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Ophthalmology Industry Trading Multiples and Recent Buyers

Posted on June 3rd, 2019 by CIG

Topic: Business Advisory Services, Medical Practice Management, Performance Management, Valuation

In the first part of our look at merger and acquisition activity in the ophthalmology industry, we examined ophthalmology practice valuation strategies and the buying/selling process.  In the second part, we look at the trading multiples that ophthalmology practice sellers could expect to see in today’s market, and a few of the recent larger transactions by private equity players who now view ophthalmology practices as valuable part of the continuum of care, a new target with its own unique strengths and growth opportunities.

Trading multiples in today’s ophthalmology market:

  • Generally, smaller practices are being acquired from 7x to 9x EBITDA*
  • Platforms are trading anywhere from 11x to 15x EBITDA*

Recent mergers and/or acquisitions in today’s ophthalmology market**:

It is advised to contact a professional to help guide you throughout the sale process.  CIG Capital Advisors’ Business Advisory Services professionals can help you determine which valuation method is most appropriate for your unique practice and guide you through a potential buying or selling scenario.  Schedule a complimentary consultation with a CIG professional today to begin the valuation process for your ophthalmology practice.

*Source: https://www.stout.com/en/insights/industry-update/eyes-ophthalmology-ma-opportunities/
**Source: https://www.mcguirewoods.com/client-resources/Alerts/2019/2/2018-physician-practice-consolidation