Thinking About Selling To A DSO
If you've been approached by a Dental Service Organization (DSO) or are simply exploring your exit options, you're not alone. DSOs continue to acquire dental practices nationwide — but is it the right move for you?
Most practice brokers, especially the ones who only sell to DSO's, will not tell you the risks involved and provide honest guidance on the pros vs. cons when exploring a DSO sale or partnership.
At 1st Med Transitions, we help dentists evaluate all of their options, including DSO offers, private buyers, associate buy-ins, and group mergers. A DSO may be an ideal buyer if you’re seeking financial stability, operational support, and growth opportunities.
However, it's important to be aware that the DSO market has experienced a recent downward shift in valuations and deal structures. This evolving landscape underscores the critical need for a thorough and in-depth analysis of any offers you might receive.
Selling to a DSO isn’t the best choice for everyone, and understanding the pros and cons can help clarify if this path aligns with your vision.
Pros Of Selling To A DSO
Higher Potential Sale Price: DSOs often pay a premium — especially for practices with strong EBITDA — due to their financial backing and aggressive growth goals.
Operational Support: Selling to a DSO transfers administrative and operational responsibilities—such as HR, billing, marketing, and compliance—so you can focus on patient care.
Work Life Balance: You gain flexibility to continue practicing without ownership pressures, a balance that can be appealing if you’re looking to reduce your workload.
Equity Upside (in some deals) Some DSOs offer equity rollovers, allowing you to benefit from future growth or recapitalizations.
Potential Cons of Selling to a DSO
Not Every DSO is the Same: Some are excellent partners. Others are focused on rapid scaling, often at the expense of long-term success and stability.
Complex Deal Terms: Earn-outs, equity components, and multi-year employment agreements can complicate the transaction and reduce cash at closing.
Corporate Culture Shift: DSOs can introduce a more corporate structure — which may not align with your personal or patient care philosophy.
Cultural Shifts In The Practice: A DSO may bring changes in practice culture, impacting patient interaction, treatment protocols, and even the overall workplace environment. This can be a challenging adjustment for your staff and loyal patients.
So, Should You Sell to a DSO?
The answer depends on your goals — financial, clinical, and personal. At 1st Med Transitions, we help our dental clients:
- Evaluate DSO offers vs. private buyer opportunities
- Negotiate better terms
- Understand the long-term impact of each path
Our Role in Your DSO Transition
Selling a practice to a DSO is a significant decision, and our experienced team is here to support you through every step. Before making a life-changing decision, get a free confidential consultation from the DSO experts at 1st Med Transitions. We’ve helped hundreds of dentists navigate the sale process — including DSO and private sales — and we’ll give you unbiased guidance tailored to your situation.
Call us today or click below to schedule a no-obligation consultation.
To get started, complete our DSO Sales Consultation Form Here and you can schedule a call with one of our DSO Transition Advisors.