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1743: The Current Consolidation Appetite

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On today’s episode of the Dentalpreneur Podcast, recorded live at the Dental Success Summit, Dr. Mark Costes interviews Brian A. Colao, a leading authority in the DSO (Dental Support Organization) space. Brian has transformed Dykema’s DSO group into a renowned leader in middle-market DSO buy-side and sell-side transactions.

In this insightful interview, Dr. Costes explores the current landscape of dental consolidation and the impact of interest rates and the economic climate on the appetite for consolidation. Brian shares his expertise, highlighting that consolidation in the DSO space continues to be explosive due to low transaction risks, availability of bank loans, and investments from private equity funds.

The conversation further delves into the dynamics of the private equity world, where the need to deploy capital drives interest in dental assets. Brian discusses the shift in focus from buying more EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) to achieving same-store growth as market restrictions increase.

Dr. Costes also explores the trend of younger doctors selling to private equity earlier in their careers compared to mid to late career dentists. Brian confirms this pattern, explaining how many dentists fresh out of dental school are bypassing private practice and directly entering the DSO realm.

Don’t miss this engaging interview that provides valuable insights into the DSO industry and the trends shaping it. Tune in to the full episode and gain expert knowledge from Brian Colao’s extensive experience.