Ready to navigate the complex landscape of radiology practice transitions? Our specialized M&A advisory services help practice owners maximize value while ensuring continuity of patient care.

Radiology Market Overview

The radiology sector continues to experience robust M&A activity, with multi-location practices typically commanding 6-8x EBITDA in current market conditions. Practice valuations remain strong despite economic headwinds, particularly for groups with diversified service lines and established referral networks.

Radiology Practice Acquisition Trends

Private equity investment in radiology remains vigorous, with several platform expansions announced in Q1 2023 as groups seek scale to address operational challenges. Strategic buyers like health systems are increasingly competing for high-performing radiology practices, driving competitive bidding scenarios and favorable terms for sellers.

Key factors driving current radiology M&A activity include:

• Workforce shortages with demand for imaging studies growing at 5% annually while the radiologist workforce expands at only 2%, creating operational pressures that favor consolidation
• Significant investment in AI technology with $1.65 billion invested last year, transforming workflow efficiency and creating competitive advantages for well-capitalized groups
• Growth in mammography services with projected volume increases of 9% through 2028, making women’s imaging a particularly attractive service line for acquirers
• Relaxation of Certificate-of-Need laws in several states, opening new markets for expansion and creating opportunities for practice growth
• Shift to outpatient care with hospital-based imaging increasingly moving to ambulatory settings, expected to reach 46% of imaging procedures in outpatient centers
• Growth in teleradiology capabilities enabling practices to expand coverage and subspecialty expertise without geographical limitations

Understanding your practice’s current market position is the first step toward a successful transition.