Once a DSO gives you a Letter of Intent …

It means, on the surface, they like what they see in your practice and have an intent to buy it for a certain price.

If you checked out my description of the deal journey in my book “Everything DSO” - {here} - then you may recall that after giving you a letter of intent, they go through a bunch of due diligence.

And if what you presented (what they based their initial letter of intent upon) lines up with reality, you’ll be golden.

Getting to this point, and then NOT getting a final offer from the DSO (because they backed out) can be disappointing.

In the next couple emails I’m going to share the two main reasons that a DSO might back out after giving a letter of intent.

But first …

Understand that to GET to the letter of intent in the first place, you generally have to pass two filters.

Most DSOs operate with a geographic strategy in mind, so your practice might not be a good fit for a particular DSO just based on location.

Second, DSOs look for a particular profile in the practices they acquire. This is a combination of revenue, profitability, size, and other factors …

If you don’t fit their profile, they won’t have an interest.

So assuming you get past those two filters, and get a letter of intent, we’ll explore the two main reasons a DSO may back out of a deal …

Starting in the next email.