Dental support organizations have become an extremely popular investment vehicle in the past two decades, McGuireWoods writes.
The DSO business model continues to thrive and grow, in large part because of the vital support DSOs provide to dentists in managing their administrative, day-to-day business responsibilities. As the demands from the practice of dentistry grow, there is a steady move toward consolidation into larger organizations with better access to capital and efficiencies of scale.
While emerging DSOs may be backed by traditional lenders or private investors, the growth of larger DSOs is fueled specifically by private equity firms. Anecdotally, there are more than 100 (and probably closer to 200) private-equity-backed DSOs in the industry today. Read more.
