Specialty Dental M&A Market Update

5 years ago, Specialty Practices and Groups were all but ignored by the DSO buyers in the dental market.  But in recent years there has been a new wave of Specialty Specific DSOs that have hit the market.  These groups have partnered with some of the smartest private equity groups and best names in the industry to form their businesses. As these companies have enjoyed financial success, grown in scale, and recapitalized (thus providing excellent returns to investors), more traditionally GP DSOs have stepped up their interest in Specialty practices and groups as well.  As a result, there are more buyers for Specialty practices than ever before!

Higher Demand for Specialty Practice and Groups = Higher Prices

A baseball reference… which is funny, considering I’m not even remotely interested in the sport. The term… 3 solid hitters starting off the batting order, and then a fourth, batting cleanup has the opportunity for the grand slam, or to knock a runner in… Often the best hitter in the lineup, they certainly have the best opportunity for run production.

So, how in the world does this apply to dentistry? 

You’ve built a successful business. You’re heading down the home stretch and are trying to figure out if it’s time to sell… how to sell… what type of preparation needs to be done heading into a sales process? How do you undertake such a process, without upsetting the performance of the practice(s), while maintaining your team and ensuring you receive a maximum valuation on the back end? How do you hit a grand slam when selling your business? 

Now Is The Time…

M&A is a largely cyclical business… Deals get brought to the table, and a vast percentage of them end up closing either in Q4, or even the week between Christmas and New Year’s celebrations. Everyone is incentivized to get things done before the change of the calendar! However, what further incentivization may exist as we look at spots that don’t traditionally fall in line with the natural cycle of the market?

FOR IMMEDIATE RELEASE (March 1st, 2022)

Kevin Cumbus

TUSK Partners

704-302-1043

Kevin@Tusk-Partners.com

TUSK Partners Advises Coastal Max Oral Surgery & Dental Implant Center on its Sale to Five Point Dental Specialists, a portfolio company of Casla Partners.

TUSK Partners (“TUSK”), the premier dental-focused M&A Advisor, advised Coastal Max Oral Surgery & Dental Implant Center in their sale to Five Point Dental Specialists, a portfolio company of Casla Partners. The transaction was led by Ryan Mingus, Managing Director of M&A at TUSK Partners. Alex Cherniavsky and George May spearheaded the diligence and analytics efforts for TUSK.

After a wonky, bar belled M&A market in 2021 with most transactions all coming in the first and last quarter of the year (#thanksCOVID), in 2022 we witnessed the most active dental M&A market in history.  The market was driven by four major forces:

• Pent up demand on the buy-side
• Fears around tax increases from the Biden Administration
• COVID fatigue related to business ownership
• High demand for specialty practices

FOR IMMEDIATE RELEASE (December 22nd, 2021)

Kevin Cumbus

TUSK Partners

704-302-1043

Kevin@Tusk-Partners.com

TUSK Partners Advises Gendus Dental Management in their Sale to Guardian Dentistry Partners...

TUSK Partners (“TUSK”), the premier dental-focused M&A Advisor, advised Gendus Dental Partners in their sale to Guardian Dentistry Partners, a large and growing family-fund backed Dental Partnership Network (“DPN”).  The transaction was led by Kevin Cumbus, President of TUSK Partners.  Alex Cherniavsky and George May spearheaded the diligence and analytics efforts for TUSK.

5 Things to Know About Do It Yourself (DIY) Deals.

You deserve the highest possible value for the business you've built. Don't go at it alone and leave dollars on the table. Let TUSK's proven process maximize the value of your life's work. 

FOR IMMEDIATE RELEASE (November 4th, 2021)

Kevin Cumbus

TUSK Partners

704-302-1043

Kevin@Tusk-Partners.com

TUSK Partners advises Fairfax Oral & Maxillofacial Surgery on its partnership with Beacon Oral Specialists, a portfolio company of Blue Sea Capital...

CHARLOTTE, N.C., November 4th, 2021 — TUSK Partners acted as exclusive financial advisor to Fairfax, VA-based Fairfax Oral and Maxillofacial Surgery (FOMS) on its partnership with Beacon Oral Specialists (Beacon), a portfolio company of Blue Sea Capital. FOMS is a leading Oral Surgery group in Virginia, with 6 clinic locations across Northern Virginia. The transaction, which closed June 23, 2021, will support continued growth and future acquisitions as the company expands into new markets.

FOR IMMEDIATE RELEASE (October 27th, 2021)

Kevin Cumbus

TUSK Partners

704-302-1043

Kevin@Tusk-Partners.com

TUSK Partners Advises Cumberland Pediatric Dentistry And Orthodontics On Its Sale To Spark Orthodontics, A Portfolio Company Of Rock Mountain Capital...

CHARLOTTE, N.C., October 27th, 2021 — TUSK Partners acted as exclusive financial sell-side advisor to Nashville,TN-based Cumberland Pediatric Dentistry and Orthodontics on its sale to Spark Orthodontics, a portfolio company of Rock Mountain Capital. Cumberland Pediatric Dentistry and Orthodontics (“CPDO”) is a leading multi-location, multi-specialty group in Tennessee, with 8 clinic locations across the state. The transaction, which closed October 15, 2021, will support continued growth and future acquisitions as the company expands into new markets.

Congratulations – you received an unsolicited offer. 

So did every other dentist and group in America.  If you have a practice with over $1M of collections or more than 1 location, it is safe to safe to say that you have been contacted by a buyer and possibly received an unsolicited offer from them. 

Buyers in our market love to connect with dentists and groups directly to help inform them of their EBITDA and value.  Why wouldn’t they!  They get to control the story, the financials, and the process.  This puts them in the driver’s seat in the relationship as they work hard to win you over and shield you from other opportunities in the market.  The less you know, the better for them.