Anyone with a successful practice can usually find a Dental Support Organization (“DSO”), to buy their practice. However, there’s an art to picking the right DSO for each doctor. Because choosing the right dental support organization is one of the most important decisions a doctor interested in selling to a DSO will make, here are some key tips to help you make the best decision.

  1. A great dental practice broker who truly understands the dental industry and your practice is critical to the process of making the best possible decision. Hiring such a broker will help lead you to a DSO that best fits your particular needs and also shop your practice to a wide range of DSOs. Once you’ve identified a potential buyer, a broker can help you negotiate the enterprise value — and if you have multiple offers, they can help you negotiate the best deal.
  2. Examine your goals and needs going forward after the sale. You will want to consider these questions: Are you selling to a DSO because you want the most money you can get? If money is secondary, is first and foremost the DSO buyer the best fit for you? Will the DSO let you run your practice as you always have? Do you want to work for just a couple of years when most DSOs will compel you to work for at least five years? Are you looking for a DSO that will do a joint venture where you will retain equity? Or will you sell your practice and take equity in the larger DSO? Your legal counsel can assist you in identifying the pertinent factors that should be taken into account to mitigate any potential issues in the future.
  3. Examine what level of risk you want to take. DSOs with a proven track record and past recapitalization are likely to adopt a more conservative approach. This may result in a lower potential upside but also entails reduced risk. Alternatively, are you inclined to accept greater risk with a less experienced DSO lacking substantial capitalization? In both business and life, embracing higher risk often leads to greater rewards.

Our clients rely on us to provide guidance in navigating these matters, ensuring that their decisions are well-informed and in line with their long-term objectives. Given the significance of these decisions, it's imperative to approach them with thorough consideration rather than rushing into them hastily.