What Is a DSO?

Corporate groups, such as private equity firms, dental service organizations (DSOs) and dental partnership organizations (DPOs), have recently emerged as viable and profitable options in the practice sales space. These groups aim to relieve owner-doctors of the operational and managerial responsibilities of running a business.

Is a DSO Right For You?

Group practice may be right for you if:

You still desire to practice dentistry clinically.

Most DSOs require a three- to five-year workback period, so these sales aren’t the right fit if you are looking to retire or exit your practice quickly.

You’re overwhelmed by the operational and management side of dentistry.

DSOs will take over tasks such as bookkeeping, managing benefits, running payroll, staffing, marketing, ordering supplies and handling repairs, so you can focus on what you do best–providing quality care to your patients.

You want to maximize your practice value.

We are currently in a peak market where dentists can receive valuations of 100 to 120 percent of their revenues, sometimes up to 200 percent from DSOs.

How To Navigate DSO Transactions

If you have been contacted by a DSO or another corporate group, we strongly recommend that you refrain from responding to unsolicited offers or attempting to negotiate a deal without proper representation. These transactions are complex with unique pricing and equity structures. To protect your interests, you must have a trusted advisor by your side to help you review the offer and secure favorable terms should you decide to proceed with the sale.

Why Choose Menlo

Though Menlo Dental Transitions does not advocate for one type of sale over another, our team has worked hard to build strong relationships with local, regional and national DSO buyers and private equity firms, so we can present you with a variety of opportunities when it comes to selling your practice. We will help you evaluate your options to find the right fit.

In the last 12 months, Menlo has represented dentists in DSO transactions valued at over $55 million, and we have the experience, connections and knowledge to ensure that you are in control when it comes to DSO sales. Our goal is to help you receive the maximum value and most favorable terms for your business, so you can walk away from the transaction and your practice with confidence.

Additional Resources:

Should I Sell My Dental Practice to a DSO or a Private Buyer?
What to Ask a DSO Before You Sell