Featured Business: A Growing Dental Practice

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Featured Business: Commercial Roofing

This week's spotlight in Power Play highlights a well-established dental practice that has thrived for 17 years. Known for its high-quality services and specialized dental care, the practice operates across two locations, serving a loyal patient base. With state-of-the-art equipment and a team of over 50 dedicated professionals, it provides comprehensive dental services, including sedation and hospital dentistry, setting it apart from competitors.

TL;DR

• Revenue Growth: Expected to reach $7.5 million by 2025 from $5.8 million in 2023.

• Strong Profit Margins: EBITDA margin projected to rise from 24.3% in 2022 to 29.4% by 2025.

• Comprehensive Services: Offering general, restorative, hospital, and sedation dentistry.

• SWOT Analysis:

  • Strengths: Established loyal patient base, Medicaid/Medicare-focused model.

  • Weaknesses: Staffing challenges in rural areas.

  • Opportunities: Geographic and service line expansion, tele-dentistry.

  • Threats: Regulatory and insurance changes.

• Sale Considerations: The practice offers a strategic growth opportunity for investors, valued through a competitive bidding process.

Financials at a Glance

• 2023 Revenue: $5.8 million (projected to grow to $7.5 million by 2025).

  EBITDA: $1.3 million in 2022, with expected growth to $2.2 million by 2025.

  Profit Margins: Strong upward trend, with an anticipated EBITDA margin of 29.4% by 2025, reflecting excellent cost control and efficiency.

Operational Insights

• Business Model: The practice benefits from a Medicaid/Medicare-focused model, which ensures stable, recurring revenue. The wide range of services, including hospital and sedation dentistry, gives it a competitive edge.

• Team: The team of over 50 professionals ensures that patients receive high-quality care across two locations. The leadership of an experienced management team has been pivotal in maintaining operational efficiency and service quality.

SWOT Analysis

Strengths: This practice’s low competition in rural areas and a robust Medicaid model create a unique and sustainable business.

Weaknesses: Attracting and retaining skilled staff in underserved regions poses a challenge.

Opportunities: Geographic expansion into other underserved areas presents a growth opportunity, along with service line expansion into pediatric and cosmetic dentistry.

Threats: Changes in insurance coverage or regulations could impact patient affordability and practice revenue.

Future Prospects and Strategy

• With strong financial performance and a proven model, the practice is well-positioned for future growth. Geographic expansion into new regions and service line enhancement will drive additional revenue streams. Tele-dentistry also presents a promising avenue for reaching remote patients. Investors can capitalize on these opportunities while benefiting from the practice’s established Medicaid model.

Power Play:

This week’s Power Play shines the spotlight on a thriving dental practice with a strong patient base and a Medicaid-centric business model. By leveraging its established reputation and strategic service offerings, the practice has demonstrated consistent revenue and EBITDA growth, making it an attractive opportunity for investors. The owner’s willingness to retain a minority stake and lead future growth adds to its appeal for private equity or strategic partnerships.

This is a good fit for you if…

1. You value predictable revenue streams: The practice’s Medicaid-focused model ensures consistent income and high patient retention.

2. You’re interested in service expansion: Opportunities to add new services like cosmetic and pediatric dentistry, as well as tele-dentistry.

3. You appreciate operational efficiency: A strong management team and streamlined operations contribute to the practice’s growing profit margins.

4. You want to invest in underserved markets: The practice is ideally positioned for growth in rural and underserved areas, where demand for high-quality dental services is high.

5. You seek low competition: Operating in rural markets, the practice faces limited competition, providing significant market advantages.

This opportunity allows you to acquire a high-performing dental practice with room for geographic and service line expansion, a stable patient base, and robust financials.

Interested in this deal?

Contact [email protected] to learn more!