Updated: June 2026
Published by Physician Growth Partners
The dermatology sector remains one of the most active physician specialties for private equity investment in today’s market. Consolidation began gaining momentum around 2014, making dermatology one of the earliest specialties to attract meaningful private equity interest. Today, more than 30 private equity-backed platforms operate across the country. Despite this activity, the market remains highly fragmented. Private equity-backed organizations continue to pursue buy-and-build strategies to expand their scale and geographic reach, yet most dermatology practices in the United States are still independently owned and operated.
Buyer appetite for dermatology assets remains exceptionally strong, driven by the desire to increase market density, capitalize on ancillary service offerings, centralize administrative functions, and realize economies of scale. Demand has increased in recent months as private equity-backed platforms have raised fresh capital, driving greater competition for high-quality practices in attractive markets.
Independent dermatology groups are increasingly exploring private equity partnerships as they navigate the growing complexity associated with providing care, seek to alleviate administrative and financial burdens, access additional resources, and accelerate growth initiatives. As consolidation across the specialty continues, many physicians view these partnerships as an opportunity to gain the benefits of greater scale, enhanced infrastructure, and strategic support while remaining focused on delivering high-quality patient care. As any group is pursuing a partnership to achieve these goals, it is critical that any transaction is structured to preserve clinical autonomy and ensure physicians retain control over how they practice medicine.
The U.S. dermatology services industry is a $10 billion market as of 2025, growing at a steady compound annual rate.1 Skin cancer remains the most common cancer in the United States, with approximately 9,500 new diagnoses each day and one in five Americans expected to develop it during their lifetime. Roughly 50 million Americans are affected by acne annually, 31 million by eczema, and 7.5 million by psoriasis, each requiring ongoing clinical management and generating highly recurring patient volumes.3,4,5
Additionally, cosmetic and medical aesthetic demand continues to expand. Americans continue to spend more on minimally invasive cosmetic procedures year over year, contributing to a rapidly expanding global aesthetic medicine and cosmetic dermatology market that is now projected to skyrocket to $94.90 billion by 2032.6
At the same time, patient demand continues to outpace provider supply. There are more than 14,000 active dermatologists serving a U.S. population of nearly 346 million,7 and many counties lack a practicing dermatologist altogether. The average wait time to see a dermatologist continues to grow in major metropolitan areas and are even greater in secondary and tertiary markets. Additionally, while dermatology residency slots continue to be of the most competitive in medicine, the number of residency slots lags, limiting supply pipelines.
Collectively, these factors, including strong and recurring demand, diversified revenue streams, favorable demographic trends, and constrained provider supply, continue to make dermatology one of the most attractive specialties for private equity investors and strategic consolidators.
Dermatology practice valuations are influenced by several key factors, including the size and maturity of the organization, the balance of medical, surgical, and cosmetic services, mid-level provider utilization, physician age, and market concentration within a given geography.
Drawing on PGP’s experience advising over 24 dermatology transactions, highly scaled organizations with established infrastructure, strong provider networks, and multiple growth avenues continue to command valuations in the low double-digit EBITDA multiple range. In contrast, smaller, high-quality standalone practices are more commonly valued at high single-digit EBITDA multiples. The ultimate valuation outcome depends on a range of considerations, including organizational scale, growth prospects, ancillary revenue streams, provider composition, geographic presence, and the overall quality of the operating platform.
Key valuation drivers – what will buyers consider?
| Attribute | Considerations |
|---|---|
| Scale | EBITDA > $2M |
| Diversified Provider Mix | Variety of provider types including General Dermatologist, Cosmetic Dermatologist, Mohs Surgeons, Dermatopathologist, Mid-Levels |
| In-House Dermatopathology / Lab | Ancillary centralized service captured in house |
| Mid-Level Provider Utilization | A balanced mid-level to physician ratio, and a formal PA/NP training program |
| Diversified Service Mix | Variety of services including General Dermatology, Cosmetic Dermatology, Mohs Surgery, Dermatopathology, Medical Aesthetics, Products |
There are many factors to consider when selling your practice. During a competitive marketing and sales process, it’s important to have a plan in place to address the following items. These are potential red flags for buyers that could affect valuations and it’s important to understand how these items affect valuations and how to strategize to defend them prior to exploring a transaction process:
PGP works with clients well before launching a formal process to identify and address these types of issues. This includes evaluating billing practices, reimbursement exposure, and other key operational factors that buyers are likely to scrutinize, helping ensure a smoother process and minimizing surprises during diligence and negotiations.
The dermatology buyer universe consists of several distinct acquirers:
Dermatology M&A activity has remained strong since 2025, with nearly 30 founder-led dermatology practices announcing transactions with private equity-backed platforms. PGP has been actively involved in many dermatology transactions that included an investment banker, offering deep sector expertise, real-time visibility into buyer demand, valuation trends, and transaction execution.
Below is a list of dermatology transaction announcements since January 2025:
| Date | Platform | Target | Commentary |
|---|---|---|---|
| Jan 2025 | Epiphany Dermatology | Town Square Dermatology | Iowa-based medical, surgical, and cosmetic dermatology provider. |
| Feb 2025 | Integrated Dermatology | Four Seasons Dermatology | Multi-state clinical footprint consisting of four operational locations across New York and Vermont. |
| Feb 2025 | Epiphany Dermatology | West Valley Dermatology | Utah-based clinical operation focused on general, procedural, and preventative dermatology care. |
| Feb 2025 | DOCS Dermatology Group | Charlotte Dermatology | Regional clinical group comprising 15+ providers across 8 clinic locations. (Advised by PGP) |
| Mar 2025 | Epiphany Dermatology | Mark H. Lowitt, MD, LLC | Maryland clinical practice specializing in comprehensive independent medical and surgical skin care. |
| Mar 2025 | Dermatology Partners | Allan Mineroff, MD, PC | Pennsylvania medical practice focused on targeted clinical dermatology. |
| Mar 2025 | DermCare Management | Skin Cancer Specialists Dermatology | 5 locations and is the preeminent provider of medical dermatology and cosmetic care in the Houston, TX metropolitan area. (Advised by PGP) |
| Apr 2025 | DermCare Management | Clear Creek Dermatology | Regional clinical provider delivering specialized medical therapies and advanced cosmetic procedures. |
| Apr 2025 | DermCare Management | Sona MedSpa | Cosmetic medical spa network providing standardized non-invasive aesthetic and rejuvenation treatments. |
| Apr 2025 | Epiphany Dermatology | Peak Dermatology | General and cosmetic dermatology platform expanding local clinical access and patient care. |
| Apr 2025 | Golden State Dermatology | Pierre Skin Care Institute | Greater Los Angeles clinical practice specializing in premium cosmetic procedures, lasers, and advanced skin rejuvenation. |
| May 2025 | MedSpa Partners | Marmur Medical | Manhattan-based practice focused on high-end laser surgery, clinical dermatology, and cosmetic treatments. |
| Jun 2025 | Schweiger Dermatology | California Skin Institute | Multi-site medical and surgical dermatology network spanning major regional markets. |
| Jun 2025 | The DermDox Group | Dermatology Centers of NEPA | Northeastern Pennsylvania clinical group providing dedicated medical and routine surgical dermatology services. |
| Jun 2025 | Integrated Dermatology | Dermatology Center of Loudoun | Northern Virginia regional practice delivering integrated medical and aesthetic clinical solutions. |
| Jun 2025 | Epiphany Dermatology | Norris Dermatology and Laser Northwest | Pacific Northwest practice offering comprehensive medical dermatology and advanced aesthetic laser care. |
| Jul 2025 | Forefront Dermatology | SkinCare MT | A premier independent dermatology group based in Bozeman, Montana. (Advised by PGP) |
| Aug 2025 | Epiphany Dermatology | Flatirons Dermatology | Colorado-based medical group providing specialized surgical, clinical, and aesthetic skin treatments. |
| Aug 2025 | Golden State Dermatology | Woll Dermatology | Southern California multi-location practice providing family-focused medical and pediatric dermatology services. |
| Aug 2025 | Epiphany Dermatology | Dermatology Associates | Established regional multi-physician group providing full-service medical and cosmetic skin therapies. |
| Sep 2025 | Epiphany Dermatology | Grace Dermatology & Micrographic Surgery | Specialized clinical operation focusing on Mohs micrographic surgery and advanced oncological dermatology. |
| Oct 2025 | Epiphany Dermatology | Modly Dermatology | Clinical group delivering targeted medical protocols and surgical dermatology solutions. |
| Oct 2025 | Epiphany Dermatology | Big Sky Dermatology | Montana-based regional practice delivering comprehensive medical, surgical, and aesthetic patient solutions. |
| Oct 2025 | Forefront Dermatology | Wichita Dermatology & Aesthetics | Regional platform featuring 10 providers across 2 strategic clinical locations. (Advised by PGP) |
| Nov 2025 | US Dermatology Partners | Helms Dermatology | Arkansas based clinical practice providing comprehensive medical and preventive dermatology care. |
| Nov 2025 | Dermatology Partners | David Strobel, M.D. | Maryland-based medical practice focused on core surgical and general dermatology treatments. |
| Dec 2025 | Epiphany Dermatology | Dermatology Associates of San Antonio | Texas regional clinical network providing comprehensive medical, surgical, and cosmetic skin care. |
| Dec 2025 | Forefront Dermatology | Dermatology Specialists of Omaha | Full-service dermatology practice with seven board-certified dermatologists and six advanced practice clinicians. (Advised by PGP) |
| Dec 2025 | Forefront Dermatology | Swann Dermatology | Led by three board-certified dermatologists and delivers comprehensive medical, surgical, and cosmetic dermatology services across five locations. (Advised by PGP) |
| Dec 2025 | Schweiger Dermatology | Goodless Dermatology | Florida-based dermatology provider specializing in integrated medical and cosmetic clinical services. |
| Feb 2026 | Epiphany Dermatology | Guardian Dermatology | Community-focused clinical group delivering core medical and routine surgical dermatology treatments. |
| Feb 2026 | Forefront Dermatology | HealthySkin Dermatology | Multi-site regional platform providing comprehensive medical, surgical, and aesthetic dermatology services. |
| Feb 2026 | VitalSkin Dermatology | Core Dermatology | PE-backed acquisition of a dermatology platform with strong presence in Illinois and Iowa. |
| Feb 2026 | Epiphany Dermatology | Arlington Dermatology | Localized clinical practice providing routine medical visits, screenings, and cosmetic services. |
| Feb 2026 | Epiphany Dermatology | Regional Dermatology | Clinical group based in MO delivering established medical, surgical, and aesthetic skin solutions to the regional market. |
| Feb 2026 | Epiphany Dermatology | Resolute Dermatology | Regional medical practice focused on high-quality surgical interventions and diagnostic dermatology care. |
| Feb 2026 | Dermatology Partners | Bene Dermatology | Specialized medical practice providing targeted diagnostic and clinical skin care protocols. |
| Mar 2026 | Avenue Dermatology | Gendler Dermatology and Lewis Dermatology | Strategic integration of two premier practices to launch a unified cosmetic and medical dermatology platform. |
| Mar 2026 | Epiphany Dermatology | David Grice, DO, PA | Regional clinical operation providing general surgical and medical dermatology services. |
| Mar 2026 | Epiphany Dermatology | Affiliated Dermatologists & Dermatologic Surgeons | Multi-physician clinical group offering extensive regional experience in surgical and medical dermatology. |
| Apr 2026 | Integrated Dermatology | Singer Dermatology | Michigan-based clinical practice focused on targeted medical therapies and cosmetic skincare protocols. |
| Apr 2026 | AQUA Dermatology | Steele Dermatology | Advanced clinical practice providing integrated medical, surgical, and aesthetic dermatology options. |
| May 2026 | Epiphany Dermatology | Midlothian Dermatology | Community-centered practice focused on localized medical and routine surgical dermatology interventions. |
| May 2026 | Golden State Dermatology | Todd Anhalt, MD (Los Altos) | Bay Area premium practice delivering advanced clinical expertise and modern cosmetic skin health solutions. |
| Jun 2026 | Epiphany Dermatology | Fairhaven Dermatology | Regional clinical practice providing routine medical, preventive, and surgical skin care paths. |
Client Advised by PGP
PGP has advised on 23 dermatology transactions since 2018, making it one of the most active transaction advisors in the dermatology industry. A selection of recent transactions include:
PGP continues to be active across the dermatology sector, with several client transactions expected to close in 2026. These outcomes are expected to emphasize sustained buyer appetite for high-quality dermatology practice assets.
PGP’s firsthand experience believes that it is a great time to evaluate a potential transaction given the following factors:
A Wave of Recapitalizations Is Generating Fresh Buyer Capital: Several dermatology platforms have recently completed secondary recapitalizations, providing legacy shareholders with a “second bite” and access to fresh capital. Other platforms are nearing similar recapitalization cycles. Groups such as Forefront, Epiphany, and DOCS Dermatology have already completed these events, bringing in new capital partners with a strong mandate to deploy capital through add-on acquisitions across existing and new geographies. This has expanded the pool of active buyers, creating more competitive processes and stronger outcomes for sellers.
Premium Valuation Environment: We are currently seeing valuations and multiples return to premium levels like those reached in the 2021 and 2022. During 2023 and 2024, valuations softened as interest rate uncertainty and broader market volatility weighed on buyer appetite. More recently, increased market confidence, ample private equity capital, and strong competition among acquirers have driven valuation multiples higher, with larger, scaled platforms frequently commanding low double-digit EBITDA multiples and smaller add-on acquisitions generally trading at high single-digit multiples.
Increased State Restrictions: Oregon and California have led a wave of state-level legislation imposing new restrictions and reporting requirements on private equity transactions in healthcare. Additional states are expected to follow, and practice owners in affected markets face a narrowing window before compliance complexity further reduces the pool of interested buyers or increases transaction friction.
Continued Pressure from Health Systems / PE-Backed Dermatology Groups: Dermatology is among the most difficult specialties to recruit for in the country. Hospital systems and private equity backed dermatology groups are escalating compensation packages, signing bonuses, and employment stability guarantees that independent practices are struggling to match
Substantial Institutional Dry Powder: Private equity investors and strategic consolidators entered 2026 with significant reserves of uncommitted capital to deploy. This liquidity ensures a deep bench of extremely motivated buyers, protecting the dermatology sector from broader macroeconomic credit tightening and sustaining transaction volumes
Succession and Estate Planning Optimization: With the growing percentage of practicing dermatologists aged 55 or older, a significant share of current practice owners are seeking to derisk and diversify.
Public discussion around private equity in healthcare has intensified in recent years, and dermatology has been a prominent part of that conversation. It is important to acknowledge both the concerns that have been raised and the realities reflected in the data and the experiences of physicians who have partnered with these organizations.
Just like in any industry, not all private equity is created equal. Some early transactions were driven by strategies that prioritized financial performance at the expense of clinical culture and physician engagement, and those outcomes created a level of scrutiny in the space. However, many of the leading dermatology platforms operating today have evolved significantly, implementing governance structures designed to protect physician autonomy, preserve local practice identity, and provide operational support where it delivers the greatest value. This includes helping independent practices with payor contracting, purchasing leverage, recruitment, and the expansion of ancillary services.
The most critical work occurs well before a transaction is completed. Physicians must carefully evaluate potential partners, fully understand the governance framework that will shape the practice after closing, and select an organization with a proven track record of respecting the culture and clinical independence of the practices it acquires. Navigating that process thoughtfully is where experienced advisors like PGP can provide meaningful value and help ensure long-term alignment between physicians and their chosen partner.
As one of the most mature specialties for private equity consolidation, dermatology offers independent groups a more informed market environment for evaluating strategic partnership opportunities. At the same time, private equity-backed dermatology platforms have become more sophisticated and selective, focusing on opportunities that align with their business model, growth strategy, and operational priorities.
Dermatology practices that attracted the best outcomes in 2025 were not necessary the largest, they were the most clearly positioned with strong clinical reputations, efficient business operation, and diversified service lines in attractive geographies.
At the same time, the environment is not without real headwinds. Regulatory pressure at the state level is real and tightening. Reimbursement is under pressure from CMS. Health system and Private Equity competition for physicians is intensifying. The window to transact at premium multiples in a deep buyer market will continue, but it won’t likely last forever.
For independent dermatology owner-operators, the most valuable step you can take today is to become informed. That does not necessarily mean pursuing a transaction now. It means understanding what your practice may be worth, which buyers are active in your market, and how a potential transaction could be structured both financially and clinically. Gaining that knowledge on your own timeline allows you to make decisions from a position of strength rather than out of reactive necessity.
No obligation. Completely confidential. Typically 30 minutes.
Sources & Citations
Physician Growth Partners · This content is provided for informational purposes only and does not constitute legal, financial, or investment advice. All transaction data sourced as cited. © 2026 Physician Growth Advisors, LLC. All rights reserved.