Private equity companies continue to be a driving force in dentistry despite a few recent setbacks.
Seven updates:
1. Scottsdale, Ariz.-based Shared Practices Group, a 48-location DSO, received a strategic minority investment from M-One Capital, a private equity firm.
2. Private equity-backed dental groups should prepare for intensifying congressional oversight as lawmakers expand scrutiny of PE’s role in healthcare, according to the Holland & Knight law firm.
3. Several states have recently introduced or passed legislation to limit corporate entities’ ownership of dental practices and their influence on clinical decision-making.
4. Healthcare service deal count was down 18.5% year over year in the second quarter, according to Pitchbook. This was attributed to weakness across generalist and multispecialty providers, physician practice management companies, and skilled care & behavioral health. Dental was among several sectors with aged inventories among private equity-backed companies, with at least 20 companies with holding times of at least seven years.
5. Morrisville, N.C.-based Affordable Care completed a recapitalization transaction to reduce debt and improve its financial foundation for long-term growth. The recapitalization reduced the DSO’s debt by $1 billion, or about 65%, provided $75 million in new capital and extended debt maturities to 2031.
6. Lincoln, Neb.-based Paradigm Oral Health completed a surgeon-led buyback of BlackRock Long Term Private Capital’s majority ownership stake.
7. At least 175 dental practice locations were sold to DSOs, private equity groups and other buyers in the first half of the year, according to a July report from TUSK Practice Sales.
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