dbg is an innovative provider of outsourced healthcare support services to the UK primary care market.

It provides services and products to its membership of over 10,000 dental practices, GP surgeries, pharmacies and hospitals with services that include CPD training, compliance audits, equipment maintenance and inspection and the supply of specialist materials.

With over 50% of UK dental practices and 25% of GPs as customers, and through its highly skilled team of professionals, the dbg is extremely well placed to support practitioners and healthcare professionals as they adapt to the legislative changes targeted at the sector.

INVESTMENT CASE

Synova provided the strategic advice and funding to dbg’s long-established management team to support their ambitions of acquiring the business from its founding shareholders. Our investment allowed the business to continue on its journey away from the dental medical products and sundries space in order to pursue its burgeoning high margin outsourcing and compliance services activities. In addition, Synova supported the recruitment of fresh talent to help support the incumbent management team.

KEY FACTS

  • 200%Earnings growth
  • 10kPractices supported
  • 5.8xCost multiple on exit
  • Sector:
    Healthcare
  • Investment date:
    March 2010
  • Exit date:
    April 2013

KANESH KHILOSIA
CEO – dbg
“We liked the Synova approach from the start. They provided strategic guidance and capital for acquisitions, but most importantly they worked closely with my team to secure new business and introduce potential customers. They delivered on everything that they committed to throughout the life of their investment.”

GROWTH STRATEGY

We identified, along with the management team, the opportunity that existed for a unique and trusted business with a membership model such as dbg to provide a suite of additional high margin outsourced services to not only its core customers (60% of UK dental practices), but also to other health sector verticals such as medical, veterinary and podiatry.

EXIT

Synova instituted a trade buyer engagment programme during our period of ownership; we successfully exited dbg to IDH Group following a targeted and highly competitive auction process during March 2013 returning 5.8x cost and 77% IRR.