The trends dominating dental M&A
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
Tighter SBA underwriting rules and state bills limiting DSO ownership are changing deal terms, valuations, and ownership structures for dental practices and DSOs.
Key points
- Federal Reserve raised its target rate to 3.75%-4% on and Small Business Administration underwriting rules, requiring a 1.25x debt service coverage ratio, a 36-month seller note standby period, and an independent quality-of-earnings review on deals above $3 million.
- A Canadian company entered the U.S. market and a three-way merger created one of the country’s largest DSO networks.
- DSOs are rejecting acquisitions because of provider risk, clinical continuity concerns, declining financial performance, and reimbursement exposure.
- Several states introduced legislation to limit corporate ownership of dental practices and restrict corporate influence on clinical decision-making.
Who should care
Read the original on Becker's Dental + DSO Review
Full reporting and any paywall content live on beckersdental.com. We summarize and score; we do not republish.
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