How does competition from overseas dental labs affect buying a dental lab?

Dentists can choose where their cases go, and some labs abroad compete on price. How much that touches the lab you are looking at varies from one lab to the next. Rather than rely on what anyone says about the trade, test the specific lab with its own records and a few direct questions.

Ask where else the dentists send work

Ask the seller which clients also use other labs, local or abroad, and for which kinds of cases. Some dentists split their work by type, sending simple cases elsewhere and complex ones to the lab they trust. Ask how the seller knows. If the answer is a guess, treat it as one, and consider whether a reference call with a client is possible once the deal is further along.

Price lists, discounts and lost accounts

Ask for the price list over several years. Look for discounts that were given to keep an account, and ask whether they were temporary or permanent. Ask for a list of accounts that stopped sending work, with the reason for each. A pattern of price-related exits tells you something that a single total never will.

What keeps dentists with the lab

Where clients stay, there is usually a reason: quick turnaround, fewer remakes, a technician who understands a dentist’s preferences, or easy contact when a case goes wrong. Ask the seller to show these in records, such as delivery times and remake logs, rather than describe them. Then ask yourself whether they will survive a change of ownership. The BDC guide to due diligence sets out a way to organise these checks.