HIGHBusinessTier 1

Private equity promised dentists a payday. Many got a pay cut instead.

SourceBecker's Dental + DSO ReviewTier 1Hard News

By Ariana Portalatin

Originally at beckersdental.com

Summary & scoring by The Bell Brief (Dr. Jennifer Bell) using the Drill-Down Protocol (Drill-Down Score) — not the original publisher.

Why it matters for dental

Dentist practice owners and associates evaluating private-equity roll-ups should recalibrate exit expectations, as many recent transactions have delivered lower compensation than promised and added restrictive covenants that limit future earnings.

Key points

  • Greg White, DMD, president and CEO of PepperPointe Partnerships (Lexington, Ky.), addressed the issue during Becker’s Future of Dentistry Roundtable held -15.
  • Private-equity-backed deals that were marketed as immediate paydays have instead resulted in pay cuts accompanied by non-compete or earn-out clauses for some dentists.
  • The discussion highlighted both the capital and operational benefits private equity has injected into dentistry and the new contractual trade-offs clinicians are encountering.

Who should care

OwnerAssociateDSO

Read the original on Becker's Dental + DSO Review

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