Five Takeaways from Farragut’s Dental Webinar

On March 14th, Farragut hosted a webinar on the outlook for DSOs and Specialty Dental. We were
pleased to feature Geoff Ligibel, President & CEO of 42 North Dental; Heidi Arndt, Founder of
Evolve Dental Advisors; Andrew Hewlett, Managing Director at B. Riley Financial; and Rita
Ratner, the head of Farragut’s Billing, Coding, and Compliance division. This note highlights
five key takeaways from our discussion. The webinar replay can be found here (Passcode:
v^%2#8r8).

1. Platform deal volume in dental has slowed down, while add-ons and tuck-ins remain robust; more
   activity is expected in the second half of 2023.
2. Labor supply and other operational challenges remain a hurdle, but there are still opportunities for
   value creation in dental/DSO platforms.
3. Reducing staff turnover rates can mitigate billing and coding risks.
4. Dental reimbursement is stable to positive, and DSOs can leverage size and scale to negotiate rate
   increases.
5. PE’s role in the DSO and specialty dental space will increase, as there is plenty of runway and
   opportunity for consolidation.