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The model of PE in dentistry / veterinary clinics is to buy out all the private clinics in a region, then gradually raise prices. Small businesses would pop up,
by hyeonwho4 2y ago
The model of PE in dentistry / veterinary clinics is to buy out all the private clinics in a region, then gradually raise prices. Small businesses would pop up, but the training horizon for new dentists / vets is quite long.
It isn't really about economies of scale so much as using local monopolies to set prices. They have a good moat because regulatory bodies have not regulated monopolies for 30 years, and professional organizations limit entry to each field.
- rqtwteye 2y ago"then gradually raise prices" It's not exactly gradually. I would call it "aggressively". At least for vets.
- ethbr1 2y agoCurious discovery on my part that VCA Animal Hospitals is now owned by Mars Inc (as in, chocolate bars), technically not PE as it's a private family-owned company.
- bald 2y agoMars is one of the biggest manufacturers of pet food in the world