Mapping the Acquisition Hotspots
Not all practices are equally desirable. DSOs use strict demographic and financial criteria to select their targets, focusing heavily on population influx and payer mix.
Top Criteria for DSOs
- High population growth and favorable state tax environments.
- Low reliance on Medicaid; high PPO and Fee-For-Service (FFS) mix.
- Practices with existing associate dentists to ensure clinical continuity.
Frequently asked questions
Are DSOs buying smaller practices in Florida?
Generally, DSOs target practices over $1M to $1.5M in revenue, though they will acquire smaller clinics as "tuck-ins" if located near an existing flagship office.
Why is the I-4 corridor so popular for dental M&A?
The Tampa-to-Orlando corridor offers explosive population growth, strong economic indicators, and a highly fragmented market of independent dentists ripe for consolidation.