Stephen M. Monroe, Partner
Sanford B. Steever, Editor
Phone: 800-248-1668
Fax: 203-846-8300
Dental Practice Acquisition Market Soars According to Irving Levin Associates, Inc.
(October 5, 1998 – New Canaan, Connecticut)
Irving Levin Associates, Inc. has just released the preliminary results of a new report, The Dental Practice Acquisition Report, First Edition. Driven by the initial public stock offerings (IPOs) of 11 newly formed dental practice management (DPM) companies in the past two years, the acquisition market for dental practices has soared, according to statistics compiled in The Report.
In the 12-month period from July 1, 1997 to June 30, 1998, there were a record 108 transactions involving 367 dental practices and 844 dentists. This compares to 179 practices and 627 dentists sold in the prior 12-month period ending June 30, 1997. “Although there were a few publicly traded DPMs prior to 1997, the capital raised in 1997 and into 1998 fueled the explosive acquisition market for dental practices,” according to Stephen M. Monroe, a partner at Irving Levin Associates. “Without the equity markets, a lot of these transaction would not have been completed.”
Acquisition of Dental Practices, 1995-98
According to The Report, the pricing varied by type of dental practice. “In general, orthodontic practices sold for about twice the price per dentist as did general dental practices,” said Sanford Steever, Editor of The Report. “The total stock market capitalization of the DPM industry is about $1.6 billion, and just three orthodontic companies comprise more than 50% of that.”
Although acquisitions are scattered across the country, three states—Florida, Texas and California—dominated the activity with about 40% of the transactions during the 12-month period ended June 30, 1998. The transactions, however, are relatively small, as the top 10 deals in the most recent 12-month period ranged in price from $9.5 million up to $52.9 million.
The Dental Practice Acquisition Report, First Edition, with approximately 100 pages, provides summary statistical information on the dental practice acquisition market as well as details on more than 150 specific transactions during the three-year period ended June 30, 1998. Irving Levin Associates, Inc. is the premier research and publishing firm tracking merger and acquisition activity in the health care and seniors housing markets. To purchase The Dental Practice Acquisition Report, First Edition, at a cost of $395, please call (800) 248-1668.
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