Defying Odds: The Persistent Resilience of Dentistry in Times of Adversity

At Viper, as intermediaries and advisors in the medical industry, we have a unique vantage point for both dental practice buyers and sellers. Today, we are discussing an impressive trend that affects both sides of the table: the resilience of dentistry.

Dentistry has proven itself resilient. Many, if not most, of the practices we have spoken to in the last 6 months have recovered to 100% of their pre-COVID numbers, with many practices doing even better than this same time the previous year.

Undeniably, many practices around the country have closed, but our analysis shows that those were stagnant practices, and 2020’s hardships only accelerated their eventual close. Strong practices, on the other hand, are thriving and have proven that dentistry is a strong and pandemic-proof industry.

Strong practices are the winners.

In our conversations with dentists across the U.S., it has become clear that strong dental practices have fully rebounded. This is despite mandatory business shutdowns and many people’s reluctance to visit a dentist in the middle of a pandemic. These exemplary practices do an excellent job of communicating with their patients, informing them of the various sanitation protocols practices are being implemented, and thus putting patients’ minds at ease about coming into the office.

DSOs and private equity have taken notice.

This trend is not only revealing itself on the dental practitioner’s side. DSOs and private equity-backed buyers are also taking note, ramping up their buying activity, and actively presenting letters of intent (LOIs) to dental practices. This has become particularly pronounced as DSO buyers have been aggressively presenting LOIs for specialty practices since the beginning of the year.

Whereas the shutdowns and wary market created uncertainty in the first half of 2020, DSOs now have data on what business during a pandemic looks like. This builds confidence among DSOs, allowing them to continue their buying activity even as the country enters winter.

The dental industry has emerged strong, with both practices and dental practice buyers showing a positive trend. At Viper, we are the leading advisors for practice owners transitioning to a DSO. Call us today to learn more about what partnering with a DSO can do for you and your practice.