The ophthalmology sector has experienced significant consolidation over the past five years, largely driven by private equity, according to a report from VMG Health.
Here are seven things to know from the report:
1. Deal volume in the ophthalmology sector slowed in 2023 and 2024 following the high-volume years of 2020 through 2022. VMG Health cites economic headwinds including higher interest rates, widened valuation gaps and a renewed focus on organic growth.
2. By 2025, ophthalmology deal volume had fallen to new lows compared to the prior decade. Fewer than 100 groups were estimated to have transacted, compared to more than 300 in 2021.
3. Despite the reduced volume, 2025 included two major deals. In January 2025, Cencora completed its acquisition of Retina Consultants of America. In February 2025, McKesson signed a definitive agreement to acquire an 80% stake in Prism Vision Holdings from Quad-C for approximately $850 million.
4. Other notable deals included Unifeye Vision Partners’ acquisition of Brooks Eye Center in May 2025 and EyeSouth Partners’ acquisition of Sunvera Group in August.
5. According to VMG Health, ophthalmology acquirers are prioritizing high-quality practices within existing markets to build geographic density. Buyers are also emphasizing cultural alignment to help ensure smoother integration into larger platforms. Such practices remain in high demand, while supply has tightened as valuations normalized from early-2020s peaks and many physicians have chosen to remain independent.
6. Retina and cataract-focused practices remain especially attractive due to strong margins tied to vitreous drug therapies.
7. Premium intraocular lens implantation also presents meaningful upside for groups with purchasing power and affiliated ASCs, allowing them to participate in the facility component of these high-value procedures.
“Investors remain optimistic in the long term given an aging population and the continued innovation in related ancillary ophthalmic services,” the report said. “However, lower transaction volumes should be expected for 2026, as investors remain selective, leading to fewer but higher-quality deals compared with the early 2020s.”
