dentalcorp (DNTL) ran over 30% on its announced $2.2B take-private transaction led by private equity group GTCR. At $11 per share, the deal prices DNTL at over 10x NTM EBITDA - well in excess of its last two years of trading…

… but materially lower than its $14 IPO price in 2021 and secondary offering at $16.30 the following year.

It’s not all that surprising to see Canada’s largest dental network go here, given recent management commentary…

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What hasn’t worked out is valuation, but that’s frankly not something that we can control… The private market obviously has a lot more experience and a lot more tenure with businesses like ours.

Graham Rosenburg (CEO) - 2025 Stifel Conference

… and its shift from aggressive M&A fueled growth…

… to leverage reduction.

In private hands, DNTL will trim fat to capture the benefits of scale public markets helped build - but it may not be the last time we see these assets. Returns look skinny in the pure-play dental roll-up model…

… but they could be improved as part of a broader health platform. Given GTCR took a minority stake in Telus Health recently, it could try to facilitate a deal ahead of an IPO. Unlikely, but possible.

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