Published February 2024
The aesthetics medicine space has experienced a tremendous amount of growth in recent years, which has caught the attention of institutional investors looking to allocate capital in high growth sectors exhibiting strong industry tailwinds.
Given its healthcare and consumer-focused elements, the aesthetics space has attracted both retail and healthcare private equity funds with a thesis on capturing a widely expanding addressable market. The recent proliferation of aesthetics-focused businesses has created a hyper -fragmented business landscape that is ripe for consolidation and private equity investment. This confluence of fragmentation and accelerating demand, along with the highly scalable nature of the business, has put an investor spotlight on the category that outshines most other spaces within the private investment landscape.
Private equity, being a relatively new stakeholder in the aesthetics ecosystem, has already invested billions of dollars to professionalize and consolidate a market that is still very early in its investment lifecycle. Although the space has only been consolidating for five years, the pace of transaction activity has accelerated meaningfully since the pandemic as newly formed platforms (businesses backed by private equity funds) compete for market share through M&A (mergers and acquisitions).
This new phase of aesthetics medicine has created significant economic opportunities for business owners looking to monetize all or some of their equity and/or accelerate the growth trajectory of their business through strategic partnerships. There are myriad options afforded to business owners today and it’s important to vet potential suitors to ensure philosophical and strategic alignment before executing a transaction.
This white paper aims to unpack some of the investment activity that has transpired while exploring some of the characteristics within the space that investors find most attractive.
- Investor Thesis – Compelling Supply & Demand Dynamics
- Investor Thesis – Attractive Operating Model
- Surveying the Aesthetic Medicine Landscape
- Private Equity Presence
- Valuation Drivers
- Partnership Considerations
- Emerging Trends
- Transactions Activity