Q2 2023 Dental Services Update
Q2 2023 Dental Services Update
Q2 2023 has been an active quarter in the dental services sector, with the later months highlighting a surge in middle market DSO transaction volume. The uncertainty of credit markets and economic conditions in recent quarters resulted in fewer dental opportunities in market, but in June-2023, four notable dental transactions were closed. Additionally, Provident’s DSO industry team expects many additional mid-sized DSOs to approach the market and close transactions in the following 3-6 months. Q2 market activity also reinforced investor excitement across various strategies and verticals, including acquisitions of investor-owned DSOs, private equity recapitalizations of founder-owned DSOs, majority and minority investments into specialty dental, partnerships with branded consumer clinics, and clinic carveouts between DSOs. Investors have pointed to stability in the credit market and dental’s recession resiliency as key drivers of the broad interest across the sector.
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