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dental industry

healthcare services transactions

  • As we enter the middle stage of the DSO consolidation across the U.S., we are seeing continued strategic and investor interest in the large and growing market as it approaches $200 billion by 2027.
  • Growth drivers include:
    • Increasing coverage and financing options for dental services
    • Pediatric and Medicaid reimbursement rates are improving
    • Increasing access to care through growing number of practicing dentists
    • Aging population requiring more frequent care
  • As the market continues to consolidate and mature, we are seeing investors place an increasing emphasis on differentiation in the form of specialty services and service extensions which leverage operators retail expertise. Further, we are witnessing operational rationalization occurring as consolidated entities streamline systems and improve automation to drive profitability. The acyclical demand and resiliency of the sector coupled with the current interest rate environment is driving exceptional private equity add-on transaction activity.
  • Strategics and private equity groups see positive macro tailwinds for the foreseeable future which has contributed to the strong transaction activity with 200 M&A transactions completed in 2021 and 2022 and has led 2023 to a strong start. With fragmentation still present in the market, we see a long runway for the consolidation play to continue. We also see a more favorable reimbursement profile relative to other PPM sectors, which helps prop up activity relative to those other sectors.

For more information or questions, please contact our Healthcare Services team:

Paul Kacik, Managing Director:

Brad Erhart, Director:

Daren Oddenino, Director: