Med Spa Transaction Success in the Weight Loss Market

Volume 12, Issue 13, July 1, 2025

By: Alan Hymowitz

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Over the last several years, the med spa sector has grown rapidly, powered in part by surging demand for weight loss services — particularly GLP-1 medications. For a period, medical weight loss was a primary driver of rising valuations and transaction volume. Many buyers saw GLP-1-based programs as a strong indicator of client engagement and revenue growth.

But the market has shifted.

Weight loss services are still valuable, and buyers continue to seek them. However, they no longer carry the "weight" they once did, and they are no longer the defining feature of a premium acquisition. Today's buyers are evaluating the entire business model, brand, infrastructure, and a lot more before making offers. Valuations are still strong, but they are increasingly reserved for med spas with broader foundations of success.

Med Spa Industry Snapshot

According to IBISWorld, the U.S. health and wellness spa market experienced a compound annual growth rate (CAGR) of 8% from 2020 to 2025. The average profit margin in the space is nearly 9%, which is fueled by premium services, recurring clients, and efficient business models, as we will discuss further below. Research suggests that 85% of med spa clients are women, primarily ages 35 to 54. They are increasingly committed to regular visits.

At the same time, IBISWorld notes that men represent a growing opportunity, with approximately two out of every five med spas now offering targeted packages for this expanding demographic. Seniors also continue to represent a high-value client segment, particularly for wellness-focused and age-defying treatments.

10 Strategic Priorities for a High-Value Med Spa Exit

What should med spas prioritize today, whether aiming to sell soon or building long-term value to stay competitive and maximize their future attractiveness to buyers? Let's look at 10 areas of focus.

1. Multiple locations

Multi-location operators tell an important story to prospective buyers. They benefit from economies of scale, shared staff, centralized systems, and bulk purchasing power. Buyers see these businesses as lower risk, easier to replicate, and better positioned for regional or national expansion. Staff recruitment is also easier for multi-site operators; job seekers are more confident in employers with proven history and infrastructure as well as a visible footprint.

In addition, once ownership and leadership have successfully navigated the challenges of opening a second location, expanding further often becomes more efficient and less daunting. The experience gained, ranging from site selection and staffing to replicating operational systems and marketing strategies, helps streamline future openings. Lessons learned from the initial expansion help reduce or avoid costly missteps and allow for more confident, scalable growth.

2. Diversification of services

Single-service med spas, or those with just a few services — no matter how profitable — face challenges in today's market. Buyers now expect full-line offerings that appeal to a range of clients and their needs.

In no particular order, the most valuable med spa businesses offer most if not all of:

• Neurotoxins (e.g., Botox, Daxxify)
• Dermal fillers and advanced injectables
• Laser skin rejuvenation and resurfacing
• Hair removal and restoration
• Body contouring and fat reduction
• Hormone therapy and hormone replacement therapy (HRT) monitoring
• IV hydration and vitamin drips
• Medical weight loss
• Skincare product retail

Med spas must begin preparing for the next wave of wellness treatments, with peptides likely to take a leading role. These small proteins act as signals in the body, helping to boost collagen, burn fat, build muscle, and support healing. While often delivered through injections, peptides are also available in topical creams and oral supplements. Med spas are increasingly using them to address a wide range of client goals, including smoother skin, fuller hair, weight loss, better sleep, hormone balance, and improved energy. Popular peptides (e.g., CJC-1295, BPC-157, GHK-Cu) are becoming integral components of personalized plans designed to enhance both appearance and overall well-being. As more clients seek treatments that go beyond aesthetics to support full-body health, med spas that integrate peptide therapy will be better positioned to meet this rising demand.

Another important consideration is that med spa clients are gravitating toward "less is more." That means fewer visits, longer-lasting results, and little to no recovery time. That also means med spas need to stay up to date on the latest injectables, skin treatments, and fat reduction technologies. Non-invasive therapies are in especially high demand, and products must be regularly updated to reflect new innovations.

3. Investment in technology and automation

Clients turn to med spas not only for results, but for a sense of ease, confidence, and personalized care. That experience begins well before treatment. Top-performing med spas deliver on this expectation by using digital platforms for scheduling, intake, consents, communication, and payment, making it easy for their clients to learn about, access, and receive services. Online calendars that span multiple locations offer added flexibility, reinforcing the sense of convenience and control clients are seeking.

Beyond improving the client journey, the use of technology to achieve greater automation helps reduce administrative workload, aids in controlling staffing costs, and supports more efficient operations that translate to increased profitability.

4. Recurring business and retention strategies

Most clients visit their med spas of choice monthly, or at least every few months. Successful businesses take steps to maximize this regularity through the likes of memberships, loyalty programs, and bundled packages. Communication tools such as:

• E-newsletters
• Text message (SMS) reminders
• Exclusive event invitations
• Targeted promotions

… all help drive rebooking and reengage inactive clients. These mechanisms also support cross-selling: for example, a client enrolled in a weight loss program may be introduced to contouring, skin tightening, or hormone optimization services. Clients should always be aware of new offerings, especially those that support their existing goals or encourage them to think about new objectives.

5. Website, SEO, and digital advertising

A med spa's digital front door can matter as much as the physical one. A well-structured, mobile-friendly website with online booking, client education, and visible testimonials can significantly improve conversion. Search engine optimization (SEO) and pay-per-click campaigns can help capture demand and drive new leads. Websites should be updated frequently to reflect new services, products, trends like peptides and the next wave of GLP-1 medications, as well as testimonials supported by photos and videos.

6. Social media presence

Platforms like Instagram, TikTok, YouTube — and Facebook, which remains relevant for certain client segments — continue to shape client expectations and serve as influential sources of information, inspiration, and business and service discovery. Many younger clients find their med spa provider on social media before visiting a website. There is a rising influx of clients in their 20s, driven by social media and shifting beauty norms. Spas must consistently post:

• Client testimonials
• Before-and-after photos
• Treatment walkthroughs
• Practitioner spotlights
• Service-specific videos
• Location tours

This content builds trust and inspires bookings. Many top-performing med spas are offering free or discounted services to influencers and local celebrities in exchange for social posts, a strategy shown to often yield a strong return.

7. Online reviews and reputation management

Prospective clients vet providers by reading reviews. A few negative posts can deter dozens of prospects. Strong med spas proactively solicit Google and Yelp reviews, monitor their profiles, and respond to feedback professionally. Tools that automate these requests and monitor platforms can help protect and elevate brand reputation without requiring significant manual labor.

8. Interior and exterior aesthetics

First impressions matter. Clients expect med spas to look and feel modern, clean, and upscale. Many high-performing locations resemble boutique hotels or ambulatory surgery centers. Design is not just cosmetic; it reflects a med spa's brand, quality, and safety standards. Every detail, from landscaping and signage to lighting and treatment room finishes, should consistently tell a story of professionalism, cleanliness, and comfort.

9. Physician partnerships and referral networks

In markets with physician referral potential, building those relationships can expand a med spa's client base, especially for services like hormone therapy, weight loss, or skin conditions that overlap with dermatology or internal medicine. Some med spas also bring physicians on board as medical directors or brand ambassadors. This relationship can lend credibility and ensure compliance with state-specific supervision rules.

10. Staff training and certifications

While a med spa's services may attract clients initially, it is the staff who often bring them back through engagement, skill, professionalism, and the quality of the relationships they build over time. Buyers look for teams with certifications in their specialty areas, ongoing training programs, and low turnover. Skilled staff enable more efficient and effective expansion of services and drive client retention. Training in cross-selling, such as suggesting skin tightening to weight loss patients, can significantly lift revenue per visit.

Additionally, having a licensed medical director (and clear clinical oversight protocols) is essential, particularly for GLP-1 prescriptions, hormone therapies, and emerging treatments like peptides.

Integrating Weight Loss into the Bigger Picture

Weight loss services, particularly GLP-1 programs, still drive med spa traffic and generate strong revenue. But today's best med spas treat these programs as part of a broader wellness journey. As clients lose weight, they need support in other areas:

• Body sculpting to address loose skin
• IV therapy and nutritional counseling to support metabolism
• Hormone balancing for longer-term success
• Skin rejuvenation to match new body confidence

Cross-selling these services increases client value and improves outcomes. Looking ahead, next-generation GLP-1s — both injectable and oral — as well as peptide-based therapies, are likely to drive further change. Med spas that stay informed, anticipate these developments, and are prepared to launch supporting programs both compliantly and competitively will continue to stand out.

A Positive Transaction Outlook for Med Spa Owners

The med spa sector remains highly attractive to strategic and financial buyers. Demand for self-care, aesthetics, and preventive health is not going away. But the nature of a "transaction-ready" med spa business has evolved.

Buyers of med spa are now looking for strong fundamentals, including scalable operations, diversified services, a loyal client base, committed staff, and strong digital infrastructure. They want a brand, not just a business.

At VERTESS, one of the leading healthcare mergers and acquisitions companies, we specialize in helping med spa owners evaluate their readiness for sale, identify opportunities to strengthen their market position, develop a business exit strategy, and execute successful transactions. Whether you are thinking about a transition this year or laying groundwork for the future, the right plan — and the right team — can make all the difference.

If you are a med spa owner considering a sale or just want to better understand your business's value, reach out. We're here to help you explore what is possible for your med spa.

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Alan J. Hymowitz, CM&AA

During the past decade I have facilitated numerous, diverse M+A transactions in the pharmacy marketplace across the country, as well as providing strategic consultation to national pharmacies and similar organizations. Prior to becoming an M+A advisor, I was a “hands on” owner and manager in the pharmacy and home infusion healthcare marketplace for over 15 years, and successfully sold my pharmacy to a national company after growing and diversifying our income streams in a very competitive market. My specialties in the pharmacy and home infusion marketplace include long term care, retail pharmacy, specialty pharmacy, and home healthcare, and I have attained the URAC Accreditation and Specialty Pharmacy Consultant designations, in addition to other recognition. My educational background includes a Bachelor of Arts from Rutgers University and a Master of Arts from the John Jay College of Criminal Justice.

We can help you with more information on this and related topics. Contact us today!

Email Alan Hymowitz or Call: (818) 468-7554.