Dental Services Organization Expansion

Private Equity Firm

Situation

The LoBue Group was engaged to develop a growth platform for a 13 Clinic Dental Health Care Chain aimed at being the foundation for a clinic “roll-up” to 200 facilities.

Recommendations
Results

Developed a pre-acquisition “Play-Book” to focus the acquisition strategy on candidates that meet prescribed Revenue, Line of Business, Geographic Location and Acquisition Cost parameters.

Delivered a post-acquisition “Play Book” that detailed post closing activities to bring new facilities into current network, with consistent customer service, process, employee training, technology, line of business refinements and management and reporting criteria.

Evaluated existing systems and developed a “Technology Roadmap” for taking the business to 200 clinics.  Assisted in vendor review and selection.  New accounting, contact center, human resources and business management platforms were selected.  Innovations for future technology considerations were specified including mobile applications for appointments, and billing/payments.

Developed a line of business and “public vs private clinic” evaluation tool which supported the strategy to de-emphasize “Public Clinic” acquisitions.

Delivered a volume, type of service and clinic utilization rates model which guided the same store sales objectives and focused on future Enterprise Value.

Laid out an enterprise management structure evolution model to take the firm from 13 to 200 clinics. This included Clinic supervisory and management staffing, district and regional management, change management, technology management, human resources and training management, and doctor and clinician management, recruitment and training.

The enterprise doubled the number of clinics, 13 to 26, within 90 days of the 6-month engagements completion.  The Pre-acquisition and post-acquisition “Play books” were utilized and proven in the later transactions.

The modeled 200 clinic chain shows a +/- $20,000,000.00  operating expense reduction from the 13 clinic baseline, aligned to the exit strategy expected to result in an a successful IPO or acquisition by a competitor chain.