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The #2 Largest Recapitalization of 2022

Chip Fichtner
on Aug 9, 2022 12:08:20 PM


The #2 Largest Recapitalization of 2022

One of the largest IDSOs in the country announced their recapitalization last quarter. It has yet to close due to the U.S. regulatory review of their new investor; to our knowledge the first entry of a Sovereign Wealth Fund into the U.S. IDSO consolidation frenzy. 

While this transaction has not closed yet due to regulatory review, it is an interesting story. A very large PE firm backed this then 23-year-old IDSO granddaddy in 2015. Their initial target was an exit in 2020. The IDSO hired an Investment Banker in 2019 and were in the recap “process” in early 2020. You may recall a little bump in the road called COVID 19 which put the brakes on their exit.

Or some would say a slam into a wall as this IDSO made ZERO acquisitions between a practice LPS partnered with them in Dec 2019 and until finally some minor acquisitions starting in the spring of 2021. It was not about growth at that point, it was about survival!

 The happy ending to this story is that this Top 5 IDSO was able to attract as their new majority investor, the Sovereign Wealth Fund (SWF) of a very wealthy, energy rich country. This is the first known entry of this type of capital to the U.S. dental practice consolidation frenzy. Good news for ALL!

After 30+ years (360+ months) of effort, this IDSO achieved a value of just under $2.0 billion. Which leads us to the next story about the IDSO which went from an idea (courtesy of LPS) to an over $2.0 billion value in less than 36 months.5










Topics: Invisible DSO's, Post By Topic Dental Practice Transitions (16) Inv, Transaction Results, Young Doctors

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