David C. Branch has been entrenched in the medical industry for 30 years. He has owned both venture capital and private equity firms. Branch founded one of the country’s largest radiology MSOs before partnering with GE Capital, and later selling after a successful run. Today, he is a ‘back seat chairman’ for Viper partners, a U.S. investment bank focusing on oral surgery deals.
Oral surgery has proven to be a huge winner for multi-specialty and oral-specific DSO’s, Branch said. Oral surgery practices 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 revenues in dentistry with (in most cases) moderate expenses. Private equity firms have also jumped into this space, purchasing multi-office opportunities with $10M+ in EBITDA.
Surging multiples are another driving force in the oral surgery market. Viper has initiated 10x multiples as a starting point, for larger deals, according to a press release. Read more.
