It is no surprise that oral surgery and oral surgeons are the hot buy for 2022 with DSO’s and private equity firms. It is truly the gold rush of dentistry. So, we called on the experts David C Branch and Jonathan Guise of Viper Equity Partners to get insight into this amazing industry.
Q: What can a Oral surgery group expect a deal to look like?
Viper: What we are seeing are TOP DOLLAR deals. A typical deal will be based on a multiple of EBITDA (like net profit). The multiples we are seeing are in the 7x-10x range of an adjusted EBITDA which includes doctor compensation. The deals will pay 70% cash at close to the sellers and 30% will be rolled into equity in the buying company. These are partnership deals, so the doctors post close are shareholders and owners not employees. The deals can be very lucrative with earnouts, bonus programs and incentive plans.
Q: So, do doctors lose control of their offices and staff?
Viper: We do not allow that. Post close the doctors will remain in charge of their offices. The buyers do not change the name on the door, terminate staff or in anyway disrupt what is a successful business. They do come to the doctors with capital for expansion or acquisitions and administrative support to give the doctors more free time to use as they wish. The support is all done from a remote location which includes ordering supplies, human resources, marketing, and employee benefits. These are true partnerships with a common goal of growth.
Q: What can the Oral surgeons expect for compensation post close.
Viper: Typically, each doctor will be paid between 35-45% of their personal production. There also can be specific bonus plans for each doctor.
Q: What happens to my staff?
Viper: Remarkable things! Since the doctors remain in charge of their offices, they make all staffing decisions. Key managers will be given new contracts that will mirror their present contracts.
Q: Why contact Viper?
Viper: We have broken every record on deal value and sale price for our clients. It is so important to collaborate with experts. We started the oral surgery consolidation in 2020. Fast forward to 2022 we have completed more transactions than anyone and understand every aspect of the space. Experience is key, no question. We have dozens of qualified buyers and sellers waiting and know how to get the deals done. We are getting deals under LOI in less than 2 weeks and closing 70- days later.
ABOUT VIPER EQUITY PARTNERS
Viper Equity Partners is a leading sell side Investment Banking firm located in Palm Beach Florida that represents Dentists, Plastic Surgeons, Dermatologists and Ophthalmologists nations wide. For more information visit www.Viperequitypartners.com or call 305 988 5945.
FEATURED IMAGE CREDIT: Bruno Pereira from Pixabay.