August 27, 2014 — Newly formed dental service organization (DSO) Modern Dental Services (MDS) of Dallas has raised $2.5 million in private equity to purchase dental practices from older practitioners and use them as job opportunities for new dentists.
Backed by 21 investors, MDS founders Matt Hale and David Lohmann want to “bridge the generational gap” in the dental industry, according to a bizjournals.com story.
Older dentists have told them that they don’t have good transition options and are faced with either selling their practices and giving up working or keeping their practices and working full time, Hale said. MDS will seek to buy practices from older practitioners and provide an employment option for younger dentists who don’t want to own a practice, according to the story.
MDS will also manage the administrative side of running practices. Many of the company’s investors have dental or general medical experience or are familiar with the fields through other investments, Lohmann said.
MDS has not yet purchased any practices or revealed how many it wants to acquire. The company is focusing on finding businesses in North Texas and could expand to other parts of the state in the future.