The Physician Medical Group (PMG) market was strong in 2025, as buyers overwhelmingly focused on small, tuck-in acquisitions to address heightened patient demand and favorable reimbursement conditions. According to LevinPro HC data, 521 PMG transactions were reported in 2025, up from 506 in 2024, highlighting sustained investor interest in the space.
Physician Growth Partners (PGP), a Chicago, Illinois-based M&A advisory firm focused primarily on physician group and private equity transactions, emerged as one of the most active advisors in the PMG sector in 2025.
Throughout 2025, the group advised on 12 transactions, including one Behavioral Health Care acquisition. The aggregate disclosed transaction value across completed PMG deals exceeded $400 million, with an average transaction value of $33.3 million. Dermatology accounted for the majority of PGP’s dealmaking, with six transactions, but it also advised on dental, pediatrics, orthopedic, eye care and ear, nose & throat deals. It worked with groups across 15 states and 54 locations.
Some notable transactions include:
- Hildred Capital Management’s DermCare Management acquisition of Texas-based Skin Cancer Specialists, Clear Creek Dermatology and Team Dermatology
- The acquisition of Fox Valley Orthopedics by Sequel Ortho, an InTandem Capital Partners company
- Forefront Dermatology’s, a Partners Group portfolio company, purchase of four practices: Swann Dermatology, Dermatology Specialists of Omaha, Wichita Dermatology & Aesthetics and Skincare MT
Driven by high margins and proven scalability, dermatology remains a cornerstone of PGP’s activity. Over the last five years, dermatology activity has averaged 25-30 deals per year, driven by companies such as Forefront Dermatology (14 deals since 2021) and Epiphany Dermatology (34 deals since 2021). With 32 deals in 2025, the dermatology sector experienced the most deal activity of the last two years.
For more stories with PGP’s perspective on dealmaking, explore the stories below:
- Behind the Deal: PGP Advises on Transaction with a Graham Group-Backed Acquirer
- Behind the Deal: PGP Advises on Women’s Health Transaction with Webster Backed Nova Women’s Health
- Behind the Deal: PGP Advises Contour Dermatology On Acquisition
- Behind the Deal: PGP Advises on Dermatology Transaction
- Behind the Deal: PGP Advises On CVAUSA Acquisition
- Behind the Deal: PGP Advises on Urology Transaction
