The private credit market is beginning to show real signs of stress — and the implications for the dental profession could be significant. According to Fitch Ratings, U.S. private credit default rates climbed to a record 9.2% in 2025, with the majority of defaults occurring among companies generating $25 million or less in EBITDA. J.P. Morgan recently modeled that with a 10% default rate and only 20–30% recovery values, total returns for leveraged private credit portfolios can turn negative. Historically, severe stress scenarios look something like this: Scenario Approximate Impact 2–3% defaults Normal/private credit performs well 5–6% defaults Stress begins, weaker funds struggle 8–10% defaults Significant NAV pressure and restructurings 12–15% defaults Potential wipeout risk for heavily leveraged or poorly underwritten funds Some analysts and UBS stress scenarios have warned that a true recession or AI-driven earnin...
One of the most overlooked risks in a dental practice acquisition is deferred maintenance. It’s easy to focus on production, collections, EBITDA, and patient flow during diligence. But if the physical dental office , equipment, technology, and infrastructure have been underinvested in for years, those hidden costs can dramatically affect performance after closing. Deferred maintenance shows up in many ways: • Aging compressors and vacuum systems • Outdated electrical and plumbing infrastructure • Worn chairs and delivery units • Failing HVAC systems • Poor IT and network systems • Roof, flooring, cabinetry, and plumbing issues • Neglected sterilization and operatory workflows On paper, a practice may appear profitable. But if the buyer has to immediately spend hundreds of thousands of dollars post-close just to stabilize operations, that “great deal” can quickly become a major drag on cash flow and growth. Even more importantly, deferred maintenance impacts the patient and dental team...