Dear Reader,
You’ve put in the work. You’ve built a successful dental practice with your own two hands, and now, you’re hearing the buzz about Dental Service Organizations (DSOs). They’re sweeping the industry, acquiring practices left and right, and offering sums that would make any dentist’s jaw drop. But before you leap at the chance to sell, you need to understand one critical thing: What do DSOs really want, and how can you position yourself to attract the best possible offer?
DSOs aren’t just buying any practice—they’re looking for specific traits that align with their strategic goals. Knowing what these are can make the difference between an average offer and a life-changing one.
- Profitability – The Core Metric
Let’s cut to the chase—DSOs are businesses, and like any business, they’re in it for profit. The most critical factor DSOs look at is your practice’s profitability. They want practices that are already generating solid profits because this indicates a lower risk and higher return on their investment. If your practice shows strong earnings, you’re already on their radar.
But here’s the kicker—DSOs don’t just want to see numbers. They want to understand the sustainability of those profits. Are they based on one-time windfalls, or is your revenue stream steady and predictable? Practices with a proven track record of consistent profitability are far more attractive and will command higher offers.
- Scalability – Room to Grow
DSOs are all about growth. They’re not just buying your practice; they’re buying the potential to expand it. They look for practices that can scale—whether that means adding more patients, expanding services, or even opening additional locations. If your practice has the infrastructure, the systems, and the market position to grow, you’re sitting on a goldmine.
Consider this: Is your practice set up to handle more patients without compromising care? Do you have room to add more chairs, or is there potential to expand your physical space? The more growth potential you can demonstrate, the more appealing your practice will be to a DSO.
- Location – Prime Real Estate
We’ve all heard it—location, location, location. And for DSOs, this couldn’t be truer. They want practices in prime locations with easy access for a large patient base. If your practice is situated in a high-demand area with little competition, you’re in a powerful position.
But even if your location isn’t a bustling urban center, don’t despair. DSOs also value practices that serve underserved or growing markets. If you’re the go-to practice in a rapidly expanding suburb or a community with few other dental options, you’re just as valuable.
- Operational Efficiency – The Well-Oiled Machine
DSOs don’t want to buy a headache—they want to buy a smoothly running operation. This means they’re looking for practices with efficient systems in place. Scheduling, billing, patient management—everything should run like clockwork. If your practice is a well-oiled machine, it’s more attractive because it’s easier to integrate into their larger network without major disruptions.
Ask yourself: Are your processes streamlined? Is your staff trained to handle the administrative load efficiently? Practices that operate with precision are far more enticing to buyers looking for seamless acquisitions.
- Strong Patient Base – The Loyalty Factor
Your patients are the lifeblood of your practice. DSOs know this, and they’re keenly interested in practices with a loyal and growing patient base. They want to see a solid number of active patients, with retention rates that indicate those patients aren’t going anywhere.
Patient loyalty is a massive selling point because it means steady revenue. If your practice is known for exceptional care and has built a reputation that keeps patients coming back year after year, you’ve got something DSOs will pay a premium for.
How to Position Yourself for the Best Offer
Now that you know what DSOs are looking for, the next step is positioning your practice to meet—or exceed—their expectations. Here’s how:
- Optimize Your Financials
If your practice’s financials aren’t in top shape, now is the time to get them there. Work on boosting your profitability, cutting unnecessary expenses, and ensuring that your revenue streams are solid and sustainable. A clean set of books will not only attract more interest but also drive up the value of your practice.
- Showcase Your Growth Potential
Demonstrate to potential buyers that your practice isn’t just successful—it’s poised for even more success. Highlight any plans for expansion, new services, or untapped markets. The more potential you can show, the higher the offer you’re likely to receive.
- Streamline Operations
Take a hard look at your practice’s operations. Are there inefficiencies that could be ironed out? Could your staff benefit from additional training? The smoother your operations, the more attractive your practice will be to a DSO.
- Strengthen Patient Relationships
Focus on building and maintaining strong patient relationships. Implement loyalty programs, enhance patient communication, and ensure that every patient who walks through your doors feels valued. A strong, loyal patient base will significantly increase your practice’s value.
Imagine selling your practice for a sum that allows you to live the life you’ve always dreamed of—whether that’s retiring early, traveling the world, or investing in new ventures. Imagine looking back and knowing you secured the best possible future for yourself and your family.
Now, imagine the opposite: Selling for less than your practice is worth because you didn’t take the time to position yourself properly. It’s a choice that could impact the rest of your life.
At Everything DSO, we’ll guide you in optimizing your practice to attract the best offers and ensure you’re positioned to benefit from everything DSOs have to offer.
Your practice is your most valuable asset—don’t sell it short. Contact us today to discuss how you can position yourself to attract the best possible offers from DSOs. We’re ready to help you secure the future you deserve.
Your Team at Everything DSO
