Sell a Dermatology Practices business

Owner-operator dermatology practices businesses trade at 2.2x–3.8x SDE for typical $500K–$3M SDE ranges. At $3M+ EBITDA scale the same operators sell at 8x–13x EBITDA. Multiples in this category are ebitda-based and data-sourced from PitchBook Healthcare Services 2025 + Bass Berry LMM Healthcare Report. Where you land in the range is driven by growth trajectory, revenue mix, customer concentration, and management-team depth beyond the owner.

US Dermatology Partners, Advanced Dermatology, Forefront Dermatology, and Schweiger Dermatology Group are the aggressive strategic acquirers. Active buyer archetypes in healthcare include Physician-services PE platform, Health system / MSO, Physician successor. Which of these bids for your business depends on scale — sub-$1M SDE is typically individual or search-fund territory, $1-3M SDE opens up PE platforms and strategics, and $3M+ EBITDA gets full LMM buyer attention.

Dermatology practices with cosmetic and Mohs surgery revenue mix command premium 10-13x EBITDA multiples — the cash-pay cosmetic revenue is what specialist buyers actively want. Beyond the industry-specific factor, the universal drivers in healthcare are payer mix (commercial vs government) — commercial-weighted practices command premium; provider retention post-close (employment agreements + earn-outs standard); multiple providers/practitioners (not solo-owner-dependent).

Dermatology has significant physician-recruiting difficulty and PA/NP scope-of-practice regulation varies by state; buyers scrutinize provider mix carefully. Buyers in this category also standardly scrutinize payer reimbursement rate compression and physician recruiting difficulty. Addressing these in advance in a well-prepared CIM materially reduces retrade risk during diligence.

Typical transaction range for dermatology practices is $1.0M–$25M in annual revenue. Below that, buyer pool narrows to individual and small-search-fund. Above that, PE platforms and strategics dominate. NAICS code 621111 — buyers screen by NAICS in most deal sources.

From the day you engage a broker to close, expect 6–12 months for a well-prepared business in healthcare. The prep work — financial cleanup, addbacks documentation, key-employee retention agreements, real estate lease sorting — is where 3-6 months of the timeline hides. Starting that early is what separates a full-multiple exit from a discounted one.