In September 2019, Becker’s ASC Review published an article written by VMG Health titled “Gastroenterology: An Emerging Trend in Private Equity Healthcare Transactions.”
This article discussed private equity (“PE”) firms’ increased interest in the gastroenterology (“GI”) provider industry, the current market dynamics and value creation opportunities within the GI industry, players in the space, and the future of PE transactions in GI. Since our previous article was published, the market continues to see consolidation of GI physician practices by PE or PE-backed firms. Most notably, we have begun to notice a shift from the formation of platform GI businesses to tuck-in, also referred to as add-on, acquisition activity by these platform companies.