In the first half of 2019, there were 72 physician medical group deals announced, and approximately 63% of those involved private equity firms as the buyer, according to our Deal Search Online database.

And some were major deals too. Early in June, we reported that West Street Capital Partners VII, the private equity arm of Goldman Sachs (NYSE: GS), acquired Capital Vision Services LP for $2.7 billion from Altas Partners LP and Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ). If Capital Vision Services LP doesn’t ring a bell, that’s because they operate under the trade name MyEyeDr. 

The target company employs approximately 560 optometrists and ophthalmologists. Atlas and CDPQ bought Capital Vision for $775 million in 2015. A pretty good investment if we do say so ourselves.

A majority of the deals that came from a private equity firms involved their portfolio companies, consolidating smaller firms to build a larger network or platform. NMS Capital had its hand in a number of different acquisitions of specialty care providers. Its portfolio companies Omni Ophthalmic Management Consultants and CORDENTAL Group each reported two deals this year. The former, a referral practice providing specialty ophthalmology services, bought Corneal Associates of New Jersey and Ludwick Eye Center, widening its market reach in the Pennsylvania and New Jersey area. CORDENTAL Group, a dental support organization, bought Boain Dental Care and AppleWhite Dental, giving the buyer a foothold in the midwestern region of the U.S.

Gryphon Investors and its portfolio company Smile Brands Inc. reported three deals in 2019 through mid-July. Smile Brands, another dental support organization, bought DecisionOne Dental PartnersGateway Dental, and Promise Dental. DecisionOne is a smaller dental support organization, while Gateway and Promise provide general and cosmetic dentistry services.

PE Firms and portfolio companies have acquired 12 dental groups this year so far, or 12 out of the 16 reported overall. Ten of the 12 ophthalmology group deals announced also involved PE firms. Within the specialty physician medical groups, the influence of PE firms is striking. This is a trend we’re watching as PE firms swam various sectors. Be sure to check out our webinar on Physician Medical Group M&A on December 12, 2019.