Modern med spa reception area with clean white interior and natural light in Southern California

Case Study · Buy-Side

Med Spa Acquisition: $10,000 Out of Pocket for a $500K Business

A Southern California buyer was looking for a med spa under a $1M price point to serve as the anchor of a long-term rollup strategy. LCG found an opportunity with $275,000 in SDE at a $500,000 purchase price and negotiated a $100,000 seller note — allowing the client to close with just $10,000 out of pocket.

$500K
Purchase Price
$275K SDE
$10K
Out of Pocket
After $100K negotiated seller note
$100K
Seller Note
Negotiated by LCG to minimize buyer cash outlay
Rollup
Strategy
Anchor acquisition for 5-year rollup plan
SectorHealth & Beauty · Med Spa
RegionSouthern California
Buyer TypeStrategic Buyer (Rollup Play)
FinancingSBA + $100K Seller Note ($10K Out of Pocket)

Anchor Acquisition for a Multi-Location Rollup

The buyer, located in Southern California, was very particular about investing in the med spa industry. Their plan was to acquire an initial location as the foundation for a rollup play over the next 5 years. LCG typically doesn't advise going below a $1M price point, but this client had a clear thesis and was committed to the strategy.

Minimizing Cash Outlay Through Seller Financing

LCG found an opportunity producing $275,000 in SDE at a purchase price of $500,000. We negotiated a $100,000 seller note, which — combined with SBA financing — allowed the buyer to close with just $10,000 out of pocket. This preserved the buyer's capital for future acquisitions in their rollup plan.

By the Numbers

Deal outcomes that speak for themselves.

From a stalled search to a closed deal and a growing business — in less time than most searchers spend reviewing CIMs.

$10K
Out of Pocket
Minimal cash outlay to preserve rollup capital
$100K
Seller Note
Negotiated by LCG to reduce buyer cash at close
$275K
SDE
On a $500K purchase price
5 Yr
Rollup Horizon
Multi-location growth strategy

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