About Dan Humke | How the Med Spa Sale Process Works

Your Broker

Dan Humke

Senior Business Broker · Sunbelt Business Brokers · Denver, CO

Dan Humke works exclusively with business owners who are considering selling — never buyers. That matters because the interests of a seller and a buyer are fundamentally different, and Dan's job is to protect yours from the first conversation to the day you close.

He works with a limited number of clients at any given time. That's not a sales pitch — it's how he operates. Selling a business is a major financial event, and it requires real attention. Dan doesn't manage a high-volume listing pipeline. He manages your deal.

His background includes years of transaction experience across the Denver metro and Front Range, with particular depth in cash-pay healthcare and service businesses — the same fundamentals that drive med spa valuations. He understands recurring revenue models, membership programs, and the operational factors that buyers use to determine what your practice is actually worth.

Dan will give you an honest assessment of your situation — including if the timing isn't right yet and you'd benefit from a year of positioning first. That kind of candor is rarer than it should be in this business.

CO Broker License #FA 100108434

Senior Business Broker, Sunbelt Business Brokers

Seller-Side Representation Only

Denver / Highlands Ranch · Serving All of Colorado

720-428-1294

Working with Sunbelt gives Dan access to one of the largest networks of pre-qualified buyers in North America — including private equity groups, industry consolidators, and strategic buyers actively looking for med spa acquisitions.

The Process

From first conversation to closing day

Here's exactly what selling your med spa looks like when you work with Dan. No surprises, no pressure, no obligation at any step.

Free confidential valuation

Everything starts here — and nothing moves forward without an NDA signed first. Dan reviews your financials, walks you through how buyers will evaluate your practice, and gives you a realistic range of what it's worth in the current market. This is a real analysis, not a sales pitch. There is no cost, no commitment, and no obligation to list with anyone. If you decide the timing isn't right, the conversation ends there and stays completely confidential.

Listing preparation and the CIM

Once you decide to move forward, Dan prepares a Confidential Information Memorandum — or CIM. Think of it as a professional business profile: three to five years of financial history, an overview of your services and patient base, your team structure, equipment, lease details, and a description of what makes your practice worth buying. This is the document serious buyers evaluate before making an offer. A well-prepared CIM directly affects the quality of interest you receive.

Buyer outreach and qualification

Dan markets your practice to pre-qualified buyers — including PE-backed platforms actively acquiring med spas — without revealing your identity or location publicly. Every prospective buyer signs a non-disclosure agreement before seeing your CIM. Your staff, clients, and competitors won't know you're exploring a sale. Dan vets buyers for financial capability before you ever take a call, so your time goes toward conversations with serious parties only.

Negotiation, due diligence, and close

When offers arrive, Dan helps you evaluate them — not just on headline price, but on deal structure, earnouts, transition terms, and what you're actually walking away with after fees. He negotiates on your behalf, manages the due diligence process, and coordinates between your attorney, accountant, and the buyer's team to keep the deal moving. From the day you list to the day you close typically takes 6–9 months, though some transactions move faster depending on the buyer and deal complexity.

Buyer Intelligence

What buyers look for in a med spa — and what moves the price

Understanding what buyers evaluate helps you see your practice through their eyes — and know where you stand before you go to market.

Owner independence

The single biggest driver of your multiple. A practice where the owner performs 70% of the injections is riskier to a buyer than one with a trained team of injectors and aestheticians. Even partial independence — a practice manager who handles operations — meaningfully improves your valuation.

Recurring membership revenue

Buyers pay a premium for predictable cash flow. A membership program with 30%+ of revenue coming from monthly subscribers is a major value driver — it tells buyers the revenue doesn't disappear if a new owner steps in. Roughly 85% of med spas now offer memberships; buyers can tell which ones drive real recurring revenue and which are nominal.

Clean, consistent financials

Three years of clean, consistent tax returns and P&L statements reduce perceived risk. Buyers add back legitimate owner expenses — your salary, personal vehicle, continuing education — to calculate your true SDE. A good CPA who understands business sales can make a real difference here.

Diversified client base

Practices where no single client accounts for more than 10–15% of revenue feel safer to acquire. If you have a handful of high-spend VIP clients who are deeply loyal to you personally, buyers will ask questions about what happens to that revenue after the transition.

Documented systems and compliance

Treatment protocols, employee training, medical director agreements, OSHA compliance, and documented operating procedures all signal to a buyer that your practice can run without you. Buyers also look carefully at medical supervision structure and regulatory compliance — this matters especially to institutional acquirers.

Equipment condition and service mix

Well-maintained, current equipment — lasers, body contouring devices, skin rejuvenation systems — holds value and reduces capital expenditure risk for the buyer. A diversified service menu that goes beyond injectables is attractive because it reduces dependence on any one treatment category.

Common Questions

What med spa owners ask before they start

No — not unless you choose to tell them. The entire process is confidential from the beginning. Dan signs an NDA before reviewing any financial information, and every prospective buyer does the same before seeing your CIM. Your staff, clients, vendors, and competitors will not know you're exploring a sale. The transition conversation happens after a deal is signed, on a timeline you control.

The starting point is your Seller's Discretionary Earnings — or SDE. That's your net profit plus your owner salary and any personal expenses run through the business. We then apply a market multiple to that number based on the quality of the practice. For single-location med spas, that multiple typically ranges from 2.7x to 3.5x SDE, adjusted up or down based on factors like owner independence, membership revenue, client concentration, and how documented your systems are. The online valuation tool on this site walks you through exactly that calculation.

It's never too early. In fact, getting a valuation 12–24 months before you want to sell is often the most valuable thing you can do. It tells you where you stand, what's moving your multiple up or down, and what a focused year of changes could mean for your final number. Many owners are surprised to find they can add significant value just by making operational adjustments before going to market. There's no obligation, no pressure, and no cost to find out where you stand today.

Most transactions close within 6 to 9 months of listing. The time breaks down roughly like this: one to two months to prepare the CIM and go to market, two to four months to surface qualified buyers and reach a letter of intent, and then two to three months for due diligence and closing. Some deals move faster — particularly when a motivated buyer and a clean set of financials are involved. Others take longer if the deal is complex or financing takes time.

Seasonal variation is very common in the med spa industry — holiday treatment packages, summer body contouring cycles, and slower summer months are all normal. Buyers account for this by looking at trailing twelve-month revenue and multi-year averages rather than any single month or quarter. What matters most is the annual trend line. If your revenue is growing year over year, seasonal swings are much less of a concern. A strong Q4 followed by a quiet January is a pattern buyers understand and underwrite around.

No. The first conversation is just a conversation. You don't need any advisors in place, and you don't need to have your financials organized before you reach out. Dan can help you identify what documentation you'll eventually need and give you a sense of what the process looks like before you commit to anything. When the time comes, he'll work alongside your existing CPA and attorney — or refer you to professionals who work regularly with business transactions if you don't have them.

The valuation is free. There's no upfront cost and no retainer. Dan is paid a success fee at closing — a percentage of the sale price, paid only if and when your business sells. That structure means his incentive is to get you the best possible outcome, not to put a transaction together quickly or at any price.

How the process works — and why sellers choose to work with us