DSO Deal Roundup – November 2023

Dental support organization (DSO) and dental group practice consolidation continues to remain steady. Group Dentistry Now is the only resource providing a complete list of monthly deals in one convenient place, keeping you informed on the ever-shifting dental landscape.  Here is GDN’s exclusive list of DSO and emerging group deals for November:

TUSK Partners advised Reed Orthodontics (Naples, FL) in its affiliation with Southern Orthodontic Partners. The transaction was led by Josh Swearingen, Director of Mergers & Acquisitions at TUSK Partners. Alex Cherniavsky and Sam Lupton spearheaded the diligence and analytics efforts for TUSK.  Dr. Barbara Reed founded Reed Orthodontics over 20 years ago.

MB2 Dental welcomed nine new doctor partners across six states:

  • Mose Family Dentistry in Highland, IN, Acquisition
  • Metropolitan Dental Arts in Brooklyn, NY, Acquisition
  • Austin Park Dental in Barberton, OH, Acquisition
  • Just Smiles in Scottsdale, AZ, Acquisition
  • Giangreco Family Dentistry in Webster, NY, Acquisition
  • Smiles 4OC in Costa Mesa, CA, Acquisition
  • Primary Dental in Denver, CO, Acquisition

Heartland Dental welcomed new supported practices:

  • Bayview Dental Care in Pensacola, FL, led by Dr. Gordon S. Scheurich
  • Dentila in Orlando, FL, led by Axel Castro, DMD.

Endodontic Practice Partners welcomed Endodontics of Malden, Massachusetts, led by Dr Fernandes and Dr. Priya Singh.

Bond Orthodontics partnered with

  • Robert Chen, DMD, MS, New Age Braces, which serves Cupertino, Saratoga, San Jose, Los Gatos, Sunnyvale, Mountain View, Los Altos, and greater South Bay CA communities.
  • Frank Beglin DDS MS, Beglin Orthodontics, which serves Carson City, NV, Bishop, CA, Mammoth Lakes, CA, and the wider Eastern Sierra Nevada region.

Legacy Dental Group acquired Chattanooga Family Dentistry. This is the fourth acquisition since the group was founded. Headquartered in Chattanooga, the group plans to operate throughout East Tennessee. Legacy Dental Group was founded by Dr. Ankar, Dr. Soni, Shalin Tejani and Matt Hullander.

Dental Care Alliance (DCA) announced newest additions:

  • Valley Dental, a single-location general practice located in La Crosse, Wisconsin. Valley Dental was founded in 1993 by the current owner, Dr. Michael Gavin.
  • Webster Cosmetic and Family Dentistry of Dover, DE. The practice is owned by Dr. Robert Webster.

Private equity firm Cathay Capital announced that it has invested in dental service organization (DSO) Parkview Dental Partners. This investment is the inaugural North American investment from Cathay’s Growth Private Equity Fund (Small Cap IV), which announced a final close in June 2023. Cathay’s investment, in partnership with Parkview’s management team, will accelerate the Company’s expansion in Florida’s $9 billion dental services market.

Founded in 2018 in Sarasota, Florida, Parkview is a DSO that currently manages 22 dental practices that provide both general dentistry and specialty dental services. Parkview operates in the dynamic Southwest Florida market, characterized by population growth at 3x the national average, an aging population with higher dental care needs, and robust GDP growth. The Southwest Florida dental market remains highly fragmented, with a large number of unaffiliated dentists in the region. The growth in patients, dental procedures, dentists, and support staff in the Company’s footprint is expected to be above the national average.

Since its founding, Parkview has expanded from eight practices to 22 practices today, having grown revenue at a 50% CAGR since 2019 through organic initiatives and by successfully completing accretive acquisitions. Through the new partnership with Cathay, the Company will look to scale by acquiring new practices and adding ancillary dental services. Parkview is led by CEO, Will Schlotthauer.

  • Secured funding for the Virginia-based Lorton Dental Implant & Oral Surgery Center, which has offices in Mt. Vernon and Springfield. The funding will be used to restructure existing debt, relocate and build out current facilities, and provide a growth facility for practice acquisitions and expansions.
  • Acted as sell side advisor to Relax Dental of High Point, North Carolina in its sale to Riccobene Dental Group.

dentalcorp reported third quarter 2023 results:

Strong base business performance with acquisition pacing on track for the second half 2023. 

Third Quarter 2023 Highlights:

  • Revenue of $336.9 million, an increase of 7.9% over the same period in 2022, with Same Practice Revenue Growth(1) of 5.2%
  • Adjusted EBITDA(1) of $60.9 million, an increase of 2.4% compared to the same period in 2022; Adjusted EBITDA Margin(1) of 18.1%
  • YTD Same Practice EBITDA Growth(1) of 6.5% with Adjusted EBITDA Growth From Acquisitions Completed in Prior Period(1) of 12.0%
  • Adjusted net income(1) of $20.1 million
  • Adjusted free cash flow(1) of $26.3 million, with net leverage levels of 4.4x
  • Acquired three practices in the quarter representing $1.4 million in PF Adjusted EBITDA after rent(1) at 5.9x, representing multiples 34% lower than the same period in 2022

Fourth Quarter 2023 Outlook:

  • Revenues and Same Practice Revenue Growth(1) are estimated to increase by 9.0% to 10.0% and 5% to 6%, respectively, over the fourth quarter of 2022
  • Adjusted EBITDA Margins(1) are expected to be consistent with YTD 2023
  • Expect to complete acquisitions representing PF Adjusted EBITDA after rent(1) of approximately $8.5 million for an aggregate of $10 million in the second half of 2023

(1) Non-IFRS financial measure, non-IFRS ratio or supplementary financial measure. See “Non-IFRS and Other Measures” section of this news release for definitions and quantitative reconciliations.

Guardian Dentistry Partners welcomed Dr. Shlafer of Farmington, Michigan

Grand Opening of Affordable Dentures & Implants in:

QV Dental joined Aussie-based Impression Dental Group portfolio of practices in VIC. Located in the heart of Melbourne CBD, the four-chair dental practice continues IDG’s expansion in their hometown Victoria. QV Dental is led by Dr. Axel Ecke.

Qatar Investment Authority (QIA) makes an equity investment of $50 million in Global Dental Services, the parent company of Clove Dental. Clove Dental (a brand name of M/s. Star Dental Centre Private Limited) is the largest network of dental clinics in India. Read more here.

Boutique, California-based Silver Creek Dental Partners is now affiliated with:

Shared Practices Group (SPG) welcomed newest partner, Houston Dentures and Implants.

Guided Practice Solutions (GPS Dental) expanded footprint to include:

Gen4 Dental Partners acquired Dakota Dental and Minnesota Dental Surgery & Implant Center, led by Dr. Bennett Isabella.  He is also a Fellow of the International Congress of Oral Implantologists, the American Dental Society of Anesthesiology, and the Academy of General Dentistry. 

Great Expressions Dental Centers hosted a grand reopening event for their Monroe, NY location. 

Specialized Dental Partners added:

  • Dr. Keith Evans and Dr. Blake Swaar from Endo of Illinois in Bloomington, IL
  • Dr. Horst Stehle from Periodontology, Inc.
  • Dr. Eric Weinstock from Cobb Corner Endodontics in Canton, MA
  • Dr. Bryan Geerlings from Geerlings Endodontics in Newman, GA
  • Dr. Jason Smith
  • Dr. Leland Kimball from the Center for Endodontic Care
  • Dr. Clint Falk from Falk Perio in San Antonio, TX.

Dentologie opened ninth location, in Lincoln Park, Illinois.

Dental Associates of CT welcomed New Britain Dental Arts and Manchester Family Dental. 

Beacon Oral Specialists, founded just three years ago, has grown to 120 surgeons, 28 practices and 93 offices, including their latest partners:

  • DFW Oral Surgery & Implant center, led by Dr. Thad Taylor, Grand Prairie, TX
  • Yellich & Salehpour Oral Surgery, led by Dr. George M. Yellich and Dr. Ali Salehpour, Monterey, California

Physician Growth Partners advised Charleston, WV-based Mountain State Oral and Facial Surgery, Charlotte, NC-based Greater Charlotte Oral and Facial Surgery and their management organization, Pluri Potent Partnership (P3), in their recent partnership with HealthEdge Investment Partners, a healthcare focused private equity firm based in Tampa, Florida.

Led by a group of oral and maxillofacial surgeons, MSOFS & GCOFS have been serving the West Virginia and North Carolina markets for over 25 years. The practices span 12 clinic locations and offer a comprehensive suite of services to their patients. The Company’s management services organization (MSO), P3, was established in 2018 and has provided management services inclusive of marketing, purchasing, and service line development since inception.

In its partnership with HealthEdge, P3 is forming the newest private equity backed Oral Surgery Platform in the market.

Dental365 announced the acquisition of the well-established dental practice of Dr. Michael T Ward located at 61 Newton Sparta Rd, Newton, NJ 07860. With this strategic move, Dental365 further solidifies its commitment to delivering dental services to the Sussex County, New Jersey community. Dental365 is a full-service dental group offering general dentistry and specialty services with locations throughout New York, Connecticut, New Jersey, Pennsylvania, New Hampshire, Massachusetts, and Rhode Island. 

Sage Dental opened more Florida locations:

  • Sage Dental of Rivertown led by Dr. Silvia Saavedra Gomez
  • Sage Dental of Lady Lake led by Dr. Kevin Brooks
  • Sage Dental of Jacksonville at Town Center led by Dr. Brock Philips
  • Sage Dental of Loganville led by Dr. Shami Gokhal
  • Sage Dental of St. Johns

The DSO Deal RoundUp is sponsored by TUSK Partners, the premier M&A Advisor for Large Practices and DSOs looking to maximize the value of their practice in a sale. With an in-depth understanding of the marketplace, collective experience of over 50+ years, and access to 100’s of buyers nationwide, TUSK helps their clients confidently pursue M&A transactions that maximize their long-term value. They offer their clients solutions that help them achieve their strategic and financial objectives. If you’re interested in knowing the true value of your practice, click here for a complimentary practice valuation.

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