The Impact Of Selling To A DSO – A Survey Among Dentists.
If You’re Asking: Should I Sell My Practice to a DSO
You Need to Read This.
Should I sell my practice to a DSO should be the last question you ask and if you do find yourself asking it hopefully its towards the end of your dental career. Dental Service Organizations are gaining traction, more and more dentists are choosing to become DSO affiliates. There’s enough information to allow us to make projections for the future of this rising trend. Here are a few of insights we know today thanks to Connect the Dents (a mergers and acquisitions advisor):
The percentage of dental practices in the U.S. that are currently affiliated with a DSO range between 18% and 22%. How are these numbers going to change in 2023? Is 30% to 40% an accurate projection? So, whether or not you’re asking yourself: Should I sell my practice to a DSO or not these survey results will give you some insights on how this choice has affected others.
Currently, there are over 900 DSO options. About half of all dental school graduates in 2020 will work in one of these affiliated dental clinics.
As dental practice-valuators Connects the Dents express concern over the thoughts and feelings of dentists after selling their practices to a DSO.
Their survey included about 125 dentists who sold their practice to a DSO (Why it’s important to ask: Should I Sell my Practice to a DSO)
How did you learn about the DSO you affiliated with or sold your practice to?
Mergers & Acquisitions advisor or broker — 32%
A colleague told me about this opportunity — 22%
The DSO contacted me via email, telephone, social media — 18%
I researched the available opportunities and reached out to the DSO myself — 17%
Met them at a trade fair or business conference — 9%
Other — 2%
Are you still working in your office?
Yes — 88%
No — 12%
Are you happy with your choice to sell/affiliate your practice?
Yes — 84%
No — 16%
If you answered yes, what was the thing you liked the most?
The financial compensation/ The opportunity to roll over a percentage of the price into DSO shares — 54%
I don’t have to put up with managing the business — 25%
The guidance and advice I received in finding the right DSO and closing the deal — 17%
The money I earn as an “associate” — 4%
If you answered no, what could you have done better?
Negotiate a higher price — 35%
Not using a regular broker — 30%
Ask for an opportunity to invest back into the DSO — 15%
Get a more exhaustive appraisal of my practice — 15%
Negotiate a higher compensation as an associate — 5%
What are your takeaways from the results of this survey?
If you think about the opportunity of selling your practice, we would advise you to find out what it is truly worth, and what would your available DSO options are. There are many types of DSOs out there, so you should do your best to find the ones that best suit your personal goals.
According to the survey results, you have high chances of being happy with your decision, whatever it may be.
The ideas and observations expressed in this article don’t necessarily reflect the opinions of OneMedAll. They aren’t intended to endorse or admonish any idea, vendor or another type of organization.
We hope this article helped you a lot. If you’re looking to learn more about how to help your practice grow – don’t forget to download our FREE 43-page Report on Increasing Case Sizes and Collections.