Regionally-focused dental support organization (“DSO”) formed to acquire and develop pediatric and orthodontic dental practices.
Lower middle market private equity firm focused on investing in high-growth companies across a range of industries that include specialty manufacturing, consumer, healthcare and business services.
An executive management team with extensive dental management experience was interested in building a regional pediatric DSO platform through both acquisition and de novo development.
The Company’s strategy was to acquire under-managed practices in the Midsouth and Midwest and employ management’s proven techniques to improve clinical and operating results and to centralize all administrative tasks that could potentially take time away from patient care and reduce productivity.
Management had identified and signed letters of intent (“LOIs”) with four pediatric dental practices that shared their philosophy and needed capital to purchase these and other transactions in their development pipeline.
Management and BCA determined that the Company needed as much as $50 million in equity to fund its consolidation plan. The Company hired BCA to design and execute a process that would raise the required equity before the exclusivity period in the LOIs expired.
BCA prepared marketing materials and management presentations that clearly articulated management’s proven track record, unique clinical and operating strategy, differentiated specialty dental and geographic focus, and the opportunity to build one of the leading pediatric DSOs. These materials also highlighted specific areas for improvement within each practice under LOI and the related financial benefits.
BCA advised the Company to target healthcare services-focused private equity funds that had significant “buy and build” experience. The most interested firms were invited to attend management presentations before submitting LOIs.
Seven private equity firms attended management meetings, of which five submitted highly attractive LOIs.
After evaluating these alternatives and negotiating LOIs, management selected Huron Capital Partners. The deal was closed and funded in just under seven months.
The highly competitive process allowed management to own and earn significant equity in the Company and secure a great partner to provide the resources and capital to grow rapidly.
“Brentwood Capital Advisors played a critical role in this process. They helped us communicate the Company’s unique position in the under-served pediatric dental market; navigate the buyer universe; and negotiate the best terms for our management team. We are pleased with the result and greatly value our relationship with the Brentwood team."
CEO, Spring & Sprout