The key trends to know:
1. Gastroenterology is a fragmented market, which may impact private equity opportunities. Gastroenterologists are accustomed to working independently, making combinations and add-ons challenging.
2. Gastroenterology multiples vary due to differences in infrastructure and practice sophistication. Multiples will likely be lower for add-in deals and for practices without an established infrastructure. Conference panelists said they’ve seen multiples in the low teens or high single digits for practices with a strong internal structure.
3. Commercializing gastroenterology ancillaries is key in gastroenterology. Structured ancillaries can form lucrative investments and benefit physicians’ practices.
4. Before a practice comes to market, there should be an agreed-upon, transparent formula for physician compensation.
More articles on gastroenterology:
Drs. Charles Friel, Vaibhav Wadhwa & more: 4 GI physicians making headlines
GI leader to know: Dr. Rajesh Keswani of Northwestern Medicine
Hospital acquires Cumberland Gastroenterology — 4 insights
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