The healthcare roll-up risk affects two portfolio companies: PetVet (critical) and 123Dentist (early warning). [Healthcare Roll-Up Playbook]

The common failure mode: both companies acquired locations faster than they could build the talent pipeline to staff them. Location count went up, but revenue per location went down.

	PetVet	123Dentist
Locations	320 to 380 (+19%)	320 to 425 (+33%)
Rev/Location	$7.5M to $5.5M	$1.9M to $2.0M
Margin	24% to 20%	22% to 22% (flat)
Utilization	Turnover 31%	Chair util 74% to 68%

Prescription

Pause acquisitions. Invest in talent pipeline first. Centralize operations. Divest underperformers.

For PetVet specifically, the [PetVet Deep Dive] quantifies a $60-90M intervention that could recover $800M-$1.6B in enterprise value.

Sources: PetVet & 123Dentist management reports · Internal operational audit · AVMA workforce projections · CADS dental utilization benchmarks