Specialized Dental Partners (SDP) is one of the most active buyers in the dental practice market, announcing multiple transactions per year. A portfolio company of Quad-C Management, SDP is a leading specialty dental service organization that provides comprehensive support services to endodontic specialists across the United States.
According to data captured in the LevinPro HC database, the dental industry is experiencing a slight increase in deal volume. In the first quarter of 2026, 62 dental transactions were publicly announced, a small increase from the 59 reported in both Q4:25 and Q1:25. However, there was a 6% drop between full year 2024 (267 deals) and full year 2025 (251 deals).
Since SDP changed its name from US Endo Partners in late 2023 to widen its scope beyond endodontics, SDP has expanded by more than 50 practices and more than 80 physicians.
In 2026, the company has already announced the acquisition of Pittsburgh Endodontics, a two-physician practice in Monroeville, Pennsylvania, as well as Post Falls Periodontics & Implant Dentistry, which is run by Dr. Joseph K. McCombs in Post Falls, Idaho.
The LevinPro HC team sat down with Scotte Hudsmith, CEO of SDP, to discuss the company’s acquisition strategy and current market conditions.
While SDP’s focus on endodontics, periodontics and oral surgery represents only a fraction of the broader dental market, its specialization allows for a more disciplined strategy. This means its approach to partnerships is significantly more selective than general dentistry, as it builds its base around endodontics.
A challenge that faces many concentrated dental groups is providing care in rural communities, which often lack the infrastructure to deliver even general dental care. Hudsmith noted that, as SDP has a footprint in most markets across the country, geography is not often a factor in their acquisition strategy.
“If we’re entering a new market, our anchor is typically an endodontic practice, and then we add perio or oral surgery over time,” said Hudsmith. He even highlighted SDP’s significant presence in the rural communities of West Texas, Montana and New Mexico, citing these locations as evidence of SDP’s ability to navigate challenging markets.
When discussing what has made SDP such a successful investor, Hudsmith credited the company’s focus on longevity. According to Hudsmith, SDP does not do transactions with physicians who are looking to retire immediately, noting that the average age of physicians SDP partners with is in the mid-40s.
Not only does this help maintain stability and longevity for the practice, but it is also less likely to disrupt the patients’ experience. To Hudsmith, SDP is a people company first and foremost and will always do what it can to improve the patient journey.
“We actually won’t do a transaction with someone if they’re not in it for at least a five-year window,” commented Hudsmith. “If all they’re interested in is money and getting out, we’re not the right fit.” He even added that SDP is known for walking away from a potential partnership if they felt the physician wasn’t interested in a long-term partnership.
To further illustrate SDP’s emphasis on the patient journey, Hudsmith highlighted AI as a recent tool that improves the patient (and the physician) experience because it provides a second opinion. He even noted that SDP is currently piloting several clinical and administrative AI tools.
“AI can provide the data and the physician can review it,” said Husmith. “So, it frees up a lot of time from that standpoint on the clinical side.”
Burnout among physicians is largely driven by the dual pressure of heavy administrative burdens and high patient demand. Hudsmith believes that by integrating AI tools, doctors can streamline these tasks to provide faster, more comprehensive patient care.
In addition to discussing SDP’s acquisition strategy, we also touched on current trends affecting dealmaking and the broader market. When speaking about the strength and stability of the dental industry, Hudsmith attributed it to past investors taking advantage of low-interest rates while not fully having a plan for the future.
“When interest rates were low, some thought that it was really easy to buy a bunch of assets and stick them together. I call them EBITDA stackers,” said Hudsmith, as to why previous years’ deal volume was higher. “They didn’t build a business or infrastructure for long-term scale or stability. As a result, a lot of those practices are struggling financially or have been taken over by lenders.”
The rise in quarter-over-quarter deal volume may signal a return to a more normal market. Hudsmith anticipates that as more practices face operational struggles, an influx of motivated sellers will continue to drive volume upward. However, he cautioned that while activity is increasing, valuations and multiples remain suppressed and are unlikely to return to their previous peaks.
“Because we know there’s multiple compression on the top end, we have been lowering our offers in the process,” he said.
Beyond lower valuations impacting the market, Hudsmith also addressed a broader context that may lead to buyer hesitation.
“There’s going to be some noise in the market because of oil prices and economic challenges,” he noted. “Hopefully that ends soon and we can get back to normal.”
But, Hudsmith left the conversation with a feeling of quiet optimism. He believes that COVID-19 forced those in the dental industry to learn how to operate successfully on thin margins. Because of this, he believes that current investors are stronger and better equipped to survive economic ebbs and flows. With all the tailwinds in the market, anticipate a strong year for dental deal volume.
