Oral Surgery & Specialty Dental Private Equity – Market Update
Over the past year, the landscape of oral surgery has undergone a dynamic transformation, emerging as a focal point for many leading healthcare focused private equity firms. In 2023, the industry has seen an unprecedented level of activity as more private practice oral surgeons see the long-term value of a private equity partner. Despite this surge, the market remains highly fragmented compared to other physician sub-sectors within healthcare. The strategic effort to emulate physician focused successes in other surgical subspecialties is generating substantial momentum, propelling private equity investments into the forefront of many oral surgeon discussions in the future.
The last twelve months have seen existing OMS platforms invest heavily into new markets and new partners with 30 add-on transactions. The market continues to show room for new entrants as multiple new platforms have been founded in the last 12 months inclusive of P3 Oral Surgery (represented by Physician Growth Partners) in their partnership with Healthedge. As new platforms enter the market, PGP expects a continued surge in add-on level transactions across the country.
Given broader economic forces stabilizing, PGP anticipates a number of the established OMS platforms to pursue and ultimately consummate “2nd bite” transactions in 2024. These successful exits will present stout case studies of the success private equity and oral surgeons can have together. Early movers and entrepreneurial minded oral surgeons who partnered with MSOs and DSOs years ago will be well positioned to achieve substantial gains as liquidity events approach. While the market may no longer be untapped, there’s still a wealth of opportunity for current physician owners.
In the current environment, hiring an advisor has become indispensable for unlocking economic value and securing favorable deal terms. The heightened activity brings about a greater variability in the buyer universe, making it crucial to assess all potential outcomes meticulously. In this era of heightened activity, choosing the right partner requires a thorough evaluation of all possibilities, and having an advisor on board ensures a strategic and informed approach to navigate this nuanced terrain.
Interested in how private equity can help your Oral Surgery practice?