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Are you a strong candidate for DSO affiliation? Need Link

Nov 16, 2022 4:00:15 PM / by Everything DSO

So, you might be wondering how you can make yourself appealing to a DSO.

Or perhaps rather …

What are the characteristics of a strong candidate for affiliate with a DSO?

There are some things which DSOs are really looking to avoid.

If you are operating a practice which is underperforming and hoping that a DSO will “fix” your business …

I’m sorry to say that you’ll probably have a hard time.

Most DSOs are looking for practices with a strong history of growth and profitability, with strong reputations and brand identities.

If you have a larger practice with multiple practitioners you’re in an even better position.


This is because single-doctor practices represent a greater level of risk. (That doesn’t mean single doctor practices DONT get purchased by DSOs)


If you want to transition your practice and walk away, then you are not a candidate for
DSO affiliation, as they usually want you to remain for at least three years post-transaction.


They also typically don’t like to buy practices which are in need of significant capital expense, like updating or renovating a facility.


The ideal candidate is a mid-career dentist with associates, with great patient reviews and reputation who is interested in growing and sees value in a relationship with a capital and operating partner. If you have multiple locations, even better.


But,


If you don’t fit the perfect mold, don’t be dissuaded. You might need to adjust your expectations a little, or reframe your personal approach. It’s important to be aware of where you stand when trying to find a good DSO partner.


Curious how you shape up and what kind of partnership you might be able to get?


Click below to schedule a meeting with me, we’ll talk it through.


Everything DSO

Written by Everything DSO

 Stan Kinder

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