My mantra for 2025 is to say more with fewer words. Wish me luck! See how I do on our first 2025 Webinar, January 16th: Recap of 2024 and Forecast for 2025, or email me for a copy.
- Q4 2024: $3.8 billion IDSO third recapitalization in seven years, up from $330 million in 2017, attracts more capital to practice consolidation. Dozens of happy LPS clients!
- If buy low, sell high and diversify is good investment advice, it is time to monetize… practice values are not low and are probably not going much higher.
- LPS signed clients in 29 states and DC in 2024. All dentists! Unlike the little advisors, we only represent larger dental practices. No doctor-to-doctor sales, No Medspa, Ophthalmology, Vet, etc. Just dental. We signed over $700 million in new client value. It pays to specialize.
- 2024 practice values achieved from 6.75x to 11.25x EBITDA and values at up to 375% of collections.
- Partnership values ranged from $2.75 million to $62 million for a single office GP!
- Doctors with a passion for dentistry, a personality and a plan for growth achieved the highest values, it is not just about the numbers. (Multiple GPs at over 9x EBITDA due to their personality in 2024).
- Over a dozen well capitalized, new IDSOs formed in 2024, quietly paying high values for the right practices. LPS clients became the platform practices for two of these.
- About $8.0 billion invested in IDSOs in 2024, but very selective vs. 2022/2023.
- Closed LPS clients in 2024 ranging in age from 37 to 73.
- Practice growth rate is critical for value. Shrinking practices need to wait.
- Adoption of AI in IDSOs and DSOs is shockingly fast. It is a game changer.
- With the sale of Patterson to PE, the supply vendor battles will increase. Good for dentists.
- Ortho case starts down 8% in 2022, down 6% in 2023 and down another 5% in 2024 makes growing orthos unique and valuable.
- Of the 250 OMS residency graduates in 2024, almost 150 went to IDSOs and DSOs. OMS is fastest consolidating of all practice types due to recruiting challenges for the 5000 independent OMS practices.
- Pedo, pedo/ortho and Dental Trifecta IDSOs still highest payers.
And finally, some observations on macro conditions:
- FartCoin hit $1.0 billion market cap (yes, it is a thing).
- Duct taped banana art sold for $6.2 million.
- Dorothy’s Ruby Slippers fetched $32 million at auction.
- 2024: S&P 500 Up 24%, Gold Up 27%, Dental Practice Values UP 5%.
- Interest rates down? Short term, yes, long term NO! The 10 Year U.S. Treasury Yields UP 100bps since September! 30-year mortgage rates about 7% today.
- U.S. Federal Deficit in first 60 days of Fiscal 2025: $624 Billion vs. “only” $1.83 Trillion for all of FY 2024.
- Sure reminds me of March 2000… Sometimes it pays to be old… If you can remember!
- The term “take some chips off the table” seems relevant today.
Have a wonderful, prosperous and growing 2025!
Latest posts by Chip Fichtner (see all)
- Quick Thoughts on 2024 Results and 2025 Practice Values - January 9, 2025
- Practice Partnership Podcast Ep 14: The Surprising Drivers of High-Value Practices - December 11, 2024
- Death, Taxes, & Dental Practices: The power of diversification - December 5, 2024