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Partnering with Advisors to Acquire Dental Service Organizations in Private Equity

Nurturing long-term partnerships with advisors before, during and after closing is often key to successful platform investments. We drew on this strategy when one of our clients approached us about exploring a new market: multisite dental services organizations in private equity. The new opportunity was adjacent to their prior experience with multisite health care platforms.

Finding Perfect-fit Advisors for a Platform Investment

To fully understand our client’s thesis, Apex Leaders initially hosted a comprehensive intake call to establish next steps. Our client requested an in-depth advisor relationship to further develop their thesis, proactively approach potential sellers and propel acquisition success after closing.  

Our clients identified an overarching goal to effectively scale their private equity DSOs. To accomplish this, Apex Leaders recognized the need to connect with former owner/operators or executives who previously oversaw similar expansion strategies or roll-up acquisitions. 

Apex Leaders researchers were determined to find expertise to match our clients’ needs. We sought executives at national and multi-regional companies, along with DSO owner/operators whose organizations were sold to private equity or strategic groups. 

After rigorous recruiting, research and personal interviews, we introduced: 

  • Former Founding Member and CEO, Elite Dental Partners 
  • Former COO at North American Dental Group and VP of Revenue Cycle Operations, DentalOne Partners, Inc. 

Insight from these advisors empowered our client to further hone their investment angle. They now wanted to speak with executives who previously scaled a DSO from 20 to 50+ sites through acquisition and de novo growth. 

Narrowing the Focus for Growth Strategy

Eager to meet this new criterion, Apex Leaders vigorously searched for new advisors to provide relevant knowledge for our client. 

This round of custom recruiting resulted in several introductions, including: 

  • Former VP of Development, American Dental Partners 
  • Former VP of Operations, West Coast Dental Services | Area Vice President, InterDent Service Corporation 
  • Former Vice President of Strategy and Platform Development, Pacific Dental Services 
  • Former CMO, Aspen Dental 

These connections transformed into long-term relationships, ultimately propelling forward our client’s strategy. The advisors helped our client get a target company under LOI within several months.

In-depth Due Diligence Lands the Deal for New Dental Investors

Before finalizing any deals, our client wanted additional due diligence to explore how the COVID-19 pandemic could affect the new industry. This included any financial fallout, operational disruptions or state-specific shutdowns, among other potential challenges. 

Apex Leaders introduced several new SMEs, including: 

  • Current Executive Director, Delta Dental of Indiana 
  • Current Board Member, Indiana State Board of Dental Examiners 
  • Former CFO, Elite Dental Partners 
  • Former CFO, DentalOne Partners 
  • Current Deputy Director, State of Indiana 

This final step gave our client the confidence needed to proceed with their target acquisition. After conversations, they determined the dental industry was an essential service insulated from many of the pandemic’s major effects. Our client successfully acquired the desired company. 

Hone Your Thesis and Discover Investment Opportunities

Lean on precise-fit partners from Apex Leaders to help you explore new markets and further growth strategies.