industrypro reverse logo

Selling My Dental Practice

three buying scenarios

dental line reverse
dentist

What are the three main ways I can sell my dental practice?

As a practice owner, you’ve got options. There are a few different types of buyers who could be interested in acquiring your thriving dentist practice.

In this article, you can review the top three buying scenarios for your practice and some information on what would make each scenario a fit for you.

There are three different parties that typically purchase dentist practices.

Here are the top three buyers looking to partner with you:

You can sell to a DSO (Dental Service Organization)

This is the most common choice for most practice owners. The reason that selling to a DSO is the most common way to sell your dental practice is because it’s often a win-win partnership for all involved.

When you merge with a DSO, your dental practice gets nested under a singular platform or umbrella company. Your company becomes part of a network of companies within the DSO.

The DSO takes over all the back-end and administrative tasks that your individual office is currently managing, everything but chairside services. By doing this, efficiencies are created. You can get more patients in your practice, focus on providing patient care, and step back from the managerial challenges that so many practice owners face.

The outcome?

Since these organizations will take a lot off your plate while bringing a ton of value, this makes them an attractive choice if you’re looking to sell all or part of your practice, all at once or over time.

If you roll equity, more often than not, your practice grows by a multiple.

Group

Whether you own one office or many, if your practice is grossing $5M+ in revenue each year, exploring a partnership with a DSO can be one of the most life-changing and legacy creating moves you can do for yourself, and your enterprise.

If you’re curious if we have a buyer for you or you want to pick our brains about the multiple you can receive for your business right now, learn more on how you can book a no-strings-attached session with a dealmaker specialized in the dental space.

You can sell to a Private Equity Group (PEG)

Understanding  the difference between a DSO and a PEG can be a little confusing. A DSO is also a private equity group, backed by private equity. If you sell outright to a PEG—the big difference is that your office might become the platform investment. A platform investment is essentially a starting place for other acquisitions or add-ons in future. This means your future partners might not have a group of other practices to merge you with (which is the case with a DSO). Nonetheless, these PEGs typically have ample experience in your industry and have potentially even exited a DSO before, which is why they want to buy all or part of your practice.

Accordingly, partnering with a Private Equity Group (PEG) can have really similar benefits to a merger with a DSO. Partnering with a PEG can be very lucrative for all involved.

Important Note

A common misconception dentists have is that PEGS or a DSO will take over and the owner will no longer have a say. This is simply – not true. If you stay on as a partner, DSOs and PEGs have no say over how you practice chair-side.

Another misconception is that some dentists believe that an M&A event will mean losing staff or layoffs to people who you’ve grown with. This is also not true. In fact, most PEGs and DSOs will mandate that your staff stays on! It’s part of the reason they want to work with you— for your well-fitted team.

You can sell to a Private Dentist or Strategic Individual Buyer:

The last option we see dentists partnering with is a strategic individual buyer. This means that another dentist or person might want to buy your practice outright. This might be a recent graduate looking to kickstart their career. This could be a seasoned dentist who is a few blocks away from you looking to expand their territory. This way forward might be the best for you if you’re doing under $2M in topline revenue each year.

Whether you’re selling to a DSO, a PEG, or an Individual Buyer, you have options!

You can sell your practice outright and wipe your hands clean of it. OR, you can stay on as a partner for a few years and enjoy the benefits of two exits (this means cash in hand now for a portion of equity, and potential cash later for a second buyout).

We call this taking the “first” and “second” bite of the apple.
You can read more about that, right here.

apple

What’s next?

Vector

If you made your way through this article and your practice grosses over $5M in revenue each year, it’s likely we already have an interested buyer we can connect you with. If you have a smaller practice, we can provide you with resources to support. 

The good news? At no cost to you, we will introduce you to a buyer and support you with advisement along the way.

You are the throughline in everything we do. At IndustryPro, the only deals we do are the deals done right by you. 

Book a No Strings Attached Call to see if we have the right buyer introduction for you.

Payton

Payton Anderson

Let’s Connect

Here’s what you can expect on our 30-minute session about your path to exit: