DSO Deals: Key Takeaways from the Dykema Conference

Considering a DSO Option? Here’s What You Need to Know

DrillDown Solution President Ed Gabriel recently attended the Dykema DSO Conference, where over 2,500 dentists and industry leaders gathered to explore the latest trends in the dental service organization (DSO) space. If you’re thinking about the DSO route, these insights are a must-read.

TUSK Practice Sales hosted an outstanding full-day session focused on helping selling dentists achieve the best possible DSO deals. Their expertise was clear, and the takeaways are invaluable for anyone navigating this complex market:

• The frothy rush to buy EBITDA is over. DSOs are now focused on well-run, profitable practices.

• Fewer deals in 2024. Higher interest rates slowed activity, and some DSOs have struggled.

• Know the financial strength of the DSO courting you. Stability matters.

• DSOs are focusing on “same store” growth. Improving existing practices is more important than expanding quickly.

• Second opportunities for dentist equity are slow. Recapitalization can take years.

• Partnership-style deals are trending. Dentists often retain ownership—40% equity is common.

• Seller financing still exists. Terms vary by deal.

• DSOs want control, not competition. Never accept the first offer—they may try to fatigue sellers.

• Engage an advisor early. Expert guidance is critical before signing anything.

• Leverage comes from choice. Your strongest position is, “I don’t need a deal.”

• Multi-location integration adds value. Systems and operations matter.

• One location done well can be more profitable than multiple locations.

• Staff turnover hurts valuation. Stability is key.

• Pick growth levers that fit your practice DNA.

• Deal valuations can be manipulated. Understand the numbers before agreeing to terms.

For dentists considering a DSO sale or partnership, these insights provide a clear roadmap for making informed, confident decisions.

Start with a free practice valuation from TUSK Practice Sales or contact the team at [email protected] today!