Caber Hill is pleased to announce that it represented Dr. Larry Scarborough in James River Orthodontics partnership with Southern Orthodontic Partners.

Based outside of Richmond, Virginia, James River Orthodontics is one of the most highly reviewed practices in the area. Dr. Scarborough has been recognized by Richmond Magazine as a “Top Orthodontist” for the last five years, and has earned recognition as an Invisalign “Top 1% Provider” in North America.

The deal closed on June 18, 2021. Additional terms of the transaction were not disclosed.

No one would claim that selling a business is a simple process. Yet, when it’s time to sell, many business owners try to do it themselves. Or they sell to a partner or a competitor or someone else that’s familiar to them without ever testing the market or learning what their business is truly worth. So how exactly does a seller find a proper valuation? The most sure-fire way: hiring an experienced advisor to run a structured auction process.

Caber Hill is pleased to announce that it advised a large, multi-office endodontic group in its sale to Endo1 Partners. While the seller remains confidential, we are permitted to disclose that the seller is the largest endodontic group practice in its state and one of the largest in the country.

Going forward, the shareholders of the undisclosed seller are retaining a significant equity stake in Endo1 Partners. Moreover, according to our research, we believe this was the largest add-on acquisition of an endodontic group ever completed.

The deal closed in early June of 2021. Additional terms of the transaction were not disclosed.

Caber Hill is pleased to announce that Managing Director Maria G. Melone advised in the acquisition of three dental practices in New England by an undisclosed buyer. Owned by Dr. Gene Kim in the state of Maine, the three practices were:

  • Forest Falls Dental, P.A.
  • Roosevelt Dental, P.A.
  • Androscoggin Dental Care

The deal closed on April 29, 2021.

“It was a real pleasure to help Dr. Gene Kim transition to the next phase of his career,” Maria said after the deal.

Maria steered the deal through several obstacles unique to 2021, like lost revenue from shutdowns, compliance from PPP loans, and other factors that just weren't on the table a few years ago. In this environment, guidance from experienced investment bankers like Maria and our team of talented advisors at Caber Hill has never been more critical.

It’s often a shock to most business owners when I tell them that paying the least amount of taxes possible might not always be in their best interest. And that shock is understandable. For many owners, they’ve spent years carefully managing their accounting practices to reduce their tax liability. But when it comes time to prepare their business for sale, those same years-old accounting practices might not be in their best interests. The relationship between tax strategy and the value of a business may not be intuitive, but is certainly worth exploring in more depth.

 

First, let’s discuss value. The vast majority of a business owner’s time should be focused on growing both your business and your personal income—and the two are usually directly related. Therefore, many owners find ways to reduce "on paper" business income by treating personal expenses as business expenses to lower tax bills. To this end, most business owners write off everything they possibly can. However, the final years before selling a business call for a change in strategy—because declaring as much income as possible can increase the price received in a sale. Let me explain.

 

The latter part of 2020 saw a pick up in M&A activity, as sales volume began to return to normal, pre-pandemic levels, following a pause of many planned sales in response to uncertainty posed by COVID-19 shutdowns. In the last two quarters, Caber Hill Advisors has been working with businesses across multiple industries as sellers are looking to take advantage of current market conditions. Below are highlights from a few featured deals:

Sell-Side:

Buy-Side:

Caber Hill Advisors is your partner for growth. We're committed to working with business owners so they can successfully fulfill their personal and professional legacies. We draw on our experience serving small and middle market companies in several specialty industries to help our clients identify and capitalize on the best opportunities available.​

If you’re interested in learning more, contact any one of our leading advisors to have a conversation about what’s important to you, your business, and your future.

Caber Hill Advisors very own Maria G. Melone was invited to speak on a panel to discuss the drivers and direction of consolidation in the dental industry at this year’s ADSO conference, a virtual event with a theme of “Boldy Evolving Dentistry.” A managing director on the firm’s healthcare team, Maria joined Caber Hill in early 2021, and was quick to share her expertise and viewpoint with over 100 attendees on March 24 (which was also her birthday!). Joining Maria on the panel were two other industry pros in M&A: Katie Douglas, a shareholder at Fredrikson & Byron; and Greg Wappett, a director of corporate development at 42 North Dental. Below, we summed up a few takeaways from their conversation.

1. More Deals Involve More Doctor Participation

In many recent deal structures, there’s been a focus to put in place programs that allow for doctor representation in the ownership of the business. In past years, most consolidation deals left owner dentists with no equity, or with a small minority position. But now, there’s more recognition to the importance of having the dentist fully aligned with the larger organization. Some of these programs include joint-venture opportunities and ownership models that go deeper to the doctor base.

2. Sellers Shouldn’t Expect an All-Cash Deal

As recently as February of 2020, many sellers expected to receive an all-cash deal for their sale. But with the challenges and uncertainty the pandemic has presented, there are few all-cash deals to be had. Now, buyers deploy other tools that might still give practices the valuations they held in 2019, but with some safeguards to the risk and uncertainty still present in the market. Some of these tools include deferred payouts, equity packages, and earnouts. 

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