Acquisition Underwriting Model — Med Spa & Aesthetics Edition

Two things sink med spa deals, and both are invisible on a broker's summary.

The first is deferred revenue. Prepaid packages and memberships are services already sold and not yet delivered. They are a liability that must come off the price or sit in escrow — not a cash balance you inherit. First-time buyers routinely treat it as working capital and overpay by six figures.

The second is that the owner is often the lead injector. If they produce 40% of revenue, you are buying their calendar, and it walks out at close unless you have secured them.

Ten linked tabs. You type in one of them.

Inputs, SDE Bridge, Sources and Uses, Debt Schedule, Projections, DSCR, Returns, Summary — plus an Industry Diligence tab built for this sector.

WHAT'S SPECIFIC TO AESTHETICS

Device depreciation and replacement capex set at realistic levels, because lasers and energy devices obsolete fast and carry heavy finance obligations. A manager salary input scoped for the medical director plus practice manager, not a single replacement hire. Add-back lines for device write-offs and conference travel. A worked $1.65M example at 3.36x SDE clearing 1.28x DSCR — the tightest of the five editions, which is honest for this sector.

THE DILIGENCE TAB

Ten items to verify. Unredeemed packages and memberships. Revenue by provider with the owner isolated. Provider contracts, non-competes and retention plans. State medical director and ownership requirements, since many states restrict who may own a medical practice. Device age, warranty and remaining useful life. Lease or finance obligations on devices, often substantial and not always assumable. Patient retention and repeat visit rate. Revenue mix across injectables, devices and skincare. Malpractice coverage, claims history and tail for work performed before close.

THE SBA RULES, BUILT IN

The 10% minimum equity injection, the full-standby seller note rule, correct guaranty fee tiering, three pass/fail tests, and the maximum price the cash flow supports versus your offer.

WHO IT'S FOR

Buyers acquiring med spas and aesthetics practices, roughly $600K to $5M, financed with SBA 7(a).

WHAT IT ISN'T

A financial model, not advice. Not a quality of earnings report, not a certified valuation, not tax or legal counsel. Nothing here is medical or regulatory guidance — verify your state's requirements with counsel. Sector multiple ranges are rules of thumb, not market data. Rates current to November 2026 — confirm with your lender.

FORMAT

Excel (.xlsx). Instant download. Arrives with a fully worked example deal.