. This long-term growth perspective helps our partners stay competitive and profitable, easily adapting to industry changes and evolving patient needs.

Exit Strategies for Practice Owners

No matter where you are in your career, having a clear exit strategy in place is an important element of both the financial planning for your practice and your personal retirement planning. Cosmetic plastic surgeons in private practice have several options when it comes to retirement, and our team can expertly help you navigate those options to create the best plan for your practice and personal goals.

Some of the most common exit strategies for private practice physicians include:

Succession Planning – Many plastic and cosmetic surgeons choose to gradually transition ownership of their practices to a junior partner over a longer period of time, referred to as succession planning. This process helps to ensure a smooth transition of leadership and keeps your practice running with minimal disruptions. Not only does succession planning help to ensure the future success of the business you’ve worked so hard to build, but it can also secure your financial future as you look toward the next chapter.
Partial Sale – In a similar vein to succession planning, arranging the partial sale of your practice allows you to continue to be involved in your practice, but with a significantly reduced workload. This strategy essentially allows you to sell a portion of your practice to either a junior partner or third party while still retaining some ownership yourself and continuing to contribute to the success of the business. Our team can help you create a flexible partial sale arrangement that allows you to scale back your responsibilities while still benefiting from the practice’s growth and profitability.
Full Sale – For cosmetic surgeons considering retirement or looking to move onto other ventures, a full sale of their practice may be the most viable exit strategy. By partnering with a private-equity-backed organization, you can maximize the value of the practice, positioning it for a lucrative sale. Our financial expertise and comprehensive market knowledge can help to ensure that you receive a fair and competitive price for your life’s work. This option provides a clear and definitive exit for you, while still ensuring the continued growth and legacy of the practice under new ownership.

The Olympus Advantage

As a doctor-led-and-governed organization, Olympus Cosmetic Group has firsthand knowledge of the unique challenges, risks and opportunities of running a cosmetic surgery private practice. This firsthand experience, coupled with our dedication to providing you with customized solutions that allow you to be as involved as you would like, offers an unparalleled partnership experience.

Our collaborative approach ensures that you have a say in the strategic direction of your practice, while benefiting from the financial stability, profit growth and operational efficiency strategies provided by Olympus. Additionally, by partnering with Olympus, you can focus more on patient care while we handle the administrative tasks necessary to efficiently run the business side of your practice, helping you achieve a better work-life balance.

If you are interested in joining a network that values your expertise and supports your growth with state-of-the-art facilities and a robust professional community, get in touch with us to see if our partnership could be the solution you are looking for.

Frequently Asked Questions

What financial metrics are most important to private equity firms?

Private equity firms typically evaluate a practice based on key performance indicators like EBITDA (earnings before interest, taxes, depreciation and amortization), revenue growth trends, profit margins, operating costs and patient acquisition metrics. These data points help to determine the financial health and scalability of the practice.

What’s the difference between selling to private equity vs. merging with another practice?

Selling to private equity provides access to capital, operational support and strategic resources while still allowing you to retain some control and focus on patient care. Merging with another practice usually involves combining operations and leadership, which may result in less autonomy and fewer resources for long-term growth.

What financial documents will I need to provide during the due diligence process?

You’ll typically be asked to provide profit and loss statements, tax returns, balance sheets, payroll data, patient volume statistics and documentation of liabilities or contracts. This helps all parties involved accurately assess value and risk.

Can I retain partial ownership after selling to private equity?

Yes. Olympus Cosmetic Group supports flexible ownership structures. You may retain partial ownership and remain involved in the practice’s success while reducing your day-to-day responsibilities and benefiting from shared growth.

Can private equity help me reduce personal financial risk tied to the practice?

Yes. By partnering with a private equity-backed group like Olympus Cosmetic Group, you diversify your financial exposure and reduce reliance on the practice’s performance for your income or retirement.

What tax implications should I consider when selling my practice to private equity?

While specific tax implications vary, a full or partial sale may result in capital gains taxes, and the structure of the sale (asset vs. equity) can affect your liability. Olympus Cosmetic Group works with financial experts to help structure deals in a tax-efficient manner for all parties.

How involved will I be in business decisions after the sale?

You can stay highly involved. Olympus Cosmetic Group is doctor-led and supports physicians having a say in strategic decisions. You may retain a leadership or advisory role on the board, with control over clinical direction and input into operational priorities.

How are financial goals set and tracked post-partnership?

Financial goals are set based on performance benchmarks and market opportunities, with regular reviews to track progress and adjust strategies as needed.

How does private equity affect staff compensation and benefits?

Private equity involvement can lead to changes in compensation structures and benefit offerings for staff. In many cases, access to broader resources may enhance benefit packages, streamline HR operations or create new performance-based incentives. However, specifics vary depending on the goals of the new ownership and the structure of the partnership.

How does private equity impact legal liability for my practice?

Private equity influences practice valuation by acquiring practices at a multiple of earnings before interest, taxes, depreciation and amortization (EBITDA). A customized long-term growth plan is then implemented with the aim of increasing the revenue and profitability of the practice. This can be achieved through improving operational efficiency, expanding into new locations, offering new services or bringing on new surgeons. Over time, the valuation of your practice is expected to increase as these strategies are put into place.

What Happens to My Staff in a Private Equity Partnership?

Partnering with private equity typically shifts many administrative and legal burdens to the parent organization. Olympus Cosmetic Group brings legal expertise to ensure compliance and reduce your personal liability exposure related to employment law, contracting and operational risk.

Is private equity right for small or solo cosmetic surgery practices?

While there can be benefits to partnering with a private equity firm as a small or solo practice, Olympus Cosmetic Group is interested in bringing on larger, multi-location and/or multi-surgeon practices that are already thriving and ready to expand to the next level.

Additional Resources

Tips to Increase Patient Retention and Loyalty: Understand some of the top reasons why patients do not return and the steps your practice can take to overcome these obstacles and increase return visits.
Leasing vs. Buying Medical Equipment: Consider the pros and cons of leasing vs. buying medical equipment and learn more about how a private equity partnership can help in either scenario.
5 Key Steps to Optimize Your Bottom Line: Looking for ways to increase the profitability of your practice? Make sure you have these bases covered.
Will a Private Equity Partnership Affect Patient Care? Learn more about how a private equity-backed group like Olympus Cosmetic Group works with leading surgeons to ensure patient care remains the highest priority.
How to Choose the Right Private Equity Partner: Not all private equity partnerships are the same. Review these tips to ensure you’re choosing the best fit for your practice.

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