Here are six statistics and trends highlighting the shifting practices of private equity companies in the dental industry:
1. Private equity-backed DSOs accounted for 16 of 51 dental transactions that took place during the third quarter.
2. More than 20 PE-backed dental platforms are seven or more years into their hold periods — setting up a wave of DSO recapitalizations, secondary sales and potential IPOs that is expected to reshape the acquisition landscape over the next 12 months.
3. Four states have passed healthcare oversight laws so far this year, which could create challenges for private equity-backed dental groups.
4. Although executives don’t expect private equity to leave dentistry any time soon, some predict it will change form as the economy shifts and technology evolves.
5. Several of the largest DSOs are owned by private equity firms that have helped fuel the companies’ technology investments and network expansions.
6. More than a dozen DSOs have landed private equity investments over the last few years to fuel growth, including Lone Peak Dental Group, Allied OMS and Max Surgical Specialty Management.
