GDPUK Opinion - Chris Potts - The Corporate Dentistry Scene 2008
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In 1997 you would not have heard of Boots Dentalcare, Ora Dental (our 2000th member, Julian Perry, was heavily involved with this particular one) not even Specsavers or the Health Clinic – all these have come and gone in the last ten years. Boots business was acquired by Matland Ltd (owned by Optical Express who also acquired the Health Clinic) in 2005. Ora (with its 10 practices) was bought by Oasis in 2002. In 2003 Oasis then acquired Dencare Management and another 36 practices.
Specsavers very quickly called it a day when they realised their preferred business model of franchisees was not workable under the then present legislation. (However it would be now). Following a management buy out of Specsavers Dental, CDC Ltd. was formed, a small corporate in the South West, which earlier this year was sold to ADP.
Until recently though the larger corporates did not look that attractive. For many years the question has been asked “How do you make yourself a small fortune out of corporate dentistry?” – the answer was simple - “Start with a large fortune”!. High set up and running costs for high street locations combined with an additional management layer ate away at the bottom line. The economy of scale that so many talked about was not all that evident. The high costs of associates meant a major part of revenue was lost immediately. I am sure all have noticed that things though have been changing.
It is well documented that the days of the 50% associate are numbered. With 40% and even less becoming more the norm, this additional 10% drops straight to the bottom line making the dentistry business a lot more attractive.
Now you have Legal and General Venture investing over £100m (allegedly) in IDH in 2006 and now looking to sell their share valuing the 190 practices at £300m, Hutton Collins acquiring 40% of James Hull and Associates, ADP is now supported by the Icelandic Kaupthing Bank and finally, with lots of messages regarding this on GDP UK, Duke Street Capital have completed their purchase of Oasis – with over 90% of the share ownership accepting their increased offer they compulsorily acquired the remaining shares and finally de-registered the company from AIM taking it private again.
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