Gary KadiHelping Dentists Build Profitable Practices That Deliver Time Freedom, Clarity, and Sustainable Growth

Dental Industry Shake-Up You Won't Believe

Name: Dental Industry Shake-Up You Won't Believe
Uploaded: 2024-08-05T22:59:44+00:00
Duration: 49 s
Channel: Gary Kadi
Description: Gary Kadi discusses trends in dental industry consolidation, noting that acquisition criteria for practices have tightened due to rising cost of capital…

5 Aug 2024 · 1 min

Watch on YouTube

0:49

Gary Kadi discusses trends in dental industry consolidation, noting that acquisition criteria for practices have tightened due to rising cost of capital. He explains that many DSOs pursued aggressive market-share growth, became over-leveraged, and subsequently failed to recapitalize, breaking promised payouts to selling doctors. The clip focuses on financial pressures (higher interest rates, reduced access to cheap money) as drivers reshaping acquisitions and consolidation pace.

Chapters

Where dental consolidation is headed and when do you think it will level out? The acquisition criteria has really become more stringent, Pam, and a lot higher and that has to do with the rising cost of money. You know, money was a commodity just a couple years ago and now like the access to money and the cost of money is much higher. The other thing that happened was a lot of DSOs were really looking for a market grab, market share. They were trying to get as many practices in and now what has happened is they haven't been able to what is known as recapitalize. They made promises to doctors that they said they're going to, you know, you're going to get paid one time and then when we as a group sell again, you'll get another piece of that action. And because they were over leveraged, meaning they had too much debt when what ended up happening was they couldn't recapitalize.