Selling a dermatology practice carries lasting consequences for your career, your wealth, and your legacy. For many physician-owners, it’s the culmination of decades of patient care, brand building, and operational excellence. And while the dermatology M&A market is red hot—fueled by an influx of private equity-backed MSOs and record-high valuations—it’s also full of complexity, nuance, and risk.

Whether you’re asking “What’s the best way to sell my dermatology practice?” or “How much is my dermatology practice worth?”, the answers depend on far more than revenue or specialty alone. This article breaks down three of the most important components of a successful sale:

• Dermatology practice valuation
• Market timing and strategic positioning
• What buyers are really looking for in today’s market

As a leading healthcare M&A firm, TUSK Practice Sales has represented top-performing dermatologists across the country. We know what works, what buyers want, and why most owners leave money on the table by going it alone.

Dermatology Practice Valuation: More Than Just a Multiple

When owners think about selling, one of the first questions they ask is, “What’s my dermatology practice worth?” Unfortunately, most are given over-simplified answers—multiples of  EBITDA without looking into the financials or ballpark figures from advisors who aren’t active in the dermatology M&A market. That shortcut leaves value on the table.

In reality, a true dermatology practice valuation goes far beyond the numbers. While EBITDA plays a role, buyers place just as much weight on:

• Provider mix (especially associate productivity)
• Revenue diversification across general, cosmetic, and procedural dermatology
• Payer mix and out-of-network billing strategies
• Infrastructure and scalability
• Market position and geography

If your projected valuation is based solely on numbers, you’re missing the bigger picture—and likely leaving value on the table. The best valuations come from understanding if your dermatology practice is a sustainable business that can scale, not just a book of patients reliant on a single physician.

At TUSK, we lead our own in-house valuation process. Why? Because we understand what the best buyers are willing to pay—and how to position your practice to reach them.

When Is the Best Time to Sell a Dermatology Practice?

In today’s environment, timing isn’t just a matter of convenience—it’s a matter of leverage. If you’re wondering whether now is the right time to sell your dermatology practice, consider this: buyer demand has never been higher, and private equity-backed MSOs are aggressively expanding across key markets. That demand is driving:

• Higher valuations
• More favorable deal structures
• Multiple competitive offers for well-positioned practices

Dermatology has become one of the most attractive specialties for private equity and that interest has driven dermatology practice sales to record levels, with competitive deal structures, earnouts, and valuations well above historical norms.

But as with all cycles, this environment won’t last forever. When buyer demand is high and capital is flowing, sellers have options. When the market tightens, those options shrink fast.

The best time to start exploring a potential sale is before you’re ready to exit. Why? Because the earlier you start, the more leverage you have to craft a deal on your terms. If you’re still growing, still engaged, and have time to run a strategic process, you’re in the driver’s seat. If you wait until burnout or a health issue forces your hand, you’ll be negotiating from a position of urgency—not strength.

What Buyers Are Looking for in a Dermatology Practice

Private equity groups and MSOs are looking for the right fit. And that means checking both clinical and operational boxes. So, what are they really after?

• Multi-provider models with strong associate production
• Consistent procedural revenue, especially from Mohs or cosmetics
• Clean financials with clear historical trends and minimal add-backs
• Operational maturity, such as EMR adoption, RCM efficiency, and marketing systems
• Clinical transition planning, with owner longevity or an internal successor

What often gets overlooked is cultural fit. The best buyers want a collaborative partnership—not just a transaction. They want to know that a seller is aligned with their model, and that there’s a path to a smooth post-close transition. That might mean the owner stays on for 3–5 years in a clinical role, or that a lead associate is ready to step up. Either way, transition planning is critical.

That said, not all buyers are equal. Some platforms overpromise and underdeliver. Others are financially unstable or still unproven in dermatology. At TUSK, we’ve vetted hundreds of groups—and we only bring our clients to the table with buyers that have a strong track record, capital in place, and a history of honoring their commitments.

Why DIY Doesn’t Work in Dermatology Practice Sales

It’s tempting to think you can manage the sale of your dermatology practice on your own—especially if you’ve got a solid CPA, a good attorney, and some interest from a buyer. But in most cases, that decision costs owners hundreds of thousands—if not millions—in missed value, weaker deal terms, and unnecessary risk.

What seems straightforward from the outside becomes increasingly complex when you get into:

• Due diligence and legal exposure
• Earnout and rollover equity structures
• Tax implications of deal terms
• Buyer selection and alignment
• Post-close employment agreements

And what most solo sellers don’t see coming during the process are:

• Re-trades—when a buyer reduces their offer during diligence
• Equity that doesn’t convert—because the buyer never hits their growth targets
• Restrictive employment terms that limit your autonomy post-close
• One-sided reps and warranties that expose you to liability

Running a strategic process with multiple qualified buyers creates leverage. It allows you to choose the right fit, not just the first one to show interest. And it gives you the data, clarity, and representation you need to walk into a negotiation confidently.

You Only Sell Your Dermatology Practice Once

You’ve built something real—something valuable. When it comes time to sell, you deserve a process that reflects the true worth of your dermatology practice. That doesn’t happen by accident. It happens when you prepare early, understand your leverage, and surround yourself with advisors who have seen behind the curtain of every buyer group in the market.

Whether you’re just starting to think about your options or responding to an unsolicited offer, we’re here to help you explore what’s possible—confidentially, strategically, and with zero pressure to transact.