Behind the Deal: PGP’s Michael Kroin Provides Insights on Dermatology Consultants deal
Read the original article in LevinPro HC – Editor Kate Humphrey, Levin Associates
Physician Growth Partners (PGP) announced that it acted as the exclusive financial advisor to Dermatology Consultants as it was acquired by Forefront Dermatology.
We spoke with Michael Kroin, CEO and Managing Partner of PGP, who was able to provide his insights into the acquisition. PGP is a sell-side healthcare investment banking firm dedicated to representing independent physician practices in transactions with private equity.
Established in 1976, Dermatology Consultants operates two dermatology locations and one specialty clinic in Kentucky. It provides a comprehensive suite of medical, surgical and cosmetic dermatology services. According to its website, the practice has four physicians on staff.
Forefront Dermatology is a network of dermatology practices providing general, surgical and cosmetic dermatology care and related laboratory services. Partners Group, a Swiss-based global private equity firm, acquired Forefront Dermatology in February 2022.
While there were other buyers interested in Dermatology Consultants, Kroin said that Forefront Dermatology was chosen because “Dermatology Consultants believed that Forefront was the best fit for their interests and goals, as Forefront provided the support they needed to scale while allowing them to continue to maintain autonomy.”
Dermatology Consultants will leverage the relationship with Forefront to enhance its infrastructure, facilitate new service offerings, expand its geographic footprint and further develop its market position. Financial terms of the deal were not disclosed.
This is Forefront Dermatology’s first acquisition in 2024, and, as noted by Kroin, had been in the works for approximately six months before closing. In 2023, the company completed two transactions, expanding its presence in Illinois and Oregon.
According to data captured in the LevinPro HC database, this acquisition represents the 375th Physician Medical Group transaction of the year, and the 14th in the dermatology specialty. Between January 1, 2023, and September 30, 2023, there were 23 dermatology transactions reported, which is a slight increase from the deal volume of 2024.
However, even though there has been a decrease in dermatology M&A activity in 2024, Kroin is not too concerned with the future of the market, remaining almost optimistic. He said, “as we approach Q4 of this year, we are witnessing considerable M&A activity in the dermatology sector. The recent influx of new capital and mergers of major platforms is a major catalyst for this trend.”
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