Dermatology Industry Trading Multiples and Recent Buyers
Posted on June 3rd, 2019 by CIG
In the first part of our look at merger and acquisition activity in the dermatology industry, we examined dermatology practice valuation strategies and the buying/selling process. In the second part, we look at the trading multiples that dermatology 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 dermatology 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 dermatology market*:
- 3-5x EBITDA for solo practices
- 5-7x EBITDA for small groups
- Up to 13x EBITDA for large, integrated, multi-site groups
Recent mergers and/or acquisitions in today’s dermatology market**:
- Forefront Dermatology acquires Advanced Dermatology & Skin Care Centre and Inverness Dermatology in Oct. 2018
Forefront Dermatology is pleased to announce the addition of Advanced Dermatology & Skin Care Centre and Inverness Dermatology to its expanding dermatology group practice. This marks Forefront Dermatology’s first practices in Alabama and Florida.
- United Derm Partners acquires Sierra Skin Institute (addition to Skin Care & Dermatology Institute group) in Nov. 2018
United Derm Partners, a physician services organization focused on the dermatology sector, announced the continued expansion of Skin Cancer & Dermatology Institute (SCDI), a United Derm Partners affiliated group, with the partnership of Sierra Skin Institute.
- Advanced Dermatology and Cosmetic Surgery acquires Aesthetic Dermatology Center in Jan. 2018
Advanced Dermatology and Cosmetic Surgery, the nation’s largest dermatology practice, acquires dermatology clinic in Vero Beach, Florida.
- United Derm Partners acquires Bend Dermatology in Feb. 2018
Partnership adds five locations, five physicians to United Derm family of practices. Deal positions practice for growth and United Derm for further expansion in Oregon.
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.