Sponsors circle South Florida ENT as process kicks off

  • Deal would be first PE investment space in ENT
  • 54 doctors in Miami-Dade, Broward, Palm Beach counties
  • Asset expected to trade at double-digit multiple of Ebitda

South Florida ENT Associates, one of the nation’s largest physician groups specializing in ear, nose and throat treatment, is exploring a sale, Buyouts has learned.

Deloitte is conducting a sponsor-focused sales process for the physician-owned company, five sources familiar with the matter said. Initial bids for the Miami Lakes, Florida, asset were submitted last week, one of the sources said.

Should the auction produce a transaction, it would represent private equity’s first move into otolaryngology.

South Florida ENT is said to have garnered significant interest in the early stages of the process, the sources said. The company is looking to fetch a double-digit multiple of Ebitda, which two of the sources said is in the teens range. Another source pegged annual Ebitda at around $14 million.

Founded in 2002, South Florida ENT consists of 54 board-certified ENT doctors at 44 locations across Miami-Dade, Broward and Palm Beach counties.

The physician group offers a wide range of diagnostics and treatment for conditions involving hearing, otology, allergy, facial plastics, voice, sinus, head and neck.

The company is led by CEO Stacey Citrin, who joined South Florida ENT in 2007 from Broward Health, where she had served as the health system’s administrative director of physician business operations.

And while the vertical has to date far been untouched by sponsors, the PE community has already proven to have a healthy appetite for other niche physician areas of the healthcare market.

For instance, the country’s largest gastroenterology specialty group, Texas Digestive Disease Consultants, is in the midst of a sponsor-focused process. Nexus Health Capital was retained to run a sponsor-focused process for TDDC, Buyouts reported in February.

Another area that remains largely uncharted by PE: Varsity Healthcare Partners in November invested in Orthopaedic Institute, the largest provider of orthopedic services and ancillary offerings in north-central Florida.

South Florida ENT executives didn’t immediately return requests for comment, while a Deloitte representative declined to comment.

Action Item: More about South Florida ENT: https://www.sfenta.org/

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