Med Spa Valuation Multiple and What a Med Spa or Spa Business Is Worth
Enter the spa's revenue and owner earnings and read a range benchmarked to what spas actually closed at, whether you are setting an asking price for your med spa or checking a med spa for sale before you make an offer.
Estimated business value
Method breakdown
What moves this number
Estimate, not a certified appraisal. Your figures are not stored.
The median US spa sold for $240,000 across 2021 to 2025, based on closed BizBuySell sales of beauty spas, day spas and med spas, on median revenue of $466,636 and median owner earnings of $106,792. Half of sales landed between 1.40x and 2.78x seller discretionary earnings, or 0.37x to 0.83x revenue, and a med spa with sales above $800,000 a year can sell at 2.78x or more.
That is 2.25 times the median earnings, the highest effective multiple in the beauty group. On an SBA loan a buyer can draw up to about $63,073 a year at the median price, on about $28,860 of cash at closing. The adviser bands of 4x to 6x EBITDA describe the same deals after a salary: with a hired manager the median spa is 4.40x. If the seller is the nurse injector, the earnings mostly leave with them. This is a benchmark and an estimator, not a certified appraisal.
Spas, median asking price against sale price
2021
2022
2023
2024
2025
$162.5k
0.94
$159.5k
0.94
$299k
0.87
$325k
0.92
$277.5k
0.85
BizBuySell, spas sold 2021 to 2025. Light bar median asking price, dark bar median sale price, average sale to ask below each year.
Closed transactions
01What spas and med spas actually sold for
These are health and beauty spas reported sold on BizBuySell across the five years 2021 to 2025. The source describes them as mostly locally owned independents with some franchise units, and says the group covers beauty spas, day spas and medical spas, each offering a progressively higher level of service. It does not split med spas out or publish the number of sales. Massage businesses, hair and nail salons are counted separately (section 07). If you have been pricing from a listing site's instant estimate, our comparison of BizBuySell valuation alternatives explains what those tools leave out.
Median sale price
$240,000
What the middle spa actually closed at, 2021 to 2025
Median asking price
$296,500
What the same sold spas were listed at
Median revenue
$466,636
Annual treatment, membership and retail revenue of the middle spa sold
Median owner earnings (SDE)
$106,792
Seller discretionary earnings, a 22.9 percent owner margin
| Spas, 2021 to 2025 | Lower quartile | Median | Average | Upper quartile |
|---|---|---|---|---|
| Earnings multiple, sold | 1.40x | 2.08x | 2.29x | 2.78x |
| Earnings multiple, current listings | 1.92x | 2.76x | 3.79x | 3.64x |
| Revenue multiple, sold | 0.37x | 0.54x | 0.62x | 0.83x |
| Revenue multiple, current listings | 0.40x | 0.72x | 0.97x | 1.11x |
| Owner earnings, sold | $64,233 | $106,792 | $203,728 | $232,728 |
| Owner earnings, current listings | $75,000 | $147,786 | $203,896 | $260,115 |
| Revenue, sold | $247,953 | $466,636 | $707,592 | $838,178 |
| Revenue, current listings | $296,853 | $469,311 | $684,918 | $815,178 |
Source: BizBuySell health and beauty spa business valuation benchmarks, spas reported sold on the platform 2021 to 2025, read October 2026. Shaded rows are current and recent listings at their asking prices. The listing earnings multiple average (3.79x) sits above its own upper quartile because a few listings ask far more than the rest. Benchmarks, not quotes.
Three things stand out. First, the average spa is much bigger than the median one. Average owner earnings of $203,728 are almost double the $106,792 median, and average revenue of $707,592 is 51.6 percent above the median. That gap is the med spas: a minority of large, injectable-heavy practices at the top of the range, sitting next to a much larger number of small day spas. Find out which half of the table you are in before you pick a multiple.
Second, the readings agree reasonably well. The median multiple is 2.08x and the median sale over the median earnings is 2.25x. Multiplying medians gives $222,127, 7.4 percent below the median sale; the revenue route, $466,636 at 0.54x, gives $251,983, 5.0 percent above. Any of the three lands within about $20,000 of what the middle spa sold for.
Third, the spas on the market now look stronger on paper and ask a lot more. Current listings report median owner earnings of $147,786, 38.4 percent above the sold set, and ask a median 2.76x against 2.08x paid, 32.7 percent more. Sold spas closed at an average 0.89 of their asking price, and in 2025 the ratio fell to 0.85, the lowest of the five years.
If you are working out how to calculate SDE for the spa in front of you, start with who does the treatments and what the devices cost each month. An owner who injects or does facials without a paycheck is doing work a buyer will have to do or pay for, and a laser payment that the seller added back is still a payment someone has to make. Then find your row in section 05.
| Year | Median sale | Median ask | Sale to ask | Average SDE multiple | Average revenue multiple | Median revenue | Median SDE | Margin |
|---|---|---|---|---|---|---|---|---|
| 2021 | $162,500 | $175,000 | 0.94 | 2.42x | 0.56x | $409,588 | $95,614 | 23.3% |
| 2022 | $159,450 | $169,450 | 0.94 | 2.34x | 0.56x | $317,429 | $85,162 | 26.8% |
| 2023 | $299,000 | $299,000 | 0.87 | 2.40x | 0.65x | $410,000 | $150,000 | 36.6% |
| 2024 | $325,000 | $350,000 | 0.92 | 2.31x | 0.68x | $600,000 | $129,952 | 21.7% |
| 2025 | $277,500 | $299,000 | 0.85 | 2.12x | 0.62x | $478,925 | $110,480 | 23.1% |
Source: BizBuySell, same page. The median sale roughly doubled from $159,450 in 2022 to $325,000 in 2024, which BizBuySell attributes to larger and more profitable spas entering the market, then pulled back to $277,500 in 2025. From 2021 to 2025 the median sale rose 70.8 percent while median revenue rose 16.9 percent and median earnings 15.5 percent. The average earnings multiple drifted down from 2.42x to 2.12x over the same years.
Our calculation
02What an SBA lender will finance on the median spa
Most small business buyers use an SBA 7(a) loan, so what a lender will finance sets a practical ceiling on price. The table runs a business only loan at 10.5 percent over 10 years, 1.25x debt service coverage and a 10 percent injection against the median $106,792 of owner earnings. Spas almost always lease their space, so there is no building loan here. Everything in it is computed here, not quoted.
SBA-supportable price at two owner draws, against the median sale
Scale $0 to $400,000
$147,078
What $106,792 supports at an $80,000 draw (black line).
$240,000
What the median spa sold for.
$366,662
What it supports at a $40,000 draw.
| Owner draw the buyer takes | Left for debt service | Supportable price, 10 years |
|---|---|---|
| $0 (buyer takes no salary) | $106,792 | $586,247 |
| $40,000 | $66,792 | $366,662 |
| $60,000 | $46,792 | $256,870 |
| $63,073 (the most a buyer can draw at $240,000) | $43,719 | $240,000 |
| $80,000 | $26,792 | $147,078 |
| $100,000 | $6,792 | $37,285 |
Computed here. Annual loan constant 0.16192 for 10 years at 10.5 percent. Supportable price is (SDE minus draw) divided by 1.25, divided by the loan constant, divided by 0.90. Illustrative arithmetic, not a loan offer or a credit decision.
At $240,000 the loan is $216,000 and the debt service about $34,975 a year. The median earnings cover it 3.05 times and leave $71,817 before the owner pays themselves. With the lender's coverage cushion, a buyer can draw at most about $63,073. That works for an esthetician or nurse who buys the spa and keeps treating clients. It does not work for a buyer who needs $80,000 a year from day one: that takes about $123,719 of earnings at the median price, or a seller note.
The rate can tighten it. SBA caps variable rates on loans of $50,000 to $250,000 at prime plus 6 points, and at 12.75 percent the most a buyer can draw falls to about $58,892. Compare the nail salon valuation picture, where the median price leaves a buyer about $74,088: nail salons sell for less earnings per dollar, so they finance more easily.
Cash to close on the median spa
$28,860
A $240,000 purchase at 10 percent down is a $24,000 injection and a $216,000 loan. Above $150,000 the guaranty is 75 percent, so the guaranteed portion is $162,000 and the FY2026 upfront fee of 3 percent is $4,860. Add the lease deposit, injectables and retail inventory at closing and a few weeks of payroll on top.
The lower quartile spa
$89,926
That is the lower quartile multiple on lower quartile earnings of $64,233. Those earnings support $133,030 at a $40,000 draw but cannot carry an $80,000 draw at any price. A spa this size is usually a day spa run by the person doing the treatments, and it finances for a buyer who will do the same.
The lender may value it in house
Under SOP 50 10 8.1 the lender may value the business itself when the price is $350,000 or less and buyer and seller are not closely related. The median spa sits well under that line. Larger med spas above it need an independent business valuation.
The structure has to be eligible
If the medical revenue sits in a physician-owned practice and you are buying the management company, the lender underwrites the management company and the agreement that pays it. Expect the lender to read that agreement as closely as the tax returns.
Device payments are real costs
Sellers often add back equipment financing as if it were interest. If the laser stays and the loan is paid off at closing, fine; if the buyer takes over the payments, they come out of the earnings the bank uses to size your loan.
Sources: SBA SOP 50 10 8.1 (changes of ownership: valuation). SBA 7(a) maximum interest rates. FY2026 upfront guaranty fees (SBA Information Notice 5000-872051). A summary for pricing, not legal or lending advice.
What makes med spas different
03You may be buying a management company, not the practice
A day spa is a service business like a salon. A med spa is partly a medical practice, and in many states that changes who can own the part that earns the most. On top of that come devices with debt attached and treatments clients have already paid for. Each needs its own evidence before you agree a price.
Who owns the practice
In states with a corporate practice of medicine rule, the treatments that make a med spa a med spa (injectables, lasers, medical-grade peels) belong to a physician-owned practice, and the business side is often a separate management company. Before you price anything, find out which entity books the treatment revenue, which one you are buying and whether you are allowed to own it.
The devices and what is still owed on them
Lasers, body contouring and skin devices are the largest assets and often the largest debts. A device bought on equipment financing still belongs partly to the lender, service contracts and consumables can be tied to the manufacturer, and transfer to a new owner may need its approval. Get the payoff letters, not just the equipment list.
Prepaid packages and memberships
Spas sell treatment packages and monthly memberships in advance. On closing day the buyer inherits the obligation to deliver every prepaid session, and the cash for them is already in the seller account. Count unused sessions and membership credits from the booking system and agree on a credit against the price.
Owner earnings as a share of revenue, sold spas
2021
23.3%
2022
26.8%
2023
36.6%
2024
21.7%
2025
23.1%
BizBuySell median revenue and median owner earnings by year of sale. Spas sold in 2023 kept 36.6 percent of revenue; by 2025 it was back to 23.1 percent, close to the five-year 22.9 percent.
California names the med spa arrangement directly
The Medical Board of California lists as prohibited a non-physician owning or operating a business that offers patient evaluation, diagnosis, care or treatment, and gives a spa as the example: a business offering Botox injections, laser hair removal and medical microdermabrasion that hires or contracts with a physician as its medical director, when the physician does not own the practice. It cites Business and Professions Code sections 2052, 2400 and 2417.5. Other states have their own rules, and many deals use a physician-owned professional corporation with a separate management company. Have a healthcare attorney review the structure before you value it.
The injector is often the business
Clients follow the person who does their injections. If that person is the seller, ask how many of the active clients they treat personally and plan a handover with a transition period in the purchase agreement. If it is an employee, read the employment agreement and any non-solicitation terms your state allows.
Sources: BizBuySell health and beauty spa benchmarks, 2021 to 2025. Medical Board of California, Practice Information, corporate practice of medicine. A summary for pricing, not legal or tax advice. Ownership, supervision and licensing rules for medical aesthetic services are set by each state.
Our calculation
04What the spa is worth if you will not do the treatments
Seller discretionary earnings include the owner's pay, and in many small spas the owner is the esthetician or the injector. A buyer who will not do that job has to pay someone who will. The rows below use Bureau of Labor Statistics national median wages for May 2025, plus employer FICA.
The same $240,000 price
2.25x
to an owner who keeps treating clients
4.14x
esthetician hired to replace the owner
4.40x
spa manager hired, absentee owner
| Who does the owner work | Earnings left | Price as a multiple | SBA-supportable, 10 years |
|---|---|---|---|
| Owner keeps doing treatments | $106,792 | 2.25x | $240,000 at a $63,073 draw |
| Owner was the esthetician, one hired ($48,798) | $57,994 | 4.14x | $318,365 at no draw, or $240,000 at a $14,275 draw |
| Absentee owner, spa manager hired ($52,307) | $54,485 | 4.40x | $299,101 at no draw, or $240,000 at a $10,766 draw |
| Owner was the nurse injector, RN hired ($105,013) | $1,779 | Does not finance | $9,766 at no draw |
Computed here. BLS Occupational Employment and Wage Statistics, national estimates for May 2025: skincare specialists (SOC 39-5094), median $45,330 a year; registered nurses (SOC 29-1141), median $97,550; first-line supervisors of personal service workers (SOC 39-1022), median $48,590. Plus 7.65 percent employer FICA. Benefits and local pay are not included.
To an owner who keeps working, $240,000 is 2.25x earnings, inside the middle half of sales. Replace an owner who was the esthetician and the same price is 4.14x; hire a manager and step away, and it is 4.40x, with $299,101 supportable at no owner draw but only about $10,766 a year left for you at the median price. The last row is the one that surprises buyers. When the seller was the nurse injector, a hired RN at the national median costs $105,013, and the median spa has $1,779 left. That spa is worth its median price only to another injector. This is also where the adviser EBITDA bands come from: 4x to 6x EBITDA on a small med spa is the same deal as about 2x SDE once every clinical role is paid.
Find your row
05What a spa at your earnings is worth
Each row takes an earnings level and prices it at the lower quartile, median and upper quartile multiple, next to what an SBA buyer could finance on a 10 year business loan at a $40,000 and an $80,000 owner draw.
| Owner earnings (SDE) | At 1.40x | At 2.08x | At 2.78x | SBA, $40,000 draw | SBA, $80,000 draw |
|---|---|---|---|---|---|
| $64,233 (lower quartile sold) | $89,926 | $133,605 | $178,568 | $133,030 | Does not finance |
| $106,792 (median sold) | $149,509 | $222,127 | $296,882 | $366,662 | $147,078 |
| $110,480 (2025 median sold) | $154,672 | $229,798 | $307,134 | $386,908 | $167,323 |
| $147,786 (median current listing) | $206,900 | $307,395 | $410,845 | $591,703 | $372,119 |
| $232,728 (upper quartile sold) | $325,819 | $484,074 | $646,984 | $1,058,002 | $838,417 |
Computed here. SBA columns on the same terms as section 02, before working capital. "Does not finance" means the earnings do not cover the draw. Illustrative arithmetic, not a loan offer.
From the median up, a buyer drawing $40,000 can finance more than the upper quartile price. At an $80,000 draw the median earnings support only $147,078, well under the $240,000 median sale, so most spas at the median are bought by people who will work in them. At about $150,000 of earnings, the size of the median current listing, an $80,000 draw still supports $372,119, more than the median multiple price, so the questions become the injector, the devices and the structure. If your numbers sit between rows, the estimator at the top of the page will place them.
Value drivers
06What moves a spa between the quartiles
The distance between the lower and upper quartile multiple is 1.40x to 2.78x, which on $106,792 of earnings is the difference between $149,509 and $296,882. The scale shows where the published readings fall, and how far hiring a manager pushes the same price.
Spa earnings multiples on one scale
0x to 5x
1.40x
Lower quartile
2.08x
Median multiple
2.25x
Median sale over median SDE
2.78x
Upper quartile
4.40x
Median price with a manager hired
BizBuySell spa benchmarks, 2021 to 2025. Dark band, 1.40x to 2.78x, the middle half of sales. The 2.25x and 4.40x readings are computed here.
Revenue and size
BizBuySell states that a med spa consistently generating sales over $800,000 a year may sell for an earnings multiple of 2.78 or higher, while a less popular day spa with sales well below $250,000 would likely sell closer to 1.4. Those thresholds sit near the sold revenue quartiles of $247,953 and $838,178.
Who performs the treatments
If the owner is the injector or the main esthetician, a large part of the SDE is pay for that job and many of the clients are hers or his. A spa where a team of providers carries the book, and the owner manages, sells toward the upper quartile.
Medical services mix
Injectables, laser and body treatments carry higher prices per hour than massage and facials, and they bring clients back on a schedule. They also bring the medical director, licensing and ownership questions that a day spa does not have. Price the medical revenue only if it can legally stay with the business you are buying.
Memberships and rebooking
A spa with active memberships and a high rebooking rate has revenue on the calendar before closing day. A spa that runs on discount promotions and first-visit offers has to buy its revenue again every month.
Device age and debt
A laser that is five years old and paid off is a different asset from a new one with three years of payments left. Device debt is normally paid at closing from the price, so it reduces what the seller takes home, not what the buyer pays, but only if the purchase agreement says so.
The lease and the build-out
Treatment rooms, plumbing, electrical for devices and ventilation are expensive to rebuild. A long lease with renewal options and a landlord who accepts medical use supports the multiple; a lease with a year left can stop an SBA loan.
Same margin, different multiple, illustrative
$80,150
Day spa, $250k revenue
about 1.40x on $57,250
$240,000
Median spa
sold, 2.25x on $106,792
$509,296
Med spa, $800k revenue
about 2.78x on $183,200
Computed here. Earnings at the five-year 22.9 percent owner margin, multiples from BizBuySell's size statement (2.78 or higher above $800,000 of sales, closer to 1.4 well below $250,000). Revenue rises 3.2 times; value rises 6.4 times.
Against other beauty and personal care businesses
07Spas against massage businesses, hair salons and nail salons
Spas, massage businesses and nail salons all earn about $100,000 to $107,000 at the median, yet spas sell for the most: $240,000, against $207,500 for massage and $150,000 for nail salons. On median sale over median earnings that is 2.25x, the highest in the group. BizBuySell puts it down to sales volume, which gives a buyer more room to service debt, offset by the labor a full-service spa needs. SDE multiples by industry shows the whole market.
| Category | Median revenue | Median SDE | Average SDE multiple | Median sale over median SDE | Owner margin | Median sale | Sale to ask |
|---|---|---|---|---|---|---|---|
| Spas (day spas and med spas) | $466,636 | $106,792 | 2.29x | 2.25x | 22.9% | $240,000 | 0.89 |
| Massage businesses | $548,642 | $107,301 | 2.30x | 1.93x | 19.6% | $207,500 | 0.88 |
| Other beauty and personal care | $441,132 | $106,000 | 2.30x | 1.84x | 24.0% | $195,000 | 0.90 |
| Tanning salons | $245,101 | $65,383 | 2.22x | 1.91x | 26.7% | $125,000 | 0.90 |
| Hair salons and barber shops | $298,401 | $70,225 | 2.04x | 1.64x | 23.5% | $115,500 | 0.91 |
| Nail salons | $429,000 | $101,412 | 1.76x | 1.48x | 23.6% | $150,000 | 0.87 |
Source: BizBuySell beauty and personal care comparisons, 2021 to 2025. Owner margin and median sale over median SDE computed here.
For a seller that ranking is good news; for a buyer it means the earnings cost more here than anywhere else in beauty. A nail salon with $101,412 of earnings, 5.0 percent less than the median spa, sold for $150,000, 37.5 percent less. Buyers comparing the two should read the nail salon and hair salon valuation pages side by side with this one.
Methods
08The five ways a med spa gets valued
The confusion around med spa multiples comes from people using different methods on different earnings lines. A broker selling a small spa quotes SDE, an adviser selling a multi-location practice quotes EBITDA, and a device dealer quotes resale value. SOVDOC, the same adviser, puts small practices at 2.7x to 3.25x SDE as well as 4x to 6x EBITDA. Knowing which one the other side is using is most of the negotiation.
Seller discretionary earnings multiple
The primary method for an owner-run spa and the one an SBA lender underwrites. Normalized SDE times a multiple, where half of all sales landed between 1.40x and 2.78x. Normalize first: the owner doing treatments without a paycheck, family on payroll, device payments and personal expenses run through the business.
Adjusted EBITDA multiple
How med spa advisers and private equity buyers talk. EBITDA is earnings after a market salary for every clinical and management role, which is why the multiple looks bigger. SOVDOC, a med spa advisory firm, quotes 4.0x to 6.0x adjusted EBITDA for practices under $1 million of EBITDA and 6.0x to 8.0x or more above that.
Revenue multiple
Spas sold at a median 0.54x revenue and an average 0.62x, with half of sales between 0.37x and 0.83x. Useful as a cross-check, but a spa doing high-margin injectables and a day spa doing massage and facials at the same revenue are not worth the same.
Membership and recurring revenue review
Buyers pay more for revenue that is already on the calendar: active memberships, rebooking rates and package renewals. Ask for the monthly membership count and churn for two years. It is a quality check on the earnings, not a separate price.
Asset approach
The floor for a spa that is losing money: devices at used resale value less what is owed on them, furniture, fixtures and retail inventory at cost, plus any lease value. Used aesthetic devices resell for a fraction of their purchase price, so the floor is lower than most sellers expect.
Our guide to business valuation for an SBA loan lists what the lender will ask for, and business valuation cost shows what each kind of report costs. On a $240,000 spa, a $1,500 to $8,000 calculation engagement is 0.62 to 3.33 percent of the price, and a $5,000 to $15,000 conclusion of value is 2.08 to 6.25 percent. Buyers working out the cash side should read what it costs to buy a med spa.
Questions
Med spa valuation questions, answered against the sold record
How much is a med spa worth?
The median US spa sold between 2021 and 2025, a group BizBuySell says includes med spas, day spas and beauty spas, went for $240,000 on median revenue of $466,636 and median owner earnings of $106,792. Half of sales landed between 1.40x and 2.78x owner earnings. Med spas with sales over $800,000 a year can sell at 2.78x or higher.
What is the valuation multiple for a med spa?
On closed sales, spas sold at a median 2.08 times seller discretionary earnings and an average of 2.29x, with a lower quartile of 1.40x and an upper quartile of 2.78x. Med spa advisers quote 4.0x to 6.0x adjusted EBITDA for smaller practices. The two agree once a salary is subtracted: the median spa with a hired manager is 4.40x.
How much is a spa business worth?
Most spa businesses sell for 1.40 to 2.78 times seller discretionary earnings, or 0.37 to 0.83 times revenue, based on BizBuySell closed sales from 2021 to 2025. The median closed at $240,000. A day spa with sales well below $250,000 would likely sell closer to 1.4x; a med spa above $800,000 of sales at 2.78x or more.
How do you value a med spa?
Normalize the owner earnings, subtract a market salary for any treatment work the owner does, then apply a multiple from about 1.40x to 2.78x SDE, higher for larger spas with memberships and a provider team. Check it against revenue, deduct device debt and prepaid sessions, and confirm the medical revenue can legally transfer.
What is the average med spa revenue?
Spas sold on BizBuySell from 2021 to 2025, including med spas, had median revenue of $466,636 and average revenue of $707,592, with half between $247,953 and $838,178. The average sits above the median because a minority of large med spas pull it up. Spas sold in 2025 had median revenue of $478,925.
How much do med spa owners make?
The median spa sold between 2021 and 2025 produced $106,792 of owner earnings on $466,636 of revenue, a 22.9 percent margin; the average was $203,728. Those earnings usually include the owner performing treatments or managing full time, so part of them is pay for a job rather than a return on the purchase.
Are med spas profitable?
The ones that sell are. The median spa sold from 2021 to 2025 kept $106,792 of owner earnings on $466,636 of revenue, and spas sold in 2023 kept 36.6 percent of revenue. Margins came back down to 23.1 percent for 2025 sales. Profit depends heavily on who does the injecting and what the devices still cost each month.
Is owning a medical spa profitable?
For an owner who works in it, usually yes: at the median price a buyer can draw about $63,073 a year after SBA debt service and the lender cushion. For an absentee owner it is tighter. Hiring a manager at the BLS median leaves $54,485, and replacing an owner who was the nurse injector with a hired RN leaves almost nothing.
Can a non-doctor own a med spa?
It depends on the state. The Medical Board of California lists as prohibited a non-physician owning a business that offers medical treatments, including a spa offering Botox or laser hair removal that hires a physician as medical director when the physician does not own the practice. Other states differ. Have a healthcare attorney review the structure before you price it.
Can you get an SBA loan to buy a med spa?
Yes, if the structure is eligible and the earnings verify. At the $240,000 median the loan is about $216,000 and the median $106,792 of earnings covers the debt service 3.05 times, leaving room for an owner draw of about $63,073. The SBA upfront fee is about $4,860 and cash to close about $28,860.
How long does it take to sell a med spa?
BizBuySell reports a median of 169 days on the market for spas that sold, about five and a half months from listing to an accepted deal. Lease assignment, device financing payoffs, a new medical director agreement and lender review usually add several weeks before closing.
Do spas sell for the asking price?
Not usually. Sold spas closed at an average 0.89 of their asking price, and the median sale of $240,000 was 80.9 percent of the $296,500 median ask. Current listings ask a median 2.76 times earnings against 2.08x paid, so a spa listed above 2.78x needs earnings or memberships that justify it.
Why do med spas sell for more than day spas?
Mostly size. BizBuySell links higher multiples to higher sales volume, because larger spas leave a buyer more cushion to cover debt service and still pay themselves. Med spas tend to be the larger, higher priced end of the category, and recurring injectable and membership revenue makes the earnings easier to finance.
How much does a med spa valuation cost?
A calculation engagement from a credentialed appraiser typically costs $1,500 to $8,000, and a full conclusion of value $5,000 to $15,000. On a $240,000 spa that is 0.62 to 6.25 percent of the price. Under $350,000 an SBA lender may value the business in house, so many deals start from an estimate against closed sales.
Benchmarks behind the estimate
Buying or selling a beauty or health business
Know the range before you sign a letter of intent
Enter revenue and owner earnings, for your own med spa or for one you are considering, and read a value range against real spa sales. An estimate in a few minutes, before you pay a broker or an appraiser.