Ladd Dental Group

Federal prosecutors and the SEC are investigating whether Mark Walter-controlled insurers properly disclosed billions of dollars of investments connected to other Walter-controlled businesses. One insurer reportedly reclassified roughly $16 billion of investments as affiliated , representing about 37% of its invested assets. Why this matters to DSOs 1. The cost of capital for dental acquisitions could rise A huge amount of DSO growth has ultimately been fueled by institutional capital—private equity, private credit, banks, family offices and other alternative lenders. If regulators become more skeptical of private-credit structures, affiliated transactions and leverage , lenders may become more conservative. That could mean: Higher interest rates on DSO acquisition debt Lower leverage multiples More equity required from DSO sponsors More scrutiny of EBITDA adjustments Tougher underwriting of individual dental practices Longer acquisition processes This could be par...