An Update on Consolidation and Investment within Eye Care

Published December 2020

It’s hard to believe that less than six years ago, private equity was a foreign concept to most practicing ophthalmologists and had very little bearing in the business world of eye care. Today, private equity is one of the most focal and prevalent topics in the industry, finding its way into conference panels, board meetings, and new hire interviews. Hundreds of transactions and billions of investment dollars later, ophthalmologists today are much more versed in the language of private equity and are equipped with a wealth of resources and precedent outcomes to help navigate the waters of private equity investment.

Today, an estimated 15% of practicing ophthalmologists are affiliated with private equity; while a drastic increase from prior years, this indicates the sector is still in the very early innings of consolidation. As the industry presses forward to the next iteration of its investment life cycle, which happens to coincide with unprecedented macroeconomic conditions, Provident will reflect on the last few years and on our view of where the industry is heading. The goal of this whitepaper is to further educate ophthalmologists and other industry participants on the current state of affairs within the sector, what to expect on a go-forward basis, and on the various options and deal structures afforded to shareholders that may be considering a transaction.

Report Summary

• Introduction
• Progression of Investment within Ophthalmology
• Types of Partnership Models & Considerations
• Investment Activity & Structure During COVID-19
• Key Value Drivers & Financial Considerations
• Concluding Thoughts