If you’re paying a premium for an “investment bank valuation” but the team can’t run a dermatology-specific process end-to-end, you’re likely overpaying and underserved. A specialized dermatology broker, like TUSK, lives in this market every week, knows what the top MSOs and PE sponsors are prioritizing, and is built to create competitive tension and protect deal terms that survive diligence. Understanding the differences in offerings between the two will ensure your business is properly positioned and represented in a broader market process, while focusing negotiation points and deal terms in a manner most appropriate with your business’s stage of life, size, and scope.

Investment Bank vs. Dermatology Broker – What do they do?

Investment banks
Middle-market investment banks provide broad M&A services across sectors: research, buyer outreach, financial modeling, negotiation, and closing. They’re often used by groups seeking capital raising or debt advisory. They’re excellent at complex, larger transactions and multi-industry processes, often supported by capital markets capabilities and formal fairness opinions.

Dedicated dermatology brokers
A dermatology broker is focused on and well-versed in dermatology practice sales. They bring a curated set of aligned dermatology buyers to the negotiation table, understand the intricacies of a dermatology practice valuation, and can identify specific areas of growth for your practice should you need it. This laser focus on your specific market and business allows for a more refined process and provides a dialed-in approach to a practice sale.

In many ways, there are similarities in the services provided; however, working with a group that is intently focused on one service line, like a dermatology practice broker, allows practice owners to know they’re in the hands of an experienced professional with intimate experience of their needs in a transition.

The Pitfalls of One-Off Dermatology Valuations

You can’t sell your dermatology practice unless you know what it’s worth. So that leaves us with the most common first step for owners considering selling their practice: a valuation.

What a dermatology valuation should deliver:

• Clear Transition Options: Full insight into the different buyers that would be interested in partnering with your dermatology practice, whether that be an MSO, private equity group, or fellow doctor.
• Deal Structure Insight: Cash vs. Equity, Earn-Outs tied to post-close performance, retained ownership pathways.
• 5 Year Cash-Flow Analysis: Side-by-side outcomes for different structures so you see what you take home—not just on Day 1, but over time.

If you paid thousands for a standalone investment bank valuation and walked away without these answers (or a process to act on them), you overpaid. TUSK’s dermatology valuation is complementary and paired with the requisite level of industry knowledge so you can make an educated decision on when and how to sell your dermatology practice.

When an investment bank is the right fit

If your group is very large, multi-state, vertically integrated, or part of a broader recapitalization strategy (e.g., simultaneous real estate or minority recap), an investment bank’s cross-sector bench can be advantageous. Their infrastructure and capital markets relationships can widen strategic options.

When a dermatology broker is the clear choice

If you’re a single-site or regional dermatology practice generating anywhere between $2M to $30M of revenue, seeking a premium outcome with minimal disruption, a dermatology broker typically delivers more value for cost: sharper positioning, right-fit buyers, and a process paced to clinic realities.

FAQs for Dermatologists

How do I sell my dermatology practice to an MSO?
Start with a dermatology practice valuation that helps you understand what your practice is worth. The best outcome comes for practice owners who run a competitive deal process with multiple suitors.

What impacts a dermatology practice valuation?

Valuation hinges on revenue quality (payer/procedure mix, visit cadence, provider leverage) and EBITDA durability plus accretive ancillaries like dermpath and med-spa services with verified margins. Practices that prove how EBITDA is produced with clean data and run a competitive, dermatology-specific sale command higher multiples and seller-friendly terms.

Is private equity still active in dermatology?
Yes. Quality dermatology platforms with clean compliance, stable payer mix, and verifiable ancillary margins continue to command premium interest.