Comvest Said to Be in Talks to Buy Dental Service Organization BAF Management

Comvest Partners is in discussions to acquire Beekman Group-backed dental service organization BAF Management Services LLC, according to industry sources.

Reorg reported in February that BAF was preparing to go to market, with William Blair & Co. LLC as its financial advisor. Sources estimated that BAF generates $20 million to $30 million of run-rate EBITDA. Some dental businesses have recently traded in the neighborhood of 11x to 13x EBITDA, one of the sources said.

Among the recent deals in the sector was Lindsay Goldberg’s purchase of a majority stake in Lightwave Dental in July 2023, marking an exit by Alpine Investors. Also last year, Cathay Capital acquired a majority stake in Parkview Dental Partners.

Monroe Capital LLC was the administrative agent and joint lead arranger on a senior credit facility that supported the Lightwave transaction, according to a news release issued by Monroe in August. The first lien facility, priced at SOFR+700 bps, will mature on June 30, 2029, according to Reorg’s BDC Database, which shows Lightwave as an investment of Monroe Capital Income Plus Corp. and Kayne Anderson Bdc Inc.

Live Oak Banking Co. and Barings provided a unitranche credit facility featuring a term loan, a revolver and a committed delayed-draw term loan to Parkiew. The first lien facility is priced at SOFR+830 bps and will mature on Oct. 1, 2029, according to the BDC Database. There is a second facility, also a first lien and due Oct. 1, 2029, with a spread of SOFR+650 bps that was disclosed in the Barings BDC’s most recent 10-Q for the period ended March 31. Barings also made an equity co-investment alongside Cathay.

Cary, N.C.-based BAF provides support services including marketing, accounting, human resources and IT to dental offices operating under the Riccobene Associates Family Dentistry name.

Beekman, a New York-based private equity firm, invested in BAF in a deal announced in March 2018.

The private equity unit of West Palm Beach, Fla.-based Comvest focuses on the healthcare services, infrastructure and field services, professional and managed services, and consumer sectors. It typically invests in companies with more than $7 million of EBITDA and between $50 million and $1 billion of revenue, according to its website.

Representatives for Beekman, BAF, Comvest and William Blair did not immediately respond to requests for comment.