The dental service organization (DSO) model has grown substantially over the last two-plus decades, and the American Dental Association predicts DSOs will experience a growth rate of nearly 100% between 2018 and 2025 and more than triple their market share by 2035, Forbes reports.
When selling a practice to a DSO, there is a range of factors for dentists to consider beyond just the asking price. By carefully examining all the components involved as well as valuation, both parties can determine if the acquisition is going to be mutually beneficial in terms of work culture, technological compatibility, administrative and operational expectations and scalability.
If the sale to a DSO has been initiated by a dentist who is planning to retire a year or two after the acquisition, getting the most valuation for many years of hard work is typically a top priority in the negotiation process. But legacy may be an important factor as well, aligning with a group that will maintain or even enhance the reputation of the practice going forward, even after the doctor has retired. Read more.
