The DSO Acquisition Playbook
DSOs are financial engineers. They look for scalable, profitable platforms. They avoid practices that require heavy turnaround work or rely entirely on a single charismatic doctor.
The Ideal DSO Target
- Revenue: $1.5M+ TTM collections.
- Facility: Modern, 5+ operatories, room for expansion, long-term lease secured.
- Staffing: Stable hygiene department generating 30%+ of total revenue.
- Transition: Owner willing to sign a 2-to-5 year employment agreement.
Frequently asked questions
Why do DSOs want the selling dentist to stay?
DSOs require the selling dentist to stay to ensure clinical continuity, retain the patient base, and maintain revenue while they transition management systems.
Will a DSO buy a small solo practice?
DSOs generally avoid practices under $1M in revenue unless they are executing a "tuck-in" strategy, merging the small clinic into a larger nearby hub.