Quality of Earnings and CFO services for spas and med spas
Gift cards, series packages, and memberships are sold today and delivered later. We measure what's still owed, convert the books to accrual, and show earnings by service and provider.
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Med spas are consolidating; day spas keep growing
- More than 90% of med spas are independently owned, and 2025 deal activity was mostly add-on acquisitions by platforms. Source
- U.S. spa industry revenue reached $23.5 billion in 2025, up 4.2%. Source
- Buyers focus on prepaid packages, memberships, gift card liabilities, and cash-to-accrual conversion. Source
- Since October 1, 2026, SBA 7(a) acquisitions of $3 million or more need an independent Quality of Earnings, and lenders size the loan on its normalized earnings. The rule explained →
We work with lenders and buyers in Utah, Denver, Phoenix, Dallas-Fort Worth, Boise, Las Vegas, and nationwide.
Revenue per locationSpend per visitVisit frequencyProvider utilizationClient retentionGift card breakage
Unredeemed gift cards and packages are a liability, not profit, until the service is delivered.
What buyers and lenders test in a spa or med spa QoE
Gift cards and series
Outstanding balances by issue date, redemption patterns, and breakage.
Memberships
Monthly benefits owed, rollover credits, and cancellations.
Cash to accrual
Most spas run cash-basis books. Lenders and buyers need accrual earnings.
Provider compensation
Commissions, tips, and wage classification by provider and location.
Service mix and discounting
Margin by service line and the real cost of promotions.
Clinical structure (med spas)
Medical director and management services arrangements that affect who earns the revenue.
Spas & med spas QoE: what's included
- Gift card, series, and membership liability analysis
- Cash-to-accrual conversion
- Location and service-line margins
- Provider compensation and wage classification review
- Working capital peg reflecting prepaid liabilities
Spas & med spas add-ons
| Gift card, package, and membership liability analysis | $2,000 |
| Each location over three | $1,500 |
| Each additional legal entity | $2,500 |
| Retail inventory testing | $2,500 |
Fees by deal size
| Purchase price / EV | QoE fee |
|---|---|
| Main Street QoE: owner-run deals under $1.5M | $7,500 |
| Under $3M | $11,500 (sell-side $9,000) |
| $3M to $4M | $12,500 |
| $4M to $5M | $14,500 |
| $5M to $10M | $19,500 |
| $10M to $15M | from $26,500 |
| Lower middle market & PE add-ons | typically $25,000 to $70,000 |
Larger deals are quoted from revenue, entities, inventory, and report format. Pre-LOI earnings screen $1,950. All fees →
Before an LOI, run the seller's numbers through our free add-back sanity check. Terms like SDE, cash proof, and DSCR are explained in the QoE glossary.
Where spa owners lose money
- Gift card and package balances nobody can reconcile
- Commission plans that overpay on discounted services
- Cash-basis books that hide margin by location
- Booking system and accounting that don't agree
Priced for your industry
Most spas need an accrual close and a clean liability schedule before they need strategy.
Start with a $2,500 finance diagnostic, credited to your first month. Interim CFO or controller coverage is also available, part time from $10,500/mo or full time.
Books & close
- Monthly bookkeeping and reconciliations
- Accrual close by business day 10
- Monthly financial package
- Quarterly review call
Controller
- Everything in Books & close
- KPI dashboard for your industry
- Payroll, AP, and sales tax oversight
- Quarterly 13-week cash forecast
- Monthly review call
CFO
- Everything in Controller
- Location and provider profitability
- Commission and payroll review
- Booking-system-to-GL reconciliation
- Monthly CFO meeting
Fixed monthly fees, month to month after three months. Day-to-day bookkeeping may be done by trained staff working to our checklists, always with CPA review and sign-off by Edwin van Stam. Talk about the right package →
Spas & med spas engagements Edwin has led
- QoE for a multi-location spa, including gift card, series, and membership liability analysis and a payroll wage classification review
Includes engagements Edwin performed with prior and affiliated firms. Client names are confidential.
Spas & med spas questions
Does an SBA loan for this kind of acquisition need a QoE?
Under SBA SOP 50 10 8.1, a 7(a) change-of-ownership loan with a business purchase price of $3 million or more needs a Quality of Earnings, and the lender sizes the loan on the QoE's normalized earnings. Below $3 million many lenders still ask for one. Check your deal →
How do gift cards affect the sale price?
Unredeemed balances are services the buyer will deliver without being paid again. They typically reduce working capital or the price, so measuring them early avoids a late surprise.
Do you work with med spas?
Yes. In addition to the spa analysis, we look at provider compensation and the medical director and management services structure, which affects how revenue and costs are reported.
Buying, selling, or running a spa?
Buying, financing, or selling? Start with a QoE conversation. Running the business? Start with a finance diagnostic.