DeNovo Health Group Ltd, a new dental group, has successfully acquired its first cohort of dental practices with the support of Hazlewoods Corporate Finance team.
The group is embarking on a buy-and-build campaign, planning to acquire multiple practices each year and offering a new model to change the way UK dental practice owners sell their businesses.
Hazlewoods lead advisory team, led by Corporate Finance Partner, John Lucas, provided strategic advice to DeNovo’s co-founders, Mark Aichroth, Kristen Pope, and Derek Schnack, assisted in building a detailed financial model to demonstrate the dental platform’s potential, and aided in securing funding to finance acquisitions.
Hazlewoods specialist dental transaction support team, led by James Morter, provided acquisition advisory services and financial due diligence on six target dental practices, which have been successfully acquired.
Drawing on best practices from around the world, London-based DeNovo is offering a shared ownership scheme to dental practice owners. Upon selling their business, owners receive the full value of their practice, with the majority in cash and the rest in parent company shares.
Dentist Partners maintain clinical and operational autonomy but are supported by the larger group and are incentivised to continue growing their businesses. By leveraging DeNovo’s collective strength and through shareholding, Partner dentists can grow their individual businesses and benefit from the parent company’s success.
One of DeNovo’s co-founders and CEO Mark Aichroth said: “DeNovo Partners have multiple wealth creation opportunities, and, due to the unique model, they can begin realising them earlier in their careers than expected. Because of the continued incentive payments, DeNovo Partners need not fear missing the opportunity to maximise the value of their practice before selling. They can join now, leverage the support of the community and resources, and still be rewarded for growth. This makes DeNovo an ideal environment for dentists looking to take their practices to the next level, not for those who wish to retire imminently.
“Thank you to John, James and the wider Hazlewoods team for helping us obtain funding and make our initial acquisitions.”
John Lucas said: “It was great to work with the DeNovo team and help them build their platform from scratch. We will be offering ongoing support to ensure their continued success.
“This is a great opportunity for dental practice owners to experience the benefit of joining a group and yet remain autonomous – all while reaping the rewards of continued growth.”
Hazlewoods continues to support DeNovo by providing ongoing accounting and taxation services to the wider dental group.
If you are thinking about selling your business, buying a business, or need funding for growth, please contact John Lucas at john.lucas@hazlewoods.co.uk.
