The Second Wave of Dental Acquisitions

Ryan Mingus, managing director or Tusk Practice Sales, wrote an excellent article in Dental Economics. He states that the second wave of dental acquisitions is coming in 2025. He argues that:

• The normalization of interest rates makes the environment more favorable for capital to begin flowing back into the market. The Federal Reserve Bank's aggressive rate hikes in 2022 and 2023 slowed down transaction volume.

• He expects the economy to stabilize in the second half of 2025. Previous uncertainty in the market slowed down the decision-making process for dental support organizations (DS)) and private equity groups.

• As DSOs recapitalize (i.e., get new capital from new partners), they will be under pressure to deploy that new capital, which creates a prime opportunity for practice owners to sell.

Mingus says that history shows that early sellers in these waves saw higher valuations while late-stage seller faced a crowded market with stricter deal terms. Read more here.

Crimson Cardinal Healthcare Intermediary assists medical and dental practice owners in North Carolina, Virginia, and South Carolina in selling their operations. For more information, click here.