Despite a generally slow healthcare M&A environment in 2023, driven by economic uncertainty and rising interest rates, healthcare private equity investment in the ENT & Allergy space has been consistent through Q3 2023.
As one of the most fragmented physician subspecialties, the ENT space offers a significant opportunity to drive value through consolidation and the centralization of corporate functions, as well as the addition of ancillary services. When it comes to ancillary services, ENT practices offer one of the widest arrays of options including ambulatory surgery centers, allergy testing, asthma, audiology testing, hearing aids, sleep disorder clinics, and pediatric ENT, making the space particularly attractive to investors. As such, practices that already offer a comprehensive ancillary service offering can expect to command a higher multiple when pursuing a transaction.
The deal activity in the ENT & Allergy space has been centralized in the midwest, southeast, and southwest United States, with Elevate ENT Partners, SENTA Partners, and Parallel ENT & Allergy as the most acquisitive platforms.
Interested in how private equity can help your ENT & Allergy practice?
A number of states still lack the presence of a private equity backed ENT & Allergy platform, and the west coast, in particular, has seen minimal investment. Groups in high concentration areas such as the Midwest will benefit from a high level of competition and a wide variety of partnership options when pursuing a sale. Practices looking to sell in an untouched market such as on the west coast can be expected to be treated as a new market beachhead, which often entails regional leadership and more upside potential. Large groups in these markets are good candidates for direct private equity investment via the formation of a new ENT platform.
Overall, the market outlook in the ENT space remains strong and private equity partnerships continue to be an attractive option for physician owners looking to achieve their goals and succession plans. When evaluating a potential private equity partner, it is critical to consider cultural fit, as well as value, as strategy differs highly from platform to platform. Key aspects such as clinical autonomy, integration, go-forward compensation, and governance must be considered to ensure a strong go-forward partnership.
Recent ENT & Allergy Transactions
Date
Target
PE Sponsor
Platform
State
October 2023
Head & Neck Surgery of Kansas City
Trinity Hunt Partners
Parallel ENT & Allergy
MO
October 2023
North Florida Center for Otolaryngology
Audax Private Equity
Elevate ENT Partners
FL
October 2023
Charleston Allergy and Asthma
Waypoint Capital
Allergy Partners
SC
September 2023
Advanced ENT & Allergy
Shore Capital Partners
SENTA Partners
KY
September 2023
Allergy & Asthma Care of New York
Zenyth Partners; LNK Partners; LLR Partners; SV Health Investors
Schweiger Dermatology Group
NY
August 2023
San Antonio Head & Neck Surgical Associates
Audax Private Equity
Elevate ENT Partners
TX
August 2023
Centers for Advanced ENT Care
HealthQuest Capital
ENT Specialty Partners
MD, DC, VA
July 2023
Southern Indiana ENT
Candescent Partners
ENT Partners
IN
July 2023
Vero ENT Associates
Audax Private Equity
Elevate ENT Partners
FL
July 2023
Breathe Better Allergy, Asthma, & Sinus Center
Shore Capital Partners
SENTA Partners
GA
May 2023
Louisiana Ear, Nose, Throat and Sinus
Audax Private Equity
Elevate ENT Partners
LA
May 2023
Ear Institute of Texas and the Hearing Institute of Texas
Trinity Hunt Partners
Parallel ENT & Allergy
TX
April 2023
Wilmington Otolaryngology
Parallel ENT & Allergy; Trinity Hunt Partners
ENT & Allergy of Delaware
DE
April 2023
Otolaryngology Consultants
Audax Private Equity
Elevate ENT Partners
FL
March 2023
Ear, Nose & Throat Associates of Texas
Audax Private Equity
Elevate ENT Partners
TX
About Our Firm
Physician Growth Partners (PGP) Physician Growth Partners (PGP) is an advisory firm working exclusively with independent physician groups in transactions with private equity.
PGP has completed 15+ transactions in the last 12 months. Our firm is differentiated by:
Senior partner involvement at every stage of the process
Extensive physician practice transaction experience
Unmatched relationships with all key private equity and strategic buyers interested in ENT & Allergy
Educational approach focused on partnership and cultural fit + achieving a market-clearing valuation
