The dental industry is changing fast. If you’re a practice owner considering selling, expanding, or partnering then understanding DSOs, private equity, and practice valuations isn’t optional anymore.
That’s why Dr. Mark Costes, Dr. Bill Keith, and Dr. Ben Kacos hosted their own DSO Crash Course that broke down what it really means to evaluate your options in today’s consolidating market.
Key Takeaways:
- Valuations are shifting: Traditional doctor-to-doctor sales often cap at 80% of collections, while PE-backed DSOs base valuations on EBITDA, sometimes netting twice or more compared to a traditional sale.
- Your practice might be too big to sell to another dentist: If your collections are $2M or higher, a DSO may be your only viable buyer.
- Not all DSOs are created equal: Culture fit, contract terms, and long-term strategy are just as important as the upfront offer.
- Cash today vs. income tomorrow: You’ll need to plan for changes in your take-home pay if you stay on post-sale.
- Selling isn’t always an exit. It can be a launchpad: The right partnership can fuel growth, reduce personal risk, and create diversification without walking away from clinical dentistry.
Action Steps for Practice Owners:
- Determine your numbers: Analyze your EBITDA accurately. Guessing won’t cut it.
- Clarify your goals: Do you want autonomy? Growth? Expansion? Early retirement?
- Learn who you’re dealing with: Vet your potential partners thoroughly. Don’t just go with the highest number.
- Assess the market timing: Consolidation is accelerating. Waiting may mean lower future valuations.
DSN Members: Catch the Replay
If you missed the live session, exclusive replay access is available now inside DSN. Rewatch the entire DSO Crash Course at your convenience and revisit insights on practice valuation, deal structure, and timing your transition.
Why DSN Matters Right Now
Whether you’re thinking about selling, growing, or simply positioning yourself for the future, you need a trusted network of experienced practice owners beside you. DSN offers:
- Mentorship from dentists who have built practices and sold to DSOs
- Real-time answers about valuations and deal structure
- Access to over 750 ready-to-use documents, scripts, and deal prep resources
- 200+ hours of CE on acquisitions, leadership, operations, and more
Join today for a 7-day free trial and receive access to this DSO Crash Course along with our digital operations manual and the support of a dentist-only community.
Until next time,
The Dental Success Network Team
