DSO Blog

Don’t Miss Out on the Dental Buying Frenzy!

Written by Everything DSO | Nov 12, 2024 4:35:35 PM


Dear Reader,

Right now, DSOs are on a buying frenzy, and if you’re a dental practice owner, this should grab your attention. There’s a tidal wave of change happening in the dental industry, and it’s reshaping the landscape for dentists like you. Whether you realize it or not, this frenzy is driven by several industry-disrupting factors that are creating once-in-a-lifetime opportunities for practice owners.

The first thing to understand is that the business of dentistry is changing. DSOs—Dental Service Organizations—are snapping up practices left and right. Why? Because they see what many dentists don’t: dental practices are a goldmine of consistent, recession-proof revenue. People will always need dental care, no matter the economy. But it goes deeper than that.

What’s Driving the Frenzy?

There are several factors at play, and it’s important to know what they are because they could mean huge opportunities for you.

  1. Investors Are Hungry for Yield

We’ve all seen what’s happening in the broader economy. Traditional investments like bonds, treasury bills, and even stocks aren’t delivering the returns they once did. Wall Street is desperate for high-yield opportunities, and they’ve figured out that dental practices are one of the most profitable, consistent sources of income out there. The yield a well-run dental practice generates far outpaces anything a typical investor could hope to get from bonds or savings accounts. They’re seeing double-digit returns, and that’s why DSOs are in a buying frenzy. They want to tap into those profits—and they’re willing to pay big money to do it.

  1. Dentists Are Retiring in Record Numbers

There’s another factor you can’t ignore: a huge wave of dentists is hitting retirement age. Many practice owners are looking for an exit strategy, but they don’t just want to close the doors and walk away. They want to sell for maximum value while preserving the legacy they’ve built. DSOs provide the perfect solution—offering life-changing payouts while keeping the practice running, often with the dentist retaining a stake and staying on to continue working chairside.

This massive turnover is driving DSOs to snap up as many practices as they can before the competition does. It’s a seller’s market, and if you’re thinking about selling, this frenzy could work in your favor. DSOs are willing to outbid each other for quality practices, and that means more money in your pocket.

  1. The Economics of Scale

Here’s something else to consider: DSOs aren’t just buying your practice—they’re supercharging it. By consolidating multiple practices, they create massive economies of scale. They can negotiate better deals on equipment, supplies, marketing, and insurance, which drives up profit margins. And those savings don’t just benefit the DSO—they make your practice even more valuable.

What does that mean for you? It means DSOs are willing to pay premium prices for your practice because they know they can make even more money on the back end by streamlining operations. You get a big payout, and they get a practice that’s poised to deliver even higher profits in the future.

  1. Dental Market Disruption

The entire dental industry is undergoing a massive disruption. DSOs are on track to own 50% to 65% of all practices in the next few years. This is not just a trend—it’s a seismic shift. Independent practice ownership is becoming rarer, and DSOs are taking over because they’re better equipped to handle the business side of things, allowing dentists to focus on patient care.

For you, this means there’s never been a better time to sell. DSOs are in aggressive expansion mode, and they’re looking to buy well-run, profitable practices like yours before the market shifts even further. If you’ve ever thought about selling, the time to act is now, while demand is at its peak and prices are through the roof.

What Does This Mean for You?

Here’s the bottom line: DSOs are in a buying frenzy because they see what’s coming. They know that owning dental practices is one of the best investments they can make right now. They’re driven by high-yield returns, the opportunity to scale, and the chance to take advantage of this major disruption in the dental market.

For you, this creates a huge opportunity. You’ve worked hard to build your practice, and now it’s time to consider how much it’s truly worth. DSOs are ready to pay top dollar for what you’ve built, and if you play your cards right, you can walk away with a life-changing payout—all while potentially retaining equity and staying on to continue working, but without the stress of running the business.

If you want to know more about how you can take advantage of this once-in-a-lifetime opportunity, you need to talk to Everything DSO. We can help you understand exactly what your practice is worth in today’s market and guide you through the process to make sure you get the maximum payout and the best deal possible. Contact Everything DSO today, and let’s explore what your future could look like.

Sincerely,

Your Team at Everything DSO