Exploring the M&A landscape in aesthetics

Exploring the M&A landscape in aesthetics

Mergers and acquisitions have become a defining force in medical aesthetics. In this episode of True to Form, host Audrey Neff talks with Ben Hernandez, CEO and Managing Director of Skytale Group, about the past, present, and future of M&A in the field. As a challenging year for dealmaking concludes, Hernandez offers valuable insights for owners considering a sale and for those simply trying to understand the changing landscape.

Understanding the M&A Cycle

Hernandez frames M&A in aesthetics as cyclical, shaped by broader economic conditions, interest rates, and investor appetite. After a period of intense activity, the market cooled, and understanding why helps owners interpret what is happening and anticipate what comes next. His perspective as an advisor gives listeners a rare insider view of the forces driving deals.

What Drives Practice Valuations

For owners thinking about a future sale, one of the most useful parts of the conversation is what makes a practice attractive and valuable to buyers.

• Strong financials. Healthy, well-documented revenue and profit are the foundation of value.
• Operational maturity. Systems and processes that allow the business to run without total dependence on the owner.
• Growth potential. A clear runway for continued growth makes a practice more appealing.
• Clean structure. Sound legal and financial organization smooths the path to a deal.

Advice for Owners Looking to Sell

Hernandez offers practical guidance for owners contemplating a sale. The key theme is preparation: the practices that command the best terms are those that have built strong, transferable businesses well before going to market. Waiting until you want to sell to start preparing usually means leaving value on the table.

Building Transferable Value

A practice that depends entirely on its owner is harder to sell and worth less. Hernandez emphasizes building systems, a strong team, and processes that make the business able to thrive under new ownership. This transferable value is what buyers pay for and what owners should cultivate over time.

The Future Outlook

Looking ahead, Hernandez expects M&A activity to continue evolving with economic conditions. While dealmaking faced headwinds, the long-term trend toward consolidation in aesthetics remains. Owners who understand the cycle and prepare accordingly will be well positioned whenever the market is favorable for a transaction.

Key Takeaways for Practice Owners

• M&A is cyclical. Economic conditions and investor appetite drive activity up and down.
• Value rests on financials, operations, and growth. Strong, mature businesses command the best terms.
• Prepare well before selling. The best outcomes come from building transferable value early.
• Reduce owner dependence. A business that thrives without you is worth more.

Hernandez's expert perspective demystifies the M&A landscape, giving owners the context and practical guidance they need whether they plan to sell soon or simply want to build a more valuable practice.