2020 Marked by Mostly Small Deals in Dermatology
Physicians First counted approximately 25 closed dermatology transactions in 2020. Of those, fifteen were for small single-dermatologist practices. Ten deals were for two-derm practices, and five deals were for three- to six physician groups.
As mentioned in other posts, we believe that private equity's dermatology consolidation has matured. Limited large deals are taking place, and instead groups are completing small add-on acquisitions.
There are still many large and medium groups who are waiting for the right partner. Many have been working to grow on their own and prepare for a sale. For those groups, we believe the timing might be right in 2021. Right now, there is a very competitive market for these strong remaining practices. On a macro level, we seem to be in a strong economic period with potential negative (for sellers) tax changes on the horizon.
Physicians interested in a 2021 transaction can learn more about Physicians First and our investment banking solution for dermatology practices here.
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