Have you heard that DSOs are BAD for the dental profession? understand the fear …

But I would argue it’s a fear of the unknown.

Let’s take a look at the facts.

Consider that DSOs have provided a lifeline for many dentists seeking eventual transition or monetization of their equity.

The truth today is that there are fewer dentists interested in or even able to buy a practice.

Today’s dental school grads are burdened by debt.

In 2019, dental graduates finished with an average educational debt of $284,000 (and how are THEY going to then buy a practice?).

We are also seeing many more of those graduating are women.

This isn’t itself a problem, though statistically, we can observe that women are less interested in practice ownership than their male counterparts.

That is not universally true, but it adds to the stats …

There is a growing shortage of new buyers, and this is running into the glut of baby boomer dentists interested in selling now or soon.

This is where a DSO comes in.

The DSO buying power is enabled by private equity investors whose interest is in consolidating fragmented industries in order to create economies of scale, increase efficiency, and improve profitability.

Because of the reasons listed above, DSOs have been the fastest-growing segment of the profession over the last 5-7 years, such that today approximately 20% of all dental practices are affiliated with a DSO.

And because DSOs value practices higher than traditional dental buyers, they have been responsible for more wealth creation for dentists than any other means over the last decade.