Oral and maxillofacial surgery will continue to be targeted by private equity due to its growth opportunities and history of success, one executive predicts.
Jason Auerbach, DDS, the co-CEO of Hackensack, N.J.-based MAX Surgical Specialty Management, recently spoke with Becker’s about his company’s growth and the future of oral surgery.
Editor’s note: These responses were lightly edited for clarity and length.
Question: How would you describe MAX’s growth so far this year?
Dr. Jason Auerbach: MAX’s growth has been great. We’ve had a ton of interest, specifically in the Northeast region where we focus, both in terms of partnerships and in terms of recruiting younger surgeons to join the platform. We’ve had a ton of success and continue to grow really ahead of our plans, so things are very good for us.
Q: What else can we expect to see from the company this year in terms of organic and inorganic growth?
JA: We still continue to focus on top-line growth in an environment in which we’re seeing headwinds across the industry. MAX practices, by and large, are doing very well. Same store or practice level growth has actually been very good [and] very healthy. We are about to enter a pretty substantial, impressive market. We’re about to make a couple of announcements this month and close on a couple of practices in a geography that is highly desirable and certainly within our region.
Q: What can you tell me about private equity’s continued interest in oral surgery and how that’s contributing to the field’s evolution?
JA: I think more and more people are seeing oral and maxillofacial surgery as really a tremendous opportunity. It’s a healthy business. There are strong margins, and it’s a nuanced business. I do think you’re going to see some private equity investors that are maybe not as aware of the nuances of this specific specialty, who may or may not do as well, and then those who really understand the surgeon mentality and the focus on the surgeon, not just the focus on EBITDA and analytics and things like that, are going to start separating themselves clearly from the pack. As long as the macro economy continues to be strong, you’re going to start to see a continued interest in the field.
Q: What are some of your predictions for how oral surgery will continue to evolve over the next two to three years?JA: I think there’s going to be more of a focus on [artificial intelligence] and automation and trying to figure out ways of more efficiently doing things. Oral surgery in particular is such a local business. The relationships between the platform and its surgeons, and between its surgeons and the referral networks that exist for those surgeons are so important. The fact is that it’s really all about the relationships and all about the surgeons when it comes to the bottom line.
