Company Overview
American Healthcare Capital is pleased to exclusively represent a rapidly expanding dental group that is revolutionizing traditional dental care by integrating medical and cosmetic treatments into a patient-centric model. The company operates through a network of specialized central hubs and satellite clinics, which increases access to cutting-edge treatments while maintaining a consistently high quality of care. Their approach focuses on blending the quality of care with an exceptional patient experience.
Business Model
The company’s innovative business structure and multidisciplinary approach address various health concerns, such as craniofacial anomalies, sleep apnea, and TMJ disorders. Through vertical integration and the support of a state-of-the-art laboratory, they offer a wide range of services, enhancing both comprehensive care and revenue generation.
Market Position
With a solid market presence and a growing patient base, the group is well-positioned to capture emerging opportunities in the healthcare sector. Their competitive advantage comes from combining advanced technology, personalized care plans, and value-driven care models, setting them apart from traditional Dental Support Organizations (DSOs). By attracting forward-thinking dentists and pursuing several acquisitions, the company continues its steady growth throughout California and beyond.
Future Expansion
The company plans to expand geographically by acquiring contemplated high-quality fee-for-service dental practices, particularly those that don’t fit the typical high-volume DSO model. By leveraging their technological innovations, such as tele-dentistry and a holistic care approach, they aim to increase patient transaction sizes and hourly productivity. They aim to provide clinical and technological integration for existing groups as well.
Financial Performance
The company has demonstrated strong financial performance with net revenues of approximately $11.06 million in the 12 months ending June 2024, expecting to finish 2024 with $11.5 million in revenues. The company’s centralized lab and strong acquisition pipeline position it well for continued growth, with a projected EBITDA of $10 million or more within two years by acquisitions and organic growth.
Investment Opportunity
The founder and management team are immediately seeking both a capital and strategic partner to help scale the business across the U.S. They are open to flexible deal structures, including a majority equity sale and roll-over equity. All personnel, including the management team, are expected to remain in place post-acquisition.
Valuation & Asking Price
The asking price is yet to be determined through discussion and negotiation and to include an equity earn-out. American Healthcare Capital’s Fair Market Valuation suggests a 10x EBITDA multiple, supported by the following factors:
- The company’s unique model that integrates dentistry with medicine.
- The founder and management team’s commitment to remaining involved, minimizing operational risks for investors.
- A scalable business model with substantial barriers to entry for competitors and blue ocean opportunity to acquire high quality, highly productive, fee for service dental practices.
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