When Attorney Scot Crow started out he never imagined that fifteen years later he would become an expert on the design and structuring for the corporate practice of dentistry. Scot, a Member in Dickinson Wright’s Columbus office, serves as general corporate and acquisition counsel for companies in the dental, healthcare, restaurant, assisted living, precious metal, entertainment, technology, investment and legal industries.
He began his career in the estate planning sector before becoming in-house counsel for a private investment group called Wealthstone in Columbus handling corporate compliance, real estate syndications and wealth transfer planning. When he moved to Roetzel & Andress, he was asked to focus strictly on M&A and his practice shifted towards acquisitions, divestures, private equity transactions and hedge fund formation and structuring (smaller private offerings and club deals).
Since joining Dickinson Wright earlier this year, Scot continues to focus on the formation and structuring of hedge funds, private equity investments (on the Company side) and general mergers & acquisitions. Scot says that the dental industry is going under significant changes with private equity groups growing industry in this market sector. The dental industry is 90% fragmented in the market right now with a lot of sole practitioners looking to retire. Combined with other factors, the industry is going to experience a large amount of roll-ups very similar to what occurred in the medical industry.
“Private equity is investing in the dental industry because of numbers,” says Scot. “With the right private equity partner, a highly fragmented market and lots of consolidation, you get the recipe for success.”
What makes the dental industry so interesting, says Scot, is that regulations vary from state to state so there are some limitations when reorganizing a dental practice into a corporate practice. Typically, dental practices are made up of two parts: the delivery of service and the management of service. Private equity groups want to invest in the corporate or management side of these practices.
“I was very fortunate to find a client that had an aggressive view towards this market. Together, he and I looked at a lot of different models for structuring what is commonly called a DSO/MSO model” says Scot. “We took the good of all the models and dropped the bad to create what we believe to be the premier model in this market. When we took the Company to market we were hoping to achieve a market at a value of $50 million, due to the scalability of the model and the management team my client had in place, that company ended up with a $138 million valuation.”
Scot is listed in Best Lawyers in America for Tax Law in 2013 and 2014 and was selected by Ohio Super Lawyers as a “Rising Star” in 2012. He continues to stay abreast of the changes in his fields so he can provide the most valuable information and counsel to his clients.