Medical Spa Valuation Multiples 2026: What is Your $1M-$3M EBITDA Practice Worth?
If you own a medical spa or aesthetics practice, you have probably seen headlines about medspas selling for 10x or 12x EBITDA. Some of those numbers are real. Most of them do not apply to a main street or lower middle market practice.
This article is a conservative, practical guide to medical spa valuation multiples in 2026, written specifically for practices generating $1M-$3M in EBITDA. If you are considering an exit in the next 12 to 24 months, you need to understand the math buyers are using to price your business at this size.
In 2026, buyers are disciplined. They want to see transferability, predictable revenue, and clean operations. Here is a breakdown of what medspas are actually trading for and the levers you can pull to maximize your exit.
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Why Your Exit Strategy Matters
Your choice of exit strategy affects more than just price. It determines:
How much you walk away with and how that payout is structured (lump sum, seller financing, rolled equity, earn-out)
How long you need to stay involved after closing
What happens to your staff and patients during and after the transition
Your legacy and the long-term direction of the practice
A solo practitioner selling to an associate will have a fundamentally different experience than a multi-location owner joining a PE-backed platform. Neither is inherently better. But one may be significantly better for your specific situation, timeline, and goals.
The $1M-$3M EBITDA Range: Where You Sit in the Market
Why focus on this specific EBITDA range? Because the buyer pool, deal structure, and valuation methodology all change as you grow.
Under $1M EBITDA: Buyers often value these practices based on Seller's Discretionary Earnings (SDE). They view the business as buying a job, where the owner is the practice. HealthFMV research on small medspa listings confirms this, showing cash flow multiples of just 2.1x to 3.9x at the 25th and 75th percentiles for businesses at this scale.
$1M-$3M EBITDA: This is the graduation zone. Buyers begin to value you based on a multiple of normalized EBITDA, and the buyer pool expands meaningfully. You are now attracting search funds, independent sponsors, and small PE groups.
Above $3M EBITDA: More institutional buyers enter the process, financing gets easier, and multiples expand. You start to access platform-level pricing.
In the $1M-$3M range, your most likely buyers are search funds looking for stable cash flow, independent sponsors assembling a roll-up thesis, and small PE groups acquiring bolt-on locations. Private equity interest in healthcare services remains elevated, and aesthetics is one of the most active sub-sectors. According to Scope Research, publicly announced medspa deals grew from a small handful in 2019 to over 50 per year in 2023 and 2024, driven primarily by PE firms and platform companies.
2026 Valuation Multiples by Practice Profile
The single biggest driver of your multiple at this size is not growth rate alone. It is transferability. A medspa where the owner performs 70% of treatments is fundamentally riskier than one with a deep provider bench and documented systems.
Below is a conservative snapshot of the multiples we are seeing for medical spas in the $1M-$3M EBITDA range.
These ranges are consistent with several independent sources:
FOCUS Investment Banking (January 2026) reports that standalone medspas generally align with add-on dermatology multiples of 4x-7x EBITDA, while operators with scale, diversified treatments, and recurring memberships can approach 10x-12x EBITDA.
HealthFMV notes that typical multiples for small to medium-sized medspa operators fall in the 3x to 8x EBITDA range, depending on scale, service mix, and growth.
First Page Sage's 2025 Healthcare EBITDA Multiples Report shows that in the $1M-$3M EBITDA range, the closest comps trade at 5.4x (dermatology), 5.6x (medical practices), and 7.3x (plastic surgery). Medspas straddle these categories depending on service mix and medical oversight.
Can practices in this EBITDA range sell for more? Absolutely. But the 10x-12x outcomes that make headlines usually involve larger scale, exceptional systems, or a strategic buyer with a specific thesis. For most deals at this size, the table above reflects realistic expectations.
Owner Dependency: The Metric That Matters
If there is one concept that determines your multiple more than any other at this size, it is owner dependency. Think of it as the medspa equivalent of "key-person risk."
The question every buyer asks:
"If the owner stops performing treatments tomorrow, what happens to revenue?"
Owner performs 60%+ of treatments: The business is the owner. Buyers discount heavily because revenue is not transferable. Expect the lower end of the range (3.5x-5.0x) regardless of EBITDA.
Owner performs 20-40% of treatments: The business has a bench. Revenue is partially de-risked. This is the baseline for accessing mid-range multiples.
Owner is primarily in a management role: The business runs without daily owner involvement. This is where premium multiples live.
Pro Tip: If you are 12 to 18 months from a potential exit, the single highest-ROI move is hiring and training additional providers. Every percentage point of revenue you shift off your own schedule directly improves your multiple.
Recurring Revenue and Patient Retention
In a medspa, "recurring revenue" does not mean software subscriptions. It means membership programs, prepaid treatment packages, and loyalty programs that create predictable, repeat visits.
FOCUS Investment Banking highlights that recurring monthly membership revenue is one of the strongest predictors of valuation uplift in the medspa space. Buyers will look closely at two things:
What percentage of revenue comes from repeat patients? A practice where 60-70% of revenue comes from returning clients is significantly more underwritable than one relying on new patient acquisition every month.
Do you have a formal membership or subscription model? Membership programs, even simple ones, signal predictability. A practice with 30-40% of revenue from memberships can often add 0.5x-1.0x to its multiple versus an identical practice without one.
What "good" looks like at this size:
Repeat patient rate above 50%
Active membership program with at least 20-30% of revenue
Patient retention that does not crater when you stop running promotions
If you do not have a membership program today, launching one now, even a simple monthly tier, can meaningfully improve your valuation in 12 months.
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Margins: Why Medspas Command Premiums
One reason medical spas attract buyer interest is margin profile. Well-run medspas generate EBITDA margins of 20-35%, which is meaningfully higher than many other owner-operated service businesses.
This reflects several structural advantages:
Cash-pay revenue. Minimal insurance involvement means less friction, faster collections, and no payor risk.
High average transaction values. Injectables, laser procedures, and body contouring are premium services.
Scalable service delivery. Trained providers can perform treatments without the owner present.
Low capex relative to revenue. Equipment investments are significant but manageable compared to many healthcare verticals.
According to the American Med Spa Association, the industry grew from 8,899 locations in 2022 to over 10,400 in 2023, representing nearly 18% location growth. That fragmentation, combined with strong unit economics, is exactly what attracts roll-up buyers and creates competitive deal processes.
Buyers pay premium multiples for businesses with strong margins because cash flow compounds quickly post-acquisition. But margins alone do not guarantee a premium. They have to come alongside transferability and clean operations.
The Compliance Factor
For medspas, compliance is not a checkbox. It is a diligence landmine that can kill deals or compress multiples overnight.
During due diligence, buyers will scrutinize three areas. First, medical director agreements: is the arrangement properly documented and structured? Many states have specific requirements around physician supervision, and a handshake deal with your medical director is a red flag. Second, scope of practice: are your providers (nurse injectors, estheticians, laser techs) operating within their licensed scope? Violations here can create legal liability that buyers will not absorb. Third, adverse event documentation: do you have a protocol for complications, and is it consistently followed?
Issues in any of these areas do not just reduce your multiple. They can cause buyers to walk away entirely. FOCUS Investment Banking notes that buyers increasingly require clean compliance documentation, scope-of-practice clarity, and properly supervised injectables programs as table stakes.
Pro Tip: Centralizing your compliance documentation and auditing it before going to market is one of the cheapest and most impactful things you can do. Buyers reward transparency and punish surprises.
How Deal Structure Affects Your "Take Home"
A $5 million offer is not always $5 million in your bank account on closing day. In the $1M-$3M EBITDA range, deals are rarely 100% cash at close.
You should expect a structure that looks something like this:
60-75% Cash at Close. The guaranteed money.
10-20% Seller Note. A loan you provide the buyer, paid back over 2 to 5 years with interest. This keeps you invested in a smooth transition.
10-20% Earn-out. Performance-based payments tied to retaining key patients, providers, or hitting revenue targets in the first 12 to 24 months post-sale.
Some deals also include working capital adjustments and inventory true-ups, which can shift the final number by 5-10%. Understanding these mechanics before you enter negotiations prevents surprises at the closing table.
A slightly lower headline multiple with cleaner terms (more cash at close, shorter transition, simpler earn-out) is often the better outcome than a higher number loaded with contingencies.
Preparing for a 2026 Exit
If you are eyeing an exit in 2026, you cannot wait until the month you want to sell to start preparing. The market is active, but it favors the prepared.
To get the highest multiple, you must focus on five areas. First, reduce owner dependency: hire and train providers, build a management layer, and prove the business performs when you are not in the treatment room. Second, build recurring revenue: launch or strengthen a membership program that creates monthly predictability. Third, clean up your financials: normalize EBITDA, separate personal expenses, and keep a clear add-back schedule with backup documentation. Fourth, de-risk compliance: audit your medical director agreement, scope-of-practice documentation, and adverse event protocols before a buyer does. Fifth, document your systems: create SOPs for clinical protocols, patient intake, marketing, rebooking, and provider training. Buyers pay more for businesses that can be integrated quickly.
Selling a medical spa is different from selling a traditional service company. The multiples can be higher, but buyers are sophisticated and the diligence is more intense. By understanding the levers of transferability, recurring revenue, and compliance, you can position your practice not just to sell, but to exit at a premium.
If you want a second set of eyes on your numbers and what your practice could reasonably sell for, schedule a confidential valuation consultation.
FAQ
What multiple should I expect for my $1M-$3M EBITDA medical spa?
Most owner-operated medspas in this range trade between 3.5x-7.5x EBITDA, depending on transferability, recurring revenue, compliance, and growth. First Page Sage data shows comparable healthcare subsectors (dermatology at 5.4x, medical practices at 5.6x, plastic surgery at 7.3x) in the same EBITDA band, and FOCUS Investment Banking places standalone medspas at 4x-7x with upside for scale.
Are medspa multiples really 10x-12x?
Sometimes, but those outcomes are typically tied to larger platforms with multiple locations, institutional-quality management, and strong recurring revenue. FOCUS Investment Banking notes that dermatology platforms with medspa ancillaries can trade at 12x-15x, but standalone practices at $1M-$3M EBITDA rarely access those levels.
Do I need multiple locations to get a good multiple?
No, but single-location practices typically sell as tuck-ins at lower multiples. If your single location has a deep bench, documented systems, and a membership model, you can still command mid-range multiples (5x-6.5x).
How important is a membership program to my valuation?
Very. Memberships create predictable, recurring revenue that buyers can underwrite. A practice with 30-40% of revenue from memberships is meaningfully more valuable than an identical practice without one. FOCUS Investment Banking identifies membership revenue as one of the strongest predictors of valuation uplift in the space.
What happens to my medical director arrangement after the sale?
Buyers will want to maintain medical supervision. Depending on the deal, your current medical director may continue or the buyer may integrate supervision into their platform. This should be negotiated as part of the transaction.
How far in advance should I start preparing for an exit?
Ideally 12 to 24 months. That gives you time to reduce owner dependency, build recurring revenue, clean financials, and audit compliance before buyers start diligence.
Recommended Reading
Business Valuation Explained — Understand how buyers calculate EBITDA and apply multiples.
Should You Sell Your Business to Private Equity? — Learn how PE deals work and what to expect from financial buyers.
Private Equity Rollovers: How to Sell Your Company Twice — Understand how rolling equity can provide a second exit opportunity.
How to Find the Right M&A Advisor — What to look for in an advisor and why it matters for your outcome.
Key Takeaways
Size Matters. At $1M-$3M EBITDA, you shift from SDE-based valuation to EBITDA-based valuation, and the buyer pool expands meaningfully.
Transferability is King. A practice where the owner is primarily in a management role commands significantly higher multiples than one where the owner performs most treatments.
Recurring Revenue Moves the Needle. Membership programs with 30-40% of revenue create predictability that buyers pay a premium for.
Compliance Can Kill Deals. Medical director agreements, scope of practice, and adverse event documentation are table stakes for a clean transaction.
Expect Structure. Offers will likely include seller notes and earn-outs, not just upfront cash. Understand the terms, not just the headline multiple.
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