General Dentistry Private Equity - Physician Growth Partners

General Dentistry Private Equity – Market Update

Winter 2024


From the inception of private equity investment in healthcare services in the 1990’s, general dentistry has been a major specialty of interest. While other subspecialities have received investment from private equity sponsors for the first time within the past 5-10 years, Dental Support Organizations (DSOs) have been around for over two decades. Despite the long-term consolidation efforts, acquisition activity continues to outpace other healthcare specialties in terms of total deal volume.

With over 100 active DSOs in the market, general dentistry has garnered market leading interest amongst healthcare investors. Private equity investors utilize a handful of value creation strategies for partner practices, including supply cost enhancements, reimbursement increases, and support with recruiting providers and administrative staff. Current economic headwinds have caused increased pressure on practice shareholders, making DSOs an attractive opportunity to alleviate economic and administrative burdens.

Current M&A within the dental market has created continued interest from private equity investors and has displayed a number of successful second and third bites for shareholders. Historically, general dentistry was the focal point for DSOs, but recent trends have shown an increased appetite for platforms to include specialty dental services including oral surgery, endodontics, pediatric dentistry and periodontics, among others.

Dentists have a wide range of options when it comes to which DSO they’d like to partner with– all at different capital partners, investment lifecycles, and growth strategies. Platforms may pursue a national, regional or local market. The momentum of investment within general dentistry has given the market confidence that interest will maintain strong into the future. While new DSOs are still being formed, the focus has shifted more toward specialty services within the dental space.

General dentistry remains in the later stages of consolidation, but it is not too late to explore a potential partnership. Continued M&A volume, a highly fragmented competitive landscape, and a number of tangible value creation levers has made general dentistry an exciting space to be in. The opportunity to partner with a DSO to alleviate administrative burden, increase purchasing power, enhance reimbursement and bolster recruiting has never been stronger.

When evaluating a potential private equity partner, it is critical to consider cultural fit, as well as value, as strategy differs highly from platform to platform. Key aspects such as clinical autonomy, integration, management fees, and governance must be considered to ensure a fruitful partnership.

Largest Dental Support Organizations

Recent General Dentistry Transactions

DateTargetPlatformPE SponsorState
October 2023Brush Dentistry | Derby DentalPearl Street Dental PartnersSkyKnight CapitalTX
October 2023Narducci Dental GroupSage Dental GroupLinden Capital PartnersFL
October 2023Quakertown Family DentalDental365The Jordan CompanyPA
September 2023Lane PerioSGA Dental PartnersThurston GroupAL
September 2023Susquehanna Valley Dental GroupDental365The Jordan CompanyPA
September 2023Eastridge DentalMB2 DentalCharlesbankWI
September 2023Signature Dental ExperienceCordental GroupNMS CapitalIL
August 2023Highland Creek Family DentalMB2 DentalCharlesbankWI
August 2023Implant & General Dentistry of Northern ColoradoHeartland DentalKKRCO

Recent Platform Second & Third Bites

About Our Firm

Physician Growth Partners (PGP) Physician Growth Partners (PGP) is an advisory firm working exclusively with independent physician groups in transactions with private equity.

PGP has completed 15+ transactions in the last 12 months. Our firm is differentiated by:

  • Senior partner involvement at every stage of the process
  • Extensive physician practice transaction experience
  • Unmatched relationships with all key private equity and strategic buyers interested in General Dentistry
  • Educational approach focused on partnership and cultural fit + achieving a market-clearing valuation

Learn More About General Dentistry Private Equity