Chausovsky Examines Economic Resilience in Dermatology Market

The article, led by insights from Alex Chausovsky and Clint Bundy of the Bundy Group, explores key economic trends and consolidation activities in the dermatology and aesthetics sectors as 2025 approaches. Despite a challenging past election year in 2024, the US economy has demonstrated resilience, achieving a 'soft landing' with a moderate 2.7% GDP growth in Q3 compared to the previous year. Growth and opportunity in the dermatology sector are driven by advancements and the rising prevalence of skin disorders. This market, poised to grow annually by 11% to reach $49 billion by 2030, is now of significant interest to financial sponsors such as private equity and institutional investors, facilitating further consolidation. Additionally, robust economic trends support increased consumer spending, while factors such as an aging population continue to drive demand in medical and cosmetic dermatology services. Despite potential obstacles like rising inflation, practices are advised to focus on efficiency to offset these challenges. Bundy highlights the enduring strength and revenue potential of dermatology practices, making them attractive for buys and increased valuations.