In a recent episode of "The Great Friends Podcast," hosted by John Wheeler, CEO of Alpha Aesthetics Partners, listeners are treated to an insightful discussion with Tedd Van Gorden, an expert in mergers and acquisitions (M&A) in the aesthetics industry. Van Gorden, working at Skytale, a broker and investment banking firm specializing in aesthetics, brings a wealth of experience from his previous role in corporate finance at Ziegler and a long-standing career in M&A advisory.

This episode delves deep into the state of mergers and acquisitions within the aesthetics space. Van Gorden and Wheeler explore various aspects of the M&A process, including preparation and optimization of practices for transactions, the current market conditions, and common reasons why deals fall apart. It's an essential listen for anyone in the aesthetics industry, whether contemplating a transaction, having experienced one, or simply seeking to understand the dynamics of M&A activity in this sector.

One of the key takeaways from the conversation is the bullish trajectory of M&A in medical aesthetics, despite macroeconomic challenges like rising interest rates. Van Gorden sheds light on the continuous growth in the number and value of acquisitions, indicating the expanding scale of practices being acquired. He also discusses the significant interest from private equity in the med spa and plastic surgery sectors, driven by the industry’s robust growth and investment potential.

Another interesting point is the comparison between the consolidation trajectories of the med spa industry and the dental industry. Van Gorden highlights that, unlike dental, the med spa sector is still in its early stages of consolidation, offering a long runway for growth and investment.

Moreover, the episode touches upon the future growth of the medical aesthetics industry, with projections showing substantial year-over-year increases. Van Gorden’s expertise offers a comprehensive view of the industry’s financial landscape, including the consolidation percentage, growth rate, and the scale of operations within the med spa sector.

Listeners also gain insight into the anatomy of a successful transaction from the seller's perspective. Van Gorden emphasizes the importance of having a clear understanding of one's goals for selling, which influences every stage of the M&A process.

This episode of "The Great Friends Podcast" not only provides a deep dive into the M&A landscape of the aesthetics industry but also equips listeners with the knowledge and tools to navigate this complex and dynamic field. Whether you're a seasoned professional or new to the industry, the conversation between John Wheeler and Tedd Van Gorden offers valuable insights into the business side of aesthetics.