Viper Equity Partners Prediction for the Dental Consolidation Market: The Grass is Going to be Much Greener
PALM BEACH, Fla., May 19, 2020 /PRNewswire/ -- Dental practices across the country have been reopening to no shortage of waiting patients, eager to book an appointment. Many offices have been working extended hours on a seven-day-a-week schedule. It is a refreshing reality after a couple of months of home quarantine. Hygiene schedules are booking out into fall and dental specialists are facing heavily booked schedules throughout the summer. For the doctors it is a tremendous feeling to be back doing what they love, and an encouraging sign that everything will be back to normal in short order.
There is absolutely nothing to suggest that the recent market disruption will impact the dental consolidation industry. "Over the last two months we have received over 30 offers for our clients from Dental Support Organizations and have executed 22 of them," states David C. Branch, principal at Viper Equity Partners. "The valuation multiples have been the same as they were six months ago, as they should be. We are seeing some additional hold backs that will be released upon practices getting back to 2019 numbers, but that is to be expected," Branch added.
Jonathan Guise, vice president of dental operations at Viper, works with dentists nationwide looking to transition into DSOs. "What I have seen is a flood of marquee practices coming to market looking to join a DSO. We are speaking with more than 20 practice owners a day and helping them prepare to enter the market. On the other side, the buyers are more aggressive than ever, looking to get more practices under contract," Guise adds. "We are not surprised by this. It's dental, it's private equity, it works, and it makes sense especially now."
Viper Equity Partners is the country's leading investment bank and M&A advisory that works with dentists and dental specialists. The firm assists dental practitioners with opportunities in joining partnerships, transitioning into DSOs and planning their exit strategies. Recent events have made clear the benefits of weathering tough times alongside a partner with deep pockets and resources. "Practice owners with lots of equity in their business need to pay attention to what these recent months have revealed," Guise suggests. "They need to explore options to lower their risk, take some chips off the table and explore strategies for their future."
Viper realized an increase in market activity at the beginning of the first quarter of 2020 and is now seeing an uptick in the second half of the second quarter, with practices recuperating losses from recent closures. "This industry is in the early stages," Branch continues. "People are going back to the dentist, spending habits are not changing, and this industry will be stronger than before. This is a tremendous industry and will continue to flourish year after year."
Contact: David C. Branch, Principal | dave@viperequitypartners.com | 305-988-5945
About Viper
Viper Equity Partners is America's leading M&A advisory and investment bank in dentistry, dermatology, and plastic surgery, with over $1.8 billion closed since 2009 and 110 transactions closed in 2019. Viper's M&A relationships with family offices and private equity-funded organizations are unique. The Viper Team consults with practice-owning doctors and roll up groups from potential integration and marketing to offer negotiations and diligence to the closing table with high velocity. For more information, visit www.viperequitypartners.com.