There have been a number of DSOs that have earned substantial financial investments in recent months, including Gen4 Dental Partners, Allied OMS and The Smilist.
The three DSOs received more than $100 million in funding, with Allied OMS securing a $116 million credit facility, The Smilist closing on a $285 million debt facility, and Gen4 Dental Partners receiving a $315 million credit facility.
Great Neck, N.Y.-based The Smilist is focused on both organic and inorganic growth, using the investment for facility expansions as well as adding new services, dentists and specialists.
"The majority of the money will help us through our inorganic growth. We expect that this year, we will be making acquisitions large and small and we will grow by 50%," CEO Andrew Mintz told Becker's.
The company, which closed on the debt facility in April, recently put the funding to use by making its first venture into Maryland with the addition of a 23-practice group.
When Southlake, Texas-based Allied OMS closed on its credit facility in May, it marked the company's first round of outside financing.
On top of recruiting more dentists and constructing de novo offices, the DSO put the funds to use almost immediately to add additional services to its platform.
"One of the things this allowed us to do immediately was to further integrate our platform," Allied OMS Founder and CEO Daniel Hosler said to Becker's. "In Q1, one of our big initiatives was doing HR integration so that all of our employees could have the same health, vision and dental benefits. Now that that's done, this allows us to invest further into the business."
Tempe, Ariz.-based Gen4 Dental Partners in June secured one of the largest investments in the DSO space so far this year.
The company, like The Smilist, plans to add partners and generate momentum for expansion.
"This refinancing will effectively allow us to continue our inorganic growth and to partner with the exceptional dentists we have in our pipeline," Gen4 CEO Lamonte Jensen told Becker's.
Even though the companies are in different business stages, areas of the country, network size and receiving different funding amounts, all three CEOs are emphasizing the importance of utilizing their investments to continue growing and building momentum.