[Retric]

There’s a PE cycle in several industries because economies of scales don’t help nearly as much as a skilled workforce. So PE companies can’t maintain customer service while maximizing profit and customers move to new small business which grows until owner wants out, and repeat.

I find it fascinating which industries are vulnerable and which aren’t. PE has been more successful with morticians because they can more effectively own an area and people only deal with so many funerals. Vets on the other hand seem to be easily taken over despite regular visits and skilled workers, presumably regulatory bodies play a major role? No really sure.

[hyeonwho4]

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.

[ethbr1]

Curious 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]

Mars is one of the biggest manufacturers of pet food in the world

[rqtwteye]

"then gradually raise prices"

It's not exactly gradually. I would call it "aggressively". At least for vets.