Advisory Drives Cashflow Improvement, Secures Capital from Q2 Business Capital
Radiance Medspa will enter a new era of growth as a category leader in non-surgical cosmetic medicine though its engagement with Auctus Capital Partners — a leading financial services and investment banking firm that has announced its role as exclusive advisor, mapping strategy, restructuring debt and securing capital that enables the business to increase free cash flow significantly. The transaction was led by Auctus and funding was provided by Q2 Business Capital.
“We are extremely impressed with Auctus Capital Partners. Its team offered services and counsel far beyond the capital raise transaction, guiding us to a pivotal position for growth and a financial turning point for the company,” said Radiance Medspa Owner and Director Stephanie Schlageter, whose endeavor to business success is widely recognized.
Since the company’s inception in 2006, Radiance Medspa has experienced exponential growth, although the first few years were not without challenges. As a result of a franchisor who abandoned the company and investors, Radiance Medspa initially opened with overestimated revenue projections, underestimated start-up costs and working capital requirements, as well as unrecovered franchise fees. With the franchise out of the picture, Radiance continued on its own by establishing its brand and customer base and acquiring the equipment, technology, and resources necessary for medical aesthetic skin and body care. The company is now ranked in the top 200 BOTOX® and JUVÉDERM® facilities in the US, as well as being named on the Inc. 5,000 list of America’s Fastest Growing Companies three years in a row.
“We are thrilled to be working with women in business and it was a pleasure supporting Radiance Medspa,” said Muhammad Azfar, CEO and Managing Partner of Auctus Capital Partners. “Radiance is set up for great success and can now devote increased cash flows to expansion and take advantage of opportunities in the medical spa space, which is a more than $8 billion industry that has experienced double-digit growth since 2010.”
Working with Auctus’ satellite office in Palm Beach, Florida and headquarters in Chicago, Radiance Medspa restructured its balance sheet, reduced the amount of debt owed to previous lenders, and significantly increased the amount of cash flows post operations. Auctus also assisted in raising capital for the client’s ad-hoc business needs.
“When you’re ready to grow, it’s important to turn to the right people,” Schlageter added. “My company was looking to increase profits — and Auctus Capital Partners analyzed operations, finances and business strategy to identify pain points and opportunities. From this, they were able to develop a strategy to address both my short-term and long-term business needs and they reached out to multiple sources of capital to secure the funding structure and terms that suited me and my company.”
For more information, visit www.radiancemedspa.com.
For Medspa Industry Insights, visit The Medspa Boom is Bankable: Industry Insights + Success Story.