Experience with Med Spas?

January 07, 2026

by a searcher from Dartmouth College in New York, NY, USA

Anyone have experience with Med Spas that they could share? Close to submitting an LOI on an $750K EBITDA business (in partnership with an MD), but could use some help understanding the dynamics of the space and red flags to look out for in an individual deal.

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Reply by a lender
from Cornell University in Los Angeles, CA, USA

Hi ^redacted‌ - nice to meet you. I actually recently closed on a deal within the same industry and have done others before in###-###-#### Things to watch out for: Regulatory complexity is high, with each state having unique laws on medical oversight and licensure. In many states, only licensed physicians can own or direct clinical services, and all procedures must be overseen by a qualified medical director. Non-compliance could lead to shutdowns or legal risks. Every med spa must have a licensed physician as medical director, and all clinical treatments (injectables, lasers, energy devices) must be provided by licensed professionals under that supervision. States differ on who can administer which treatments, but hiring unlicensed staff or lacking proper medical oversight can expose the business to legal and insurance risk. With the SBA, we have seen lenders ask if a physician can guarantee these loans, making them much easier from a regulatory standpoint. That said, if you ever need help reviewing this deal, I am happy to help. We work with all the major SBA lenders. The bank pays us after your loan closes, so this is a 100% free service for you. You can email me directly at redacted or schedule a meeting with me: https://cal.com/francodeguzman/30min. Look forward to chatting!

Reply by an intermediary
from Rochester Institute of Technology in Toronto, ON, Canada

I have sold a number of med-spas and in my experience the main risks are provider dependance risk (if the main injector is the seller and is not staying on) and increased competition and commoditization, they are under pressure from more downscale providers. Check the customer attrition, and customer LTV

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