Updated August 20, 2018. The June 2018 acquisition of Water's Edge Dermatology by Gryphon Investors was the eighth major investment by a private equity investor in the Florida dermatology market. Florida is on the leading edge of the consolidation that is accelerating among dermatology practices.
The Florida market provides an interesting case study for the following reasons:
The interactive map below shows the Florida office locations for eight dermatology companies that currently have or previously had private equity investors. We also included Integrated Dermatology's offices on the map; although it does not have a private equity investor, it is one of the most active acquirers of dermatology practices in the U.S. Phynet Dermatology is owned by a private equity group and has ties to Florida but we were not able to identify any office locations in the state.
The Cobble Hill Group provides M&A and valuation services to physician practices. For information about our firm or data for other states, please contact us at [email protected].
- Large, growing population - with an estimated population of 21 million people in 2017, Florida is the 3rd most populous state and the 5th fastest-growing in the U.S.
- High concentration of dermatologists - Florida has a higher than average number of dermatologists on a per capita basis, with 8.0% of the dermatologists and 6.4% of the population in the U.S.
- High penetration by private equity - According to a recent article published by the law firm McGuireWoods LLP, "Dermatology remains highly fragmented...with roughly only 5% of the industry currently consolidated." By contrast, Cobble Hill Group estimates that approximately 21% of dermatologists in Florida are now affiliated with a private equity backed company.
The interactive map below shows the Florida office locations for eight dermatology companies that currently have or previously had private equity investors. We also included Integrated Dermatology's offices on the map; although it does not have a private equity investor, it is one of the most active acquirers of dermatology practices in the U.S. Phynet Dermatology is owned by a private equity group and has ties to Florida but we were not able to identify any office locations in the state.
The Cobble Hill Group provides M&A and valuation services to physician practices. For information about our firm or data for other states, please contact us at [email protected].
Below is information regarding each company on the map. It is interesting to note that eight of the ten, including two with offices across the U.S., have their headquarters in Florida.
Advanced Dermatology & Cosmetic Surgery (ADCS)
Owner - Harvest Partners
Date Acquired / Invested - May 2016 (acquired from Audax Private Equity, which invested in 2012)
Headquarters - Maitland, FL (near Orlando)
Florida Offices - strong positions in several markets including Orlando, Tampa, Miami, and the Atlantic coast north of Vero Beach
Website - https://www.advancedderm.com/
Locations - AZ, CA, CO, FL, GA, MD, MI, NV, OH, PA, RI, SC, TX, VA, WY
Date Acquired / Invested - May 2016 (acquired from Audax Private Equity, which invested in 2012)
Headquarters - Maitland, FL (near Orlando)
Florida Offices - strong positions in several markets including Orlando, Tampa, Miami, and the Atlantic coast north of Vero Beach
Website - https://www.advancedderm.com/
Locations - AZ, CA, CO, FL, GA, MD, MI, NV, OH, PA, RI, SC, TX, VA, WY
Dermatology Medical Partners (DMP)
Owner - Tyree & D'Angelo Partners
Date Acquired / Invested - December 2015
Headquarters - Tampa, FL
Florida Offices - strong position in Tampa but has fewer offices in the region than ADCS
Website - http://www.dermmedpartners.com/
Locations - FL (website mentions 14 other states but no specific locations)
Date Acquired / Invested - December 2015
Headquarters - Tampa, FL
Florida Offices - strong position in Tampa but has fewer offices in the region than ADCS
Website - http://www.dermmedpartners.com/
Locations - FL (website mentions 14 other states but no specific locations)
Dermatology Solutions Group (DSG)
Owner - Unknown
Date Acquired / Invested - 2015 (acquired or reacquired from Cressey & Co., which invested in 2013)
Headquarters - Panama City, FL
Florida Offices - dominates the Panhandle region
Website - https://dermsolutionsgroup.com/
Locations - AL, FL, GA, MS
Date Acquired / Invested - 2015 (acquired or reacquired from Cressey & Co., which invested in 2013)
Headquarters - Panama City, FL
Florida Offices - dominates the Panhandle region
Website - https://dermsolutionsgroup.com/
Locations - AL, FL, GA, MS
DermCare Management
Owner - Gemini Investors
Date Acquired / Invested - July 2017
Headquarters - Hollywood, FL
Florida Offices - strong position across Greater Miami metropolitan area; also has offices in Boca Raton and the Florida Keys
Website - https://www.dermcaremgt.com/
Locations - FL
Date Acquired / Invested - July 2017
Headquarters - Hollywood, FL
Florida Offices - strong position across Greater Miami metropolitan area; also has offices in Boca Raton and the Florida Keys
Website - https://www.dermcaremgt.com/
Locations - FL
Forefront Dermatology
Owner - OMERS Private Markets (Ontario Municipal Employees Retirement System)
Date Acquired / Invested - February 2016 (acquired from Varsity Healthcare Partners, which invested in 2014)
Headquarters - Manitowoc, WI
Florida Offices - strong position in the Panhandle region
Website - https://forefrontdermatology.com/
Locations - AL, DC, FL, IL, IN, IA, KY, MD, MI, MN, MO, NC, OH, PA, VA, and WI
Date Acquired / Invested - February 2016 (acquired from Varsity Healthcare Partners, which invested in 2014)
Headquarters - Manitowoc, WI
Florida Offices - strong position in the Panhandle region
Website - https://forefrontdermatology.com/
Locations - AL, DC, FL, IL, IN, IA, KY, MD, MI, MN, MO, NC, OH, PA, VA, and WI
Integrated Dermatology Group (IDG)
Owner - Jeff Queen and possibly others (no private equity ownership)
Date Acquired / Invested - n.a.
Headquarters - Boca Raton, FL
Florida Offices - strong position in Boca Raton area
Website - https://www.mydermgroup.com/
Locations - AZ, CA, CO, DC, FL, IL, IN, LA, MD, NC, NV, OH, VA, Other (according to a press release, IDG provides care in 28 states)
Date Acquired / Invested - n.a.
Headquarters - Boca Raton, FL
Florida Offices - strong position in Boca Raton area
Website - https://www.mydermgroup.com/
Locations - AZ, CA, CO, DC, FL, IL, IN, LA, MD, NC, NV, OH, VA, Other (according to a press release, IDG provides care in 28 states)
PhyNet Dermatology
Owner - Century Equity Partners
Date Acquired / Invested - 2017
Headquarters - Nashville, TN
Florida Offices - We could not find a website for PhyNet nor a list of office locations. According to LinkedIn.com, PhyNet's Chairman of the Board and its Regional Director of Development-Florida are based in Florida. PhyNet Dermatology LLC is registered as a foreign limited liability company in Florida.
Website - http://cepfunds.com/portfolio/phynet-dermatology/
Locations - We could not find a website for PhyNet nor a list of office locations.
Date Acquired / Invested - 2017
Headquarters - Nashville, TN
Florida Offices - We could not find a website for PhyNet nor a list of office locations. According to LinkedIn.com, PhyNet's Chairman of the Board and its Regional Director of Development-Florida are based in Florida. PhyNet Dermatology LLC is registered as a foreign limited liability company in Florida.
Website - http://cepfunds.com/portfolio/phynet-dermatology/
Locations - We could not find a website for PhyNet nor a list of office locations.
Riverchase Dermatology and Cosmetic Surgery
Owner - GTCR
Date Acquired / Invested - October 2016 (acquired from Prairie Capital)
Headquarters - Fort Myers, FL
Florida Offices - strong position on the Gulf coast between Sarasota and Naples
Website - http://www.riverchasedermatology.com/
Locations - FL
Date Acquired / Invested - October 2016 (acquired from Prairie Capital)
Headquarters - Fort Myers, FL
Florida Offices - strong position on the Gulf coast between Sarasota and Naples
Website - http://www.riverchasedermatology.com/
Locations - FL
Skin and Cancer Associates
Owner - Susquehanna Private Capital
Date Acquired / Invested - March 2018
Headquarters - Miami, FL
Florida Offices - strong position on the Atlantic coast from Jupiter south to Miami; also has offices in Tallahassee, Jacksonville and Key Largo
Website - http://www.scacce.com/
Locations - FL
Date Acquired / Invested - March 2018
Headquarters - Miami, FL
Florida Offices - strong position on the Atlantic coast from Jupiter south to Miami; also has offices in Tallahassee, Jacksonville and Key Largo
Website - http://www.scacce.com/
Locations - FL
Water's Edge Dermatology
Owner - Gryphon Investors
Date Acquired / Invested - June 2018
Headquarters - Palm Bay, FL
Florida Offices - strong position on the Atlantic coast south of Vero Beach to West Palm Beach and various markets in central Florida
Website - https://www.wederm.com/
Locations - FL
Date Acquired / Invested - June 2018
Headquarters - Palm Bay, FL
Florida Offices - strong position on the Atlantic coast south of Vero Beach to West Palm Beach and various markets in central Florida
Website - https://www.wederm.com/
Locations - FL
On the surface, it may be difficult to differentiate among these dermatology companies. However, they vary widely in strategy, structure and culture. The private equity firms buying medical practices also vary in size, industry focus, and investment strategy. In future blog posts, we may explore some of these differences.
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