Dermatology saw its first private equity investment in 2011 which sparked a decade-long wave of national consolidation in the space. Most recently, HEP Fund’s partnership with New York-based MD Alliance Solutions in August of 2020 brought the total PE-backed platforms in the space to over 30.
We’re currently seeing strength in capital markets driving strong activity both in terms of add-on acquisitions (PGP has advised on two dermatology transactions already this year and expects to close two more before year end). At the same time sponsors are seeing an opportunity to transact in the market and currently OMERS-backed Forefront Dermatology is in the market and will soon transact with a larger private equity group to continue its growth trajectory.
While dermatology has been one of the more heavily consolidated specialties (seeing over 15 transactions in the last 6 months alone), there is still significant runway within the market as groups compete for key assets and market share.
Select Recent Private Equity Transactions in the Dermatology Space
| Date | Target | Platform | PE Sponsor | State |
| June 2021 | Sperling Dermatology* | Forefront Dermatology | OMERS | New Jersey |
| June 2021 | Goodman Dermatology | Waters Edge/Riverchase | Gryphon Investors | Georgia |
| May 2021 | Village Dermatology | Forefront Dermatology | OMERS | Alabama |
| May 2021 | Spectrum Dermatology | Pinnacle Dermatology | Chicago Pacific Founders | Arizona |
| April 2021 | Ariano Dermatology | Pinnacle Dermatology | Chicago Pacific Founders | Illinois |
| February 2021 | Advanced Dermatology Associates* | MDAlliance | Health Equity Partners | New York |
| January 2021 | Carolina Skin Care | Anne Arundel Dermatology | Ridgemont Equity Partners | Florida |
| January 2021 | Sunflower Dermatology | Epiphany Dermatology | CI Capital Partners | Texas |
| January 2021 | Virginia Dermatology & Skin Care Center | Pinnacle Dermatology | Chicago Pacific Founders | Virginia |
| December 2020 | DeSoto Dermatology | Epiphany Dermatology | CI Capital Partners | Texas |
| December 2020 | Nielson Dermatology | Advanced Dermatology & Cosmetic Surgery | Audax Private Equity | Florida |
| December 2020 | Colorado Dermatology Specialists | Advanced Dermatology & Cosmetic Surgery | Audax Private Equity | Colorado |
| October 2020 | Harkaway Center for Dermatology and Aesthetics | Schweiger Dermatology | LNK Partners | New Jersey |
| October 2020 | Dermatology Associates of Montgomery | Advanced Dermatology & Cosmetic Surgery | Audax Private Equity | Alabama |
| September 2020 | Dermatology & Plastic Surgery* | Forefront Dermatology | OMERS | Florida |
| September 2020 | SkinSmart Dermatology | DermCare Management | Hildred Capital Management | Florida |
| August 2020 | MD Alliance | MD Alliance | Health Equity Partners | New York |
| August 2020 | SkinCare Colorado | Epiphany Dermatology | CI Capital Partners | Colorado |
| July 2020 | Dermatology & Cosmetics Surgery Associates | Anne Arundel Dermatology | NMS Capital | Maryland |
| June 2020 | Skin and Laser Specialists of NY & NJ | Schweiger Dermatology | LNK Partners | New York & New Jersey |
About Our Firm
Physician Growth Partners (PGP) is a transaction advisory firm which represents independent physician groups in transactions with private equity
Differentiated Healthcare Transaction Advisors:
- Senior partner involvement at every stage of the process
- Extensive dermatology transaction experience
- Unmatched relationships with all key private equity and strategic buyers interested in Dermatology
- Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation
The post Dermatology Market Update appeared first on Physician Growth Partners.
source https://physiciangrowthpartners.com/uncategorized/dermatology-market-update/
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