After the Deal: Allergy & Asthma Associates of Michigan Partners with Parallel ENT & Allergy

Introduction

Allergy & Asthma Associates of Michigan is a leading allergy practice in the Greater Detroit area, with over 30 years of service to the community. With three clinic locations, the group has become the dominant provider of allergy services in the region, offering a comprehensive suite of treatments and fast, effective care to help patients manage allergies and asthma. Led by Drs. Abdul Bahrainwala, Amrish Patel, and Mohamad Tawila, the group has built a sustainable and scalable clinical model over time. In December 2024, they entered into a healthcare private equity partnership with Parallel ENT & Allergy Partners, marking Parallel’s first entry into the Greater Detroit market.

Client Background

The leadership of Allergy & Asthma Associates had previously explored various private equity options to find a partner that could support the continued growth and management of the practice. They were seeking a private equity backed ENT & Allergy partner who could help professionalize operations, recruit additional providers, reduce administrative burdens on clinicians, and implement a long-term succession plan. Additionally, the group was looking for support in provider recruitment, vendor contract negotiation, and enhanced data analytics to inform key decisions – all with the ultimate goal of improving patient care and experience.

Transaction Overview

Initially, Allergy & Asthma Associates pursued a private equity partnership with Physician Growth Partners, a leading healthcare investment bank. Physician Growth Partners structured a tailored investment banking process that targeted a comprehensive set of potential healthcare private equity partners, including private equity firms seeking an initial investment in allergy, as well as strategic private equity backed platforms already active in ENT & allergy services. PGP reached out to approximately 70 parties, generating strong interest across all categories, with the highest enthusiasm coming from ENT & Allergy strategic platforms looking to expand into the Greater Detroit market. By fostering competition and facilitating in-person meetings between the physicians and final suitors, the group was empowered to select a private equity partner aligned with both their current needs and long-term goals.

Outcome & Impact

Allergy & Asthma Associates of Michigan ultimately partnered with Parallel ENT & Allergy Partners, who had already established a presence in Western Michigan. This partnership with Parallel enables the group to achieve greater economies of scale with vendors, enhance operational infrastructure, and professionalize systems – all while allowing the lead physicians at AAAM to maintain clinical autonomy. Additionally, the partnership fosters collaboration and knowledge-sharing with other physicians across the platform to ensure patients continue receiving the highest quality care.

Conclusion

For physicians looking for further assistance in the ever challenging livelihood of independent practice, a strategic private equity partnership can help grow the practice by improving operations and aggregating scale and shared resources, while allowing the physician shareholders to focus on maintaining and improving patient care. This can translate to further growth and success for the practice, their patients and the community.

If you’re a founder or shareholder of an independent physician practice wondering if private equity is a fit for your practice or want to better understand a healthcare investment banking process, please fill out the form below and one of our healthcare advisors will be in touch with you shortly.