Whether you’re thinking about a DSO partnership now or just planning for a potential exit down the road, how you prepare today will directly shape your valuation, deal terms, and freedom in the years ahead.
In our latest DSN webinar, Dr. Mark Costes sat down with DSI Black Belt coaches Dr. Bill Keith and Dr. Ben Kacos to talk honestly about what it takes to position your practice for partnership.
Together, they’ve been on both sides of the table: as sellers and as coaches.
Here’s what they shared.
Key Takeaways:
- Size matters—but systems matter more. A 7-operatory practice is often the magic number, but even a smaller practice can earn top dollar if it runs efficiently, profitably, and independently of the owner.
- Keyman risk is real. If your practice relies solely on your clinical output or leadership, buyers will see that as a liability. Build team depth and leadership redundancy.
- DSOs want scalability and continuity. Can your practice grow? Will it keep running if you’re not there for a week, a month, or longer? These questions impact your valuation.
- $500K EBITDA is the tipping point. If you’re above it, your leverage and deal options improve dramatically. But below that, you’re less attractive to private equity—though not out of the game.
- Timing is everything. Waiting until growth stalls can hurt your upside. Peak EBITDA with future potential is the sweet spot for partnership deals.
Your Next Steps:
- Evaluate your operatory and provider capacity. Aim for 7+ ops and at least 2 doctors to minimize keyman risk.
- Build a practice that runs without you. Invest in leadership, systems, and team training to reduce dependency.
- Track your true EBITDA. Know where you stand and what levers to pull to get into the high-interest zone.
- Think ahead. Whether your exit is 2 years or 10 years out, start preparing now to maximize flexibility and value.
Let’s Talk About Your Transition Plan
If you’re even thinking about a DSO partnership or private equity deal in the future, let’s have a conversation.
DSN is full of real practice owners that can help you understand where your practice stands, how to increase its value, and what a smart transition path could look like.
This is your practice. Make sure it’s working for your future and not limiting it.
For your success,
The DSN Team
