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
TUSK has represented Endodontic, Oral Surgery, Pediatric, Orthodontic, Pedo-Ortho, Sleep, Anesthesia, Periodontic and Prosthodontic practices and groups over the last 5 years by taking them through a Marketed Sales Process to expose them to all buyers in the market, maximize their value through negotiation and squeezing the buyers for every last penny and ultimately, helping them select the right partner.
Hear from our clients at an 8 Location Pedo-Ortho Group on why they chose TUSK even when the had an Unsolicited Offer. ⤵️
With more and more buyers in the market, they are getting more aggressive in their marketing to Specialists. They are going directly to these groups (to you) in hopes of buying them directly so that they can avoid having to participate in a competitve process. As you may have guessed, DSOs don’t like paying more than they must when buying businesses. They know that the cheapest way to buy a business is directly. When TUSK is involved, they know that they will pay more. These DSOs know that we will share insights about the leadership, private equity investors and quality of the equity that they are offering. We will also pit these buyers against one another to drive up the economics well above what they would pay in an unrepresented and un-marketed deal.
Register for our Specialists Market Update Webinar on May 4th, 2022!
"Team TUSK kicked ass – these guys are awesome. They increased our unsolicited offer by almost 100%. We thought the first offer we got on our own was pretty good, but in hindsight, we would have been crazy to take that offer." -Owner 6 Location Oral Surgery Group
When I was at the ADSO meeting a couple of weeks ago in Austin presenting to attendees on the current state of the M&A markets many CEOs of Oral Surgery, Endodontic, Pediatric and Orthodontic DSOs sought me out to complain that they were tired of having to “overpay” for deals that we represented in the market. They wish that I could do something about it. The reality is that when TUSK represents a client, we run a competitive process by bringing all the buyers (Specialty-Specific and traditional multi-specialty groups) to the table. We inform the buyers of what it will take to be competitive in the process then allow all buyers to bid against one another to maximize the price. Once all bidders are at best and final bids, our client selects which group is the best fit for them culturally, strategically, and economically. In short, TUSK brings the market to our clients and the market sets the price.
Below are a couple of recent examples where clients came to us with an offer in hand, we took them through a TUSK Marketed Sales Process and closed their deal with much richer economics:
If you would like to learn more about TUSK, or want us to review an unsolicited offer that you have received from a DSO, or simply want to learn what your group might be worth, click here to book a call:
We look forward to getting to know you and understanding your business. We love driving up the price for our clients and we ALWAYS pay for ourselves.
"TUSK pays for themselves multiple times over." – Owner 2 Location Orthodontics Group
