Why Does Private Equity "Love Dental?"
The biggest challenge previously facing private equity investors for several years running has been finding attractive investment opportunities. Amid high prices and stiff competition, overall deal count has dropped 19% since 2014, the high-water mark for deal activity in the current economic cycle.
Yet one sector, retail healthcare (including Dental Service Organizations (DSOs), has been conspicuous in its growth. From 2012 to 2017, the number of deals involving retail health companies—those that operate freestanding health-related outlets like dental clinics or urgent care facilities—has soared, increasing at a compound annual rate (CAGR) of 34% in the North American market.