Many in the industry don’t see it. Even more are in denial about it. But it’s happening, non-the-less. Corporate Dentistry is under attack. Federal, state and local governing boards as well as law enforcement agencies are making bold moves to clean up what has been left to run amok for years. This “clean up” may be fatal. Which is fantastic for every person in America, because everyone sees the dentist at some point.
Though it may be slow and painful. Has Rick Workman finally come to gripes with that reality? I think this is a HUGE signal to all “corporate dental chains” out there. When one of the first, largest and most influential entities in the industry is ready to tuck it’s tail and run, you know it’s bad.
Heartland Dental Care, Inc. Sale
September 6, 2012
Heartland Dental Care Inc., one of the largest dental practice management companies in the United States, is exploring a sale that could fetch as much as $1.4 billion, according to two people familiar with the matter, Reuters wrote Thursday. The company, in which Chicago-based private equity firm CHS Capital Partners has a stake, has hired investment banks Jefferies and Moelis to find a buyer and has drawn interest mostly from other buyout firms, the people said.
(Reuters) – Heartland Dental Care Inc, one of the largest dental practice management companies in the United States, is exploring a sale that could fetch as much as $1.4 billion, according to two people familiar with the matter.
The company, in which Chicago-based private equity firm CHS Capital Partners has a stake, has hired investment banks Jefferies and Moelis to find a buyer and has drawn interest mostly from other buyout firms, the people said.
The sources asked not to be identified because the process is not public.
Heartland Dental has about $120 million in annual earnings before interest, tax, depreciation and amortization (EBITDA) and could be sold for 10 to 12 times EBITDA, they added.
The auction is early in the second round and final bids are expected about a month from now, according to the people. Jefferies has offered to provide financing for potential buyers, they added.
Representatives for Heartland Dental, CHS Capital, Jefferies and Moelis did not immediately respond to requests for comment.
Effingham, Illinois-based Heartland Dental manages more than 350 affiliated dental practices in 19 U.S. states, providing dentists with administrative services such as personnel staffing, purchasing, and financial, marketing and technology support, according to its website.
The company is owned and operated by founder and Chief Executive Rick Workman, a dentist. CHS Capital made a minority equity investment in 2008 for an undisclosed sum. (By Soyoung Kim)
[If the amount was “undisclosed”, then how does anyone know if it was a “minority” equity investment, huh? Just asking.]]
Related:
Heartland Dental To Pay $3M in settlements
Heartland Dental North Carolina Lawsuit
Dr. Gary L. Cameron Sanctions Over Heartland Dental Illegal Practice Ownership Program
