Company Overview
American Healthcare Capital is pleased to present an M&A opportunity to acquire a well-established Dental Support Organization (DSO) operating across 13 locations throughout several major U.S. markets. With a large and experienced network of providers, this DSO provides a comprehensive range of dental services, including hygiene (25-35%), restorative care (15-20%), and crowns (15-20%), alongside a variety of specialties available at each location.
Financial Overview
The company’s current payer mix is approximately 55% Commercial Insurance and 45% Private Pay. Over the past few years, the company has shown consistent growth. In 2022, the company collected $22,557,101 in gross annual revenue with an adjusted EBITDA of $6,936,792. In 2023, revenue increased by approximately 17%, with collections totaling $27,617,033 and an adjusted EBITDA of $6,893,139. For 2024, the company is on track to collect around $28 million in gross annual revenue with a projected adjusted EBITDA of approximately $6.5 million.
Growth Opportunities
This DSO has significant potential for further expansion, with growth opportunities in extending service hours (weekends and evenings) and negotiating higher insurance rates. Supported by a talented, experienced management team, the organization is positioned as a market leader with a strong referral network and operational efficiency. This acquisition is ideal for a buyer seeking to enter or expand within the dental sector with an established, high-performing multi-location DSO in a major U.S. market.
Staff Overview
The staff is expected to stay on under new ownership. The owner is open to remaining for a brief transition period to ensure a smooth handover.
Asking Price
The asking price for this opportunity is $40 million.
