Private equity firms have started acquiring med spas or studying the market for future investment. Some say many of these small, regional businesses are not yet “ripe” for the usual private equity playbook of buying a platform and then tacking on add-ons. Others, though, see the space as a fragmented, recession-resistant market primed for sponsors’ buy-and-build strategies. Med spas straddle the consumer and healthcare sectors and are drawing in investors from both sides. Healthcare investors say that since the services are discretionary aesthetic treatments, they’re not subject to the same insurance reimbursement risk as other areas in healthcare. Consumer investors, meanwhile, say that interest in these services has held up even in challenging economic conditions, despite high costs.
Read the full article: Betting on the Face Card: Building out Aesthetic Healthcare Brands //
Source: https://middlemarketgrowth.org/medspa-aesthetic-healthcare-brands-dealmaking/