Advanced Dermatology & Cosmetic Surgery

Summary

Created an industry leader in medical dermatology and cosmetic services by investing in growth and executing forty add-on acquisitions to enhance density in existing markets and expand into new geographies.

Background

Headquartered in Maitland, Florida, Advanced Dermatology & Cosmetic Surgery (“ADCS”) is one of the leading dermatology-focused physician practice management company, with 140+ clinics around the United States which provide clinical, cosmetic, and pathology services. ADCS also provides billing and coding services for third-party dermatology practices under its Ameriderm practice management offering.

Challenge

When Audax invested in ADCS in October of 2011, ADCS was a dermatology-focused physician practice management company with a leading regional presence in Florida and Ohio. Audax recognized the potential to build the business into a national platform within the highly fragmented dermatology space.

During Audax’ investment period, ADCS completed forty add-on acquisitions and added five de novo clinics across the US, enhancing its existing footprint in Florida and Ohio, and expanding into eleven new state markets: Colorado, Arizona, Nevada, Wyoming, Michigan, Pennsylvania, Virginia, Georgia, Alabama, Maryland, and South Carolina.

Additionally, Audax worked with management to accelerate organic growth and scale operations by investing in technology, people, and systems to support centralized services, expanding relationships with payors, and implementing revenue initiatives to increase patient retention and provider utilization.

The Audax Difference

Working together with management, Audax grew ADCS into one of the nation’s leading dermatology-focused physician practice management company. Since Audax’ initial investment in ADCS in 2011, revenue quadrupled to over $200 million.

Recognizing the company’s market leading position, best-in-class management team, sterling reputation, and continued organic and acquisition growth opportunities, a private equity firm acquired ADCS from Audax in May 2016.


We’ve enjoyed a terrific partnership with Dr. Leavitt and his team over the past five years, having built the business into a quality-focused platform in a consolidating space.”

  • Keith Palumbo Managing Director at Audax

Audax Group has been a terrific partner. Their experience sourcing and integrating add-on acquisitions along with their operational expertise were key assets as we expanded ADCS into new geographies and expanded in our existing markets. I am proud to see how far ADCS has come since I launched the company in 1989.”

  • Dr. Matt Leavitt CEO of ADCS