After securing over 150m dollars in transactions boasting 30m in EBITDA so far in 2021 Viper Equity Partners predicts continued heavy buying in the oral surgery space. Viper began underwriting oral surgery deals aggressively in October 2020. They also came to market with their OS Prime rollup boasting 70m in annual revenues. “We saw oral surgery as the next big market,” stated David C Branch Viper’s founder. “We put marquee deals together and brought them to some of our Top DSO buyers, in many cases we had to push them to follow our lead and buy,” said Branch.
Oral surgery has proven to be a huge winner for multi-specialty and Oral Specific DSO’s. Oral surgery offices tend to be very organized, highly profitable and the doctors adapt well to joining large organizations. In an industry that thrives on scale the oral surgery practices produce some of the highest revenue in dentistry with amazingly moderate expenses in most cases. PE firms have also jumped in picking up multi office opportunities with 10m plus in EBITDA as a new vertical.
Viper feels it is important to advise its buyers on opportunities and growth strategies. Their focus is the success of the process not just of the Practice seller. “The Dentist is our client and matching them with the right partner or DSO is paramount to us. But we also like to go further and help our buyers expand their scope by making them aware of different geographies and specialties that fit their goals. It is all about the industry and everyone’s success,” stated Branch. Viper anticipates a very active rest of 2021 in oral surgery.
Another thing driving the market in dentistry is the looming shift in capital gains. Although the present administration has lightened their stance on a major hike, a change in 2022 will happen. Smart sellers looking at a possible transaction are flocking to companies like Viper for guidance and education. All sellers should meet with their CPA’s and an investment bank to see what the impact of the shift could mean to them financially. All in all the dental market is still in its early stages of consolidation. Expect a solid five year run from here with very active markets.
Viper Equity Partners is America’s leading M&A advisory and investment bank in dentistry, dermatology, and plastic surgery, with over $2 billion closed since 2009. Viper’s relationships with family offices and private equity-funded organizations are unique. The Viper Team consults with practice-owning doctors and roll up groups for potential integration and marketing to offer negotiations and diligence to the closing table with high velocity. For more information, visit www.viperequitypartners.com.
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