The dental subsector has continued to garner interest from healthcare investors over the past several years, largely because the subsector remains fragmented, writes the McGuireWoods law firm for JD Supra. This offers numerous opportunities for buyers, particularly dominant acquirers in the dental space that are private equity-backed and certain other strategic providers, who are driving continued competition for add-on and platform dental transactions.
While transaction activity was somewhat sluggish during the end of 2020 and early 2021, as was the case for many healthcare subspecialties, dental transactions picked up as 2021 and 2022 progressed, leading to a highly competitive market. Expect acquisition interest in this subsector to persist for many reasons, including growing demand for professional management, opportunities for ancillary development in connection with scaled practices, economies of scale provided by consolidated platforms, and a demand for capital to use in expansion. Read more.
