The growing popularity of medical spa treatments like Botox injections, laser hair removal, and specialized facials has piqued the interest of investors.

Investors are increasingly showing interest in the medspa industry as it continues to grow and consumers develop a habit of seeking services like Botox injections, laser hair removal, and specialized facials.

Many private equity firms in this industry are consolidating existing clinics under a single management company, employing the well-known strategy of acquiring and expanding to achieve economies of scale. Investments that support ongoing roll-ups have been particularly popular in recent times.

As companies continue to grow and expand, private equity firms are increasingly able to invest significant amounts of money that align with their goals. However, there has consistently been a steady increase in demand, which has been further boosted by the growing acceptance and frequency of treatments like Botox. 

According to several studies, owner-operators, who are often first-time entrepreneurs, have been establishing medical spas separate from medical dermatology practices for approximately ten years. However, up until this point, the emerging sector was too small to be viable for the majority of mid-sized companies.

This year has witnessed a significant surge in deals in aesthetic dermatology, with a minimum of eight announcements in 2023, based on several studies. Although the number of deals remains relatively low, there has been a noticeable uptick compared to last year. In 2020, private equity firms made just one growth equity investment in this sector.

The growing momentum is also in stark contrast to private equity’s retreat from conventional healthcare services.

Medical spa has been one of the few categories of private equity that has shown positive growth this year. It aligns well with the current deal environment.
Some private equity firms are optimistic about the continued expansion of the industry.

In recent weeks, some firms have established a continuation fund for medical spa business chains that oversee networks of over 40 medical aesthetics clinics across North America. The transaction generated C$375 million (approximately $275 million) in funding for the platform to pursue further acquisitions.

Other private equity firms recently invested in a similar platform located in Miami, marking a significant step in their growth strategy. During the summer of 2018, the company experienced significant growth by expanding its operations in the US. This expansion involved acquiring new businesses and establishing additional medical spa locations.

Although the growth of the medical spa industry has been relatively recent, the demand from consumers and the ongoing need for treatments have been long-standing.

However, investors have grown more cognizant of the importance of follow-up visits for cosmetic procedures like Botox and laser hair removal.

Investors in the industry believe there is potential for expansion in secondary markets, along with the expected cost savings from implementing a roll-up strategy in New York and LA. That’s where some of these trends originated, so perhaps those are more established markets.

Investing in high-quality Botox training programs will equip you with the necessary skills for a successful career in the cosmetics industry. Enroll in a course today and gain expertise in the highly sought-after field of botox under the guidance of industry specialists. If you are dedicated and committed, you can master the art of using Botox to its maximum effectiveness and impress every customer that visits your establishment.

Dentox offers a comprehensive training program that equips medical and aesthetic practitioners with the necessary knowledge and skills to expertly administer Botox injections to their clients. With Dentox’s assistance, you can achieve growth for your business while also improving the quality of care for your clients. Dr. Howard Katz is highly regarded as the leading expert in the field of injectable training. He offers both traditional classroom teaching and online instruction.

Dentox provides Botox training options to suit your preferences. You can choose between online training, which can be accessed at https://dentox.com/all-courses/botox-training/, or in-person training, available at https://dentox.com/live-courses/.