I’ve found it helpful for some dentists to understand WHY DSOs are growing the way they are, and more importantly …

Why the investors are so interested in dental businesses.

The short answer is “yield.”

Investors love being able to place their money into something which yields them more money …

Without getting too deep into investments, this might be opposed to putting your money in stocks where you are dependent on the value of your stock increasing for your investment to increase.

Back to dental practices …

A well-run dental practice produces a great margin compared to other businesses.

AND, through economies of scale which DSOs are able to achieve with consolidation …

A well-run DSO can entice investment which yields a huge amount of profit for all those invested.

This is investment heaven for private equity firms.

You can take advantage of these investors who are hungry for secure places to put their money which will yield them more money …