Investing In Dental Practice Management: Key Issues And Notable Transactions

Investing in Dental Practice Management: Key Issues and Notable Transactions

The dental practice management ("DPM") model has become an increasingly popular investment vehicle with management companies and private equity firms. The DPM model provides an opportunity for a management company to form a joint venture or other business arrangement with one or more dental practices. The management company performs the administrative and management services for the dental practices, allowing the dentists to focus on patient care. In return, the management company receives a fee for its services and/or the opportunity to share in the revenue or profits of the practices it manages. Many private equity firms see dental practice management companies as a stable investment, which is evidenced by the number of DPM deals closed in recent months. The DPM structure provides certain economies of scale to the practice that were not otherwise achievable. While the DPM model grows in