Here are 10 updates pointing to shifts in dental M&A:
1. Private equity-backed dental groups should prepare for intensifying congressional oversight as lawmakers expand scrutiny of PE’s role in healthcare.
2. Several states have recently introduced or passed legislation to limit corporate entities’ ownership of dental practices and their influence on clinical decision-making.
3. 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.
4. 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.
5. Private dental practice ownership has fallen from 85% in 2005 to 73% in 2023, and solo practice has declined from about 67% of dentists in 2005 to about 50% in 2024, according to data from the American Dental Association’s Health Policy Institute.
6. The American Dental Association is projecting consolidation of dentistry to be about 35%.
7. Many DSOs are offering deals with 60% to 85% of the total consideration paid as cash at close.
8. The global DSO market is projected to grow from $190.7 billion in 2026 to $368.5 billion by 2030. Some of the factors that will contribute to the field’s growth include increased adoption of digital back-office solutions, the continued consolidation of dental practices, growth of multi-specialty networks, and increased investment from private equity.
9. Several DSOs have merged with or have been acquired by larger organizations this year. Roseville, Minn.-based Park Dental Partners most recently agreed to acquire Village Family Dental DSO in a deal worth up to $46M.
10. Twelve states have seen some of the highest number of DSO deals over the last three years, including California, Florida and Illinois.
At the Becker's 5th Annual Future of Dentistry Roundtable, taking place September 14-15 in Chicago, dental leaders and executives will gain insights into emerging technologies, practice growth strategies and the evolving landscape of dental care delivery, with a focus on innovation, patient experience and operational excellence. Apply for complimentary registration now.
