Gastroenterology Private Equity – Market Update

Gastroenterology has emerged as an important sector of interest for private equity investment. Although the market is still in the early stage of consolidation, the industry has seen a transformative shift in the last 3 years. Seven of the 10 “platform” entities that PE firms are using to drive these efforts were established after May 2019 and the market has become increasingly active and competitive. This investment boost has led to new opportunities for independent physician groups to capitalize on what they have built and take part in future growth. Heightened deal activity and considerable dry powder in the market creates a unique window of opportunity yet to be seen in this industry. And despite the increased activity, favorable deal terms and competitive valuations are at all-time highs for both add-on acquisitions and initial platform investments. The outlook for private equity partnerships with gastroenterologists is strong and looks to be an attractive option for physician owners to achieve their goals and empower succession plans.

About Our Firm

Physician Growth Partners (PGP) is a transaction advisory firm working exclusively with independent physician groups in transactions with private equity.

Differentiated Healthcare Transaction Advisors:

• 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 gastroenterology
• Educational approach focusing on both partnership and cultural fit, while simultaneously achieving a market clearing valuation