Tariffs and geopolitical tensions are dominating headlines and our discussions with private equity firms. According to these investors, the cost of volatility and global uncertainty are making investments harder to underwrite in trade-sensitive industries like manufacturing and logistics.
So where are investors turning instead?
Many are (re)exploring healthcare services—specifically, sectors like dental, which is back on the radar for all the reasons that have long made it an attractive sector:
- Non-cyclical, essential demand
- Localized operations (i.e. insulated from tariffs)
- Strong margins and clear scalability
- Room for consolidation in both general and specialty practices
Private Equity Activity
We’re beginning to see buyer activity tick back up. Firms that had paused acquisitions are coming back to the table, seeing it as a relatively lower-risk growth area amid uncertain macro conditions.
That said, we’re not expecting a return to the boom years of 2021–22 following COVID when the dental space saw intense competition from buyers, causing valuations to surge.
Today, buyers are more selective in their acquisition criteria. We expect competitive bidding for practices with A+ fundamentals, which include:
- Multiple locations
- Specialty services like ortho, endo, or oral surgery
- Strong clinical leadership with growth runway
What This Means for Sellers
If you’re a practice owner thinking about a sale or recapitalization, now is a great time to explore your options. You’re likely to find more active buyers than you would have 6–12 months ago, with a deal environment tilted more favorably toward sellers.
But success still depends on timing, preparation, and positioning. At Caber Hill Advisors, we help dental practice owners understand the market, connect with the right partners, and negotiate transactions that meet their goals.
