Highlights
Timothy Brown, CEO of ROI Corp and Jackie Joachim, Chief Operating Officer of ROI Corp give the Oasis Discussions audience an idea of the trends that are occurring in the dental marketplace as of late September 2017.
Key Trends
- Dental corporations are still interested in acquiring practices
- Strictly looking at multiples of EBITDA
- The investors are looking for return on investment
- A well-run practice with existing associates in place is attractive to corporations
- Currently 3-5% of all dental practices are owned by dental corporations and this will likely increase
- The dental market peaked approximately 9 months ago and has changed
- There are fewer offers to sellers that are beyond appraised value
- Buyers may not be making offers due to higher interest rates
- Well-entrenched associates may feel that the investment may not be worth it given they are making similar wages as an associate
- The decline in the real estate market has also “cooled” the dental marketplace
- The proposed upcoming tax changes will potentially impact practices
- This may affect income-sprinkling for current and prospective owners
- Debt-serviceability for new buyers may be adversely affected
Full Video (10.39″)