Court Square Capital Partners recently acquired a majority stake in the founder-owned West Coast Dental. The investment firm is expected to use the cash to boost new clinic openings and invest in digital marketing. In addition, Dr. Pakravan will remain a major shareholder. What’s next for West Coast Dental? The company will continue to grow under the new leadership. Here’s what you need to know about the acquisition. Also, read on to learn about how the new owner will benefit the organization.
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Court Square Capital Partners acquired a majority stake in founder-owned West Coast Dental
A middle-market private equity firm, Court Square Capital Partners, has acquired a majority stake in California-based West Coast Dental. The dental company is a leading provider of high-quality dental care. The deal will help improve patient access to the dental practice. The deal also provides the company with a much-needed boost in scale. The new ownership team will remain as co-investors, along with the existing owners.
Founded in 1968, Court Square Capital Partners is a generalist private equity firm focused on middle-market companies. It partners with management teams to improve operating efficiency and accelerate revenue growth. The firm was previously known as Citigroup Venture Capital Equity Partners, but has since become independent. Today, it has over $1.6 billion under management. It invests in a variety of industries, including healthcare, consumer products, technology, and manufacturing.
In addition to NDC, Court Square Capital Partners also acquired Evans, which is a portfolio company of Calera Capital. The firm worked closely with Evans’ management team and with Calera Capital and a focused group of financial investors. The firm previously invested in the company and added on during its ownership. The deal closes on June 15.
Court Square plans to turbocharge new clinic openings
A private equity firm with a focus on middle-market companies is buying up West Coast Dental. The company has 40 multi-specialty dental offices in California and employs 130+ dentists. With this investment, Court Square plans to increase its access to care and improve the quality of dental care for all patients. While the financials of the deal have not been disclosed, sources say the deal is worth between $250 million and $1 billion.
The company’s acquisition of a majority stake in West Coast Dental is the latest example of a physician practice management play. The market is fragmented, but has a high rate of repeat customers and a growing aging population. Court Square intends to accelerate the pace of new clinic openings by investing in digital marketing and the practice’s M&A playbook. The deal was conducted by SVB Securities, a firm that works closely with founders to ensure that deals are done in a timely manner.
Court Square plans to invest in digital marketing
California dentists will have another platform to tap into. Court Square is currently evaluating dental companies. While it didn’t have a direct relationship with the executives at West Coast Dental, its CEO spent almost two decades with the company. The dental sector is a good fit for Court Square. Court Square has a history of backing founder-owned companies. It’s not clear how much the acquisition will add to its current digital marketing platform.
Dr. Pakravan will remain a major shareholder
Court Square has been looking for a new dental platform and is a long-time shareholder in Western Dental. The company’s CEO spent nearly two decades at Western Dental. Court Square prefers to invest in founder-owned companies. Dr. Pakravan, a founding shareholder of the company, will remain a major shareholder of the company. The deal is valued at $250 million.
As a leading provider of high-quality dental services in California, Court Square has invested in WCD. The firm has committed to expanding its support organization, and the new partnership will speed up plans to expand access to quality dental care. While the deal is a win-win for both parties, it may not be the right fit for the existing management team. In the interim, the two will continue to work together to develop the company’s future.
While the transaction benefited patients, Dr. Pakravan will continue to play an active role in the company. The acquisition of the dental practice enables Dr. Pakravan to remain a major shareholder. The Company plans to allocate the purchase price based on patient files, intangible assets, and dental equipment, and will retain the rights to use these assets for other practices. Dr. Pakravan will also remain a majority shareholder of west coast dental.
Dr. Cohen Sedgh will remain a major shareholder
Dr. Cohen Sedgh’s ownership of West Coast Dental will remain substantial. In addition to his equity ownership in Coast Dental, he is a partner in a joint Dentist Equity Model initiative. This initiative would see the sale of some Coast P.A. assets in exchange for accelerated payments of management fee receivables. Nonetheless, the deal could result in equity securities diluting Dr. Cohen Sedgh’s ownership percentage and senior privileges.
WCD is a multi-specialty dental practice with offices throughout California. Its offices include those branded as Magicland, and it employs 130 dentists. Approximately 425,000 patients visit WCD offices each year. It will celebrate its 30th anniversary in 2021. Since its founding in 1991, WCD has invested heavily in both its infrastructure and its employees. The company has big plans for growth and consolidation in the dental sector.
Despite the complexities, the Equity Model initiative has the potential to bring the Company significant liquidity. It will be difficult to implement in all markets. The Company’s future performance is uncertain, and Dr. Cohen Sedgh will remain a major shareholder of the West Coast Dental. The deal will help the Company to expand its network, and add more dental practices that are internally developed or strategically acquired.
Dr. Manavi will remain a major shareholder
WCD is the leading provider of dental care in California. The new owners will join the existing board of directors, which includes Dr. Manavi and Soleyman Cohen Sedgh. The company employs 130 dentists and provides 425,000 patient visits a year. The company has invested heavily in its people and infrastructure since its founding in 1991. It plans to continue this aggressive growth, consolidating the dental industry and adding more facilities.
Despite the recent acquisition of Coast Dental, the company will continue to grow its practice and expand into new markets. It will also continue to acquire strategically-located Dental Centers. In addition to acquiring existing dental practices, the company expects to add additional locations, including internally developed ones. Dr. Manavi will remain a major shareholder of west coast dental. He is committed to improving the quality of care at the practice.
Dr. Manavi will continue to serve as a major shareholder of West Coast Dental. He has also proposed that the Company issue equity securities to raise capital to fund its operations. This may dilute his ownership stake in the company and the management fee receivable. However, Dr. Manavi will retain senior privileges. While this acquisition is a good fit, the Company may be forced to raise additional capital to continue its growth.