Kerr Corporation acquires Dux Dental and Vettec, Inc.
Looks like Danaher has acquired yet another dental company and has made a move into Animal Health with the acquisition of Vettec, Inc.
With the Dux restorative line and infection control line these products will be nice additions. The restorative products such as Zone Temp Cement will fit nicely into Kerr’s portfolio. The infection control products such as Bib-Eze , the disposable bib holder will be a nice addition to the Total Care division.
As far as the Vet side of things , we can only speculate that this will not be the last of Danaher’s acquisitions in Animal Health.
Read the entire story HERE
If you own a small or medium sized dental company or dental practice you probably have some emotional ties to it. Your father or a relative started the business or you personally have grown the business. You may be contemplating selling the business and reaping the rewards of all the years and possibly generations of hard work.
One thing to keep in mind is to try and keep your emotions in check as you get ready to sell and through the sale process.
1. Have realistic expectations about your selling price. Absolutely try and get top dollar for it. Remember that while brand and legacy do have value chances are it has more value to you than to a potential buyer. Present a solid business case as to why your family brand and legacy have value.
2. When it comes to negotiations remember that the business was built to eventually be sold. Sellers can and often do get cold feet during a closing as they second guess if they got the best deal and also what there life will be like after the sale. Make sure you are prepared for life after you sell. Maybe you are an employee, maybe it is a clean break, but whatever the case have a clear personal path prior to closing.
If you can take the emotion out of the sale the process will go much more quickly, smoothly and potentially it will turn out more lucratively for you!
Let us know if we can help,
The Connect the Dents Team
While there is no question that dental M & A activity is increasing “across the board”, there are differences in what the selling price (in terms of PPM — price per multiples) can be depending on the segment the dental company is a part of. In the June 6th Dental Fax Weekly published by The Anaheim Group (subscribe at www.dentalfax.com), the dental segments are currently selling at the highest PPM are software and publishing (approximately 3x on average) while labs are the lowest (0.7). Manufacturing is a solid 2.2x.
M & A Definition: “Trailing Twelve Months” (TTM)
TTM is used in the finance world as a measurement of a company’s financial health. Simply put, it is a calculation of the income for the twelve month period PRIOR to a company report (quarterly or interim). Why is it needed or used? Analysts sometimes want to determine this figure because a partial or interim report doesn’t represent a full year and depending on when during the year the report comes out, the data contained can depict unrepresentative (or “skewed”) numbers (i.e. higher sales at holiday times). To clarify a bit more, relevant to the M & A world, TTM is determined to show either the most recent 12 months of a company’s business or the last 12 months before an event like an acquisition. An example of a formula that is used to determine TTM is:
Most Recent Quarter(s) + Most Recent Year – The Corresponding Quarter(s) 12 Months BEFORE the Most Recent Quarter(s)