Dermatology practice consolidation and private equity in North Carolina took a surprising turn in March 2018 when DermOne exited the North Carolina market where it had six offices. The announcement came after Schweiger Dermatology Group acquired DermOne's offices in New Jersey. DermOne also exited Texas and Virginia, the two other states where it had offices.
Despite DermOne's exit, consolidation continues to accelerate among dermatology practices. As we noted in a previous blog post, more than 20 private equity groups have acquired dermatology practices in the U.S.
Several dermatology practices in North Carolina were acquired subsequent to the DermOne announcement and private equity firms continue to view North Carolina as an attractive market. Barry Baker of The Cobble Hill Group recently provided M&A advisory services to Bain Dermatology, P.A. in its sale to QualDerm Partners, LLC.
Here are some key facts about the NC dermatology market:
The interactive map below shows the North Carolina office locations for two large, dermatology companies that currently have 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.
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].
Despite DermOne's exit, consolidation continues to accelerate among dermatology practices. As we noted in a previous blog post, more than 20 private equity groups have acquired dermatology practices in the U.S.
Several dermatology practices in North Carolina were acquired subsequent to the DermOne announcement and private equity firms continue to view North Carolina as an attractive market. Barry Baker of The Cobble Hill Group recently provided M&A advisory services to Bain Dermatology, P.A. in its sale to QualDerm Partners, LLC.
Here are some key facts about the NC dermatology market:
- Large, growing population - with an estimated population of 10 million people in 2017, North Carolina is the 9th most populous state, the 12th fastest-growing (on a % basis), and had the 5th largest increase in the number of people in the U.S.
- Concentration of dermatologists - North Carolina has a lower than average number of dermatologists on a per capita basis, with 2.8% of the dermatologists and 3.2% of the population in the U.S.
- 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 7% of dermatologists in North Carolina are now affiliated with a private equity backed company. Although this estimate is higher than the U.S. average, it is substantially lower than Florida, where approximately 18% of dermatologists are now affiliated with a private equity group.
The interactive map below shows the North Carolina office locations for two large, dermatology companies that currently have 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.
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 all three, including those with offices across the U.S., have their headquarters in the southeast U.S.
Integrated Dermatology Group (IDG)
Owner - Jeff Queen and possibly others (no private equity ownership)
Date Acquired / Invested - n.a.
Headquarters - Boca Raton, FL
North Carolina Offices - Raleigh-Durham 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
North Carolina Offices - Raleigh-Durham 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)
QualDerm Partners (QDP)
Owner - Cressey & Company / Apple Tree Partners
Date Acquired / Invested - February 2016
Headquarters - Brentwood, TN
North Carolina Offices - Strong position in central and western North Carolina
Website - http://qualderm.com/
Locations - NC, OH, SC, TN, VA
Date Acquired / Invested - February 2016
Headquarters - Brentwood, TN
North Carolina Offices - Strong position in central and western North Carolina
Website - http://qualderm.com/
Locations - NC, OH, SC, TN, VA
Sona Dermatology & MedSpa
Owner - Pharos Capital Group
Date Acquired / Invested - January 2016 (acquired from Carousel Capital, which invested in 2004)
Headquarters - Charlotte, NC
North Carolina Offices - Offices in Charlotte, Raleigh, and Greensboro
Website - https://www.sonamedspa.com/
Locations - AR, NC, TN, TX, VA (according to a press release, Sona has offices in 7 states)
Date Acquired / Invested - January 2016 (acquired from Carousel Capital, which invested in 2004)
Headquarters - Charlotte, NC
North Carolina Offices - Offices in Charlotte, Raleigh, and Greensboro
Website - https://www.sonamedspa.com/
Locations - AR, NC, TN, TX, VA (according to a press release, Sona has offices in 7 states)
Related Blog Posts:
Dermatology Practice Consolidation and Private Equity in Florida
Consolidation in Retail Healthcare...We've Only Just Begun
Private Equity and Consolidation in Dermatology (Private Equity Platform Companies Per State)
About The Cobble Hill Group LLC:
The Cobble Hill Group provides M&A and valuation advisory services, with a focus on fragmented and consolidating industries including healthcare services and physician practices. For additional information, please contact Barry A. Baker, CFA directly at [email protected], at 877.814.4115 or through LinkedIn.
Dermatology Practice Consolidation and Private Equity in Florida
Consolidation in Retail Healthcare...We've Only Just Begun
Private Equity and Consolidation in Dermatology (Private Equity Platform Companies Per State)
About The Cobble Hill Group LLC:
The Cobble Hill Group provides M&A and valuation advisory services, with a focus on fragmented and consolidating industries including healthcare services and physician practices. For additional information, please contact Barry A. Baker, CFA directly at [email protected], at 877.814.4115 or through LinkedIn.
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