DSO deep dive: Should dental practices be feeling the pressure to sell?

Judging by the number of eyeballs that read Kim McCleskey's latest article titled "Halfway through the dental consolidation wave, here's what entrepreneurs need to know," there is plenty of interest in not only what is happening currently with dental service organizations (DSOs) but also if now is the right time to sell.

While there are plenty of options for dentists other than selling their practices to a DSO, McCleskey broke down the importance of the current economic climate and what it means for dentists.

Kim McCleskey.

"Currently, the dental industry is about 35% consolidated, with our industry experts projecting that it will reach the full 60% to 70% consolidation within the next five years," McCleskey wrote in her article.

"Once we reach this point, the majority of practices will be owned by DSOs, marking a fundamental shift in the ownership landscape. The market is expected to stabilize after this period, reducing practice sale values, which is why it's important for dentists to understand their options now," she added.

With that in mind, I wanted to ask McCleskey if there was pressure on dentists to sell now versus potentially waiting. That was the basis of our talk in our latest podcast, which you can hear by clicking below.

In the podcast, we discussed the dental consolidation wave and what dentist entrepreneurs need to know. McCleskey emphasizes the sense of urgency for dentists to consider selling their practices to a DSO or a group, as the options may change in the next few years.

She also highlighted the importance of treating a dental practice like a business and understanding its profitability and value. McCleskey provided insights on the steps dentists can take, such as consulting with a certified public accountant or engaging with a practice valuation company like Professional Transition Strategies. We also discussed the various options available for dentists who don't want to join or sell to a DSO.

You can hear our conversation by clicking here or by hitting the Play button below.