Our recently published white paper examined all core aspects of private equity’s investment in ophthalmology practices and surgery centers from 2012 – 2019. Listed below are our key findings and 2020 outlook:
- The end goal objectives of early investors in ophthalmology are being achieved through successful recapitalization at high EBITDA multiples, bolstering continued development by participating investors.
- The U.S. ophthalmology consolidation market is signaling a transition to a more stable and predictable Network Growth phase.
- Some early private equity entrants are evaluating their position and long-term strategy, concerned that they may not be able to grow as expected. This will likely result in sponsor-to-sponsor mergers.
- Strategic small and medium add-on acquisitions will dominate consolidation activity in 2020.
- There are still geographic areas with great opportunity but little activity to date, such as Texas and multiple areas on the West Coast. Expect to see a lot of activity in these areas in 2020 including large platform acquisitions.
- There is a growing consensus that EBITDA multiples are at their peak. Most investors are proceeding cautiously with multiples at that level.
- Potential investors that have been considering an entry into ophthalmology are now considering an alternative investment in gastroenterology, orthopedics, and urology platforms where minimal activity has occurred.
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.
Eric 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.
