Case Study · Distressed Acquisition · Medical Spa

Acquisition of a Loss-Running Practice: From -$50K to +$100K Profit per Month in 14 Months

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Monthly Profit

At Acquisition

-$50K

lost every month

+$150K

→

After 14 Months

+$100K

profit every month

Distressed Acquisition

Financial Triage

Operations

Revenue Model

Culture Reset

The Situation

A Good Market, a Broken Business

A new operator acquired a med spa that was losing $50,000 every month.

Patient volume and the location were workable, but overhead was unsustainable, providers were scheduled with no regard for demand, and there was no financial reporting, KPI framework, or SOPs. We were brought in on day one.

Our Approach

What Was Broken, and How We Fixed It

The Problem

Labor, vendor, and lease costs far above benchmarks

→

Our Fix

An emergency P&L audit, renegotiated contracts, and rebuilt schedules

The Problem

No P&L review, budget, or financial visibility

→

Our Fix

A full KPI dashboard with weekly financial check-ins

The Problem

Providers scheduled without regard to demand

→

Our Fix

Schedules built around peak windows, with revenue-per-hour targets

The Problem

No SOPs for anything

→

Our Fix

A complete SOP library, defined roles, and daily huddles

The Problem

No consult framework, memberships, or retail

→

Our Fix

Value-based consults, a new menu, a membership program, and retail

The Problem

Low accountability and high turnover

→

Our Fix

A culture reset and leadership coaching for the new practice manager

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Financial triage and overhead

Conducted an emergency P&L audit in the first two weeks to identify the drivers of the monthly loss.
Renegotiated or terminated vendor contracts for injectables, consumables, device leases, and software.
Rebuilt provider and front desk schedules around verified demand and revenue-producing hours.
Implemented a monthly financial review with targets and variance analysis.

KPI framework and dashboard

Built full KPI tracking: labor margin, COGS, room revenue per hour, average ticket, provider productivity, membership enrollment, and conversion rates.
Introduced weekly financial check-ins with ownership to keep the turnaround on track.

Provider model

Rebuilt the provider schedule from scratch around verified peak booking windows.
Set minimum revenue-per-hour targets for each provider and treatment room.
Implemented provider performance tracking with a structured feedback cycle.

Operations

Created SOPs for intake, scheduling, consultations, clinical handoffs, retail recommendations, follow-up, and team communication.
Defined responsibilities and reporting structures for every position.
Established a morning huddle and end-of-day reporting cadence.

Revenue model

Introduced a value-based consultation framework built around full treatment plans.
Rebuilt the service menu with tiered pricing, signature packages, and high-margin service lines.
Launched a membership program from scratch.
Introduced a curated medical-grade retail program integrated into every patient interaction.

Culture and leadership

Trained the full team on brand standards, patient experience, and accountability from week one.
Coached the incoming practice manager on team management, performance conversations, and daily oversight.
Implemented a transparent recognition and accountability structure.

The Outcome

Results Achieved

+$150K

Monthly profit swing

+$100K

Profit every month

Months to turn it around

Metric

At Acquisition

After 14 Months

KPI Tracking

None

Full dashboard, weekly review

Operational SOPs

None

Fully implemented

Membership Program

None

Active, generating recurring revenue

Retail Program

None

Launched and integrated

“

A loss-running practice is not necessarily a bad acquisition. It is often a systems failure, not a market failure.

The Key Takeaway

Acquisition of a Loss-Running Practice: From -$50K to +$100K Profit per Month in 14 Months

A Good Market, a Broken Business

What Was Broken, and How We Fixed It

Results Achieved

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