By Published On: January 25, 2021

Members of the FOCUS Healthcare team counted approximately 25 closed dermatology transactions in 2020. Of those, fifteen were for small single-dermatologist practices. Ten deals were for two-physician dermatology 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.

To learn more about our healthcare investment banking services or to discuss your specific situation with no obligation please feel free to call.  We are happy to share our knowledge and help you understand your options. All conversations are strictly confidential.

Photo: Eric YetterEric Yetter

FOCUS Managing Director and Healthcare Team Leader

Direct: 615-477-4741

 

Eric Yetter is an investment banker focused on healthcare. His practice includes healthcare provider services, home health and hospice, and behavioral health. Mr. Yetter has completed a variety of healthcare transactions, many with private equity firms and PE-backed companies. His past clients include leading physician groups, healthcare facilities, and institutional healthcare investors. Mr. Yetter founded Physicians First in 2016, recognizing the emerging need for investment banking and advisory services for owners of physician practices, surgery centers and clinical businesses. The next four years saw record levels of physician-owner M&A activity and Physicians First became one of the nation’s most active advisors for transactions between private equity firms and medical practices. In 2021, Mr. Yetter agreed to merge Physicians First with FOCUS and lead the firm’s healthcare team. Mr. Yetter also has healthcare operating and investing experience. He was an early executive at Covenant Physician Partners (previously Covenant Surgical Partners), an acquirer and operator of ambulatory surgery centers and physician practices. The company built and operated an outsourced laboratory, an anesthesia business, and a revenue cycle management company. Covenant has grown into a major player in healthcare services and is currently backed by private equity firm KKR. Prior to Covenant, Mr. Yetter held operating roles at Volkswagen Group of America and Brainlab, Inc., an image guided surgery company. While at Brainlab, Mr. Yetter worked with leading neurosurgeons and hospitals to implement cutting edge technology and improve patient outcomes. Mr. Yetter is a licensed attorney (currently inactive) and earned JD and BS degrees from Vanderbilt University, graduating with high honors. He is a FINRA licensed investment banker.