Have Questions?  (800) 815-0590
Sell My Practice

Maximize Your Value When Selling To A DSO

Thinking of Selling or Affiliating with a DSO Group? Don't go at it alone. At 1st Med Transitions, we know that Selling to a DSO without the right expertise and guidance can be a daunting task. There are a number of factors to consider and our Advisors are well aware of the benefits and the pitfalls to avoid. As the DSO market has grown, so has our relationships with local, regional and national DSO and Private Equity firms.

When selling to or affiliating with a DSO, you have the potential to gain a much larger selling value for your practice than in a traditional doctor-to-doctor transaction. We have seen as much as 125% to 300% of yearly collections. However, it is important to keep in mind that there is more to a sale, than just the price. A DSO transition will typically require a seller to continue to work at the practice post sale for a pre-determined amount of time (usually 2 - 5 years). This length of time will also affect how the sales price is disbursed to the seller.

If you have a larger practice, there is a good chance you have already received unsolicited offers or been contacted from DSO buyers attempting to negotiate with you directly. We understand this can be tempting, but there is a chance that you will be missing out on more favorable deal terms/structure and a higher overall sales price. Partnering with or selling to a DSO is an enormous decision for a practice owner and not something you should go at alone.

When you sell to a DSO with 1st Med, we make sure to walk you through every step of the process.

STEP #1  Sales Consultation

This is the first and most important step in the process. We will discus your goals, objectives and timeline for sale and of course, answer any questions you may have. We will asses your current situation and determine if your practice is a good DSO candidate. We'll inform you on what DSOs are looking for and the different deal structures we are actively seeing in the marketplace.

STEP #2 EBITDA Practice Valuation (no cost)

If we think you are a good DSO transition candidate, your transition advisor will request financial's, practice reports and a practice profile to be provided. We will work with you to determine a current EBITDA valuation as this is the main metric DSOs use to value your practice. Many of our industry competitors charge between $7K and $15K for their EBITDA analysis. At 1st Med, we never charge up-front fees and only earn our commission when your practice is sold!

STEP #3 DSO Outreach

We'll package and confidentially present your dental practice in a professional manner to potential DSO buyers. Our goal is to maximize the interest and pool of potential buyers for your dental practice. The more competition we can generate, the higher the potential for sale and maximum enterprise value.

STEP #4 Review Offers

One of the most overlooked part of the Dental Practice Sales process is the sales negotiation. We'll assist you in reviewing multiple offers and help determine which is the best fit for you personally and your practice moving forward. Remember, not all offers are created equal and the same goes for DSOs.

STEP #5 Due Diligence

Once you have determined the best deal structure and culture for your practice, we'll accept the LOI and move into Due Diligence. The difference between a closed transaction and a failed one, can many times comes down to the attention to details. DSO Buyers are more sophisticated than independent doctors and the due diligence process is typically more thorough. We will work with the buyer on quality of earnings, detailed practice reports, and sales contract negotiations.

STEP #6 Closing

There are a number of aspects that lead to a successful closing - deal structure, non-competes, escrow, representations and warranties and transitions agreements. We stay on top of every step in the process from the marketing, letter of intent, due-diligence to the purchase & sale agreement and ultimately closing.

If you are considering selling your dental practice to a DSO, or just want to get a sense of what a potential DSO sale would look like for you and your practice, we would be happy to discuss further.

To get started, complete our DSO Sales Consultation Form Here and you can schedule a call with one of our Senior Transition Advisors.

Why Sell With 1st Med?
  • Free EBITDA Analysis
  • Save With 5% Commission
  • Get 6x to 10x Multiples
  • DSO Transition Experts
  • Access 90+ DSO/Private Groups

Have Questions?

Our Transition Advisors are happy to answer any and all of your questions.

Michael S. Furlong

Senior Transition Advisor


(800) 815-0590
All Discussions Are 100% Confidential


Our Featured Articles
30 +

years of industry experience

265

satisfied clients and counting

$295 Million

in closed practice transactions

Testimonials From Recent DSO Sellers

  • Dr. Dennis Norkiewicz, DDS

    Sold / Affiliated With A DSO

    "Mike and his team know the business very well and they take good care of their clients.

    I would definitely recommend using 1st Med Transitons if you are in the market to sell to a DSO."

  • Dr. Najib Adi, DMD

    Sold / Affiliated With A DSO

    "The professionalism, patience and tolerance David demonstrated... was remarkable.

    His commitment to our practice well-being and our professional future well-being was truly unmatched."

  • Dr. Gary Adams, DDS

    Sold / Affiliated With A DSO

    "Michael did a wonderful job of explaining to me the process,

    introducing me to a variety of different groups and helping me to find the best fit and value for my situation. "

  • Dr. Steven Booth, DDS

    Sold / Affiliated With A DSO

    "I had a great experience with 1st Med Transitions selling my dental practice to a DSO.

    David was very attentive the entire process and was great at negotiating the price and some other contested issues."

Our DSO Sales Process

GET STARTED
  • 1

    Initial Consultation

    Complete our Sales Consultation Form Here and one of our Senior Transition Advisors will contact you to discuss your current and long-term goals and learn more about your pracitce.

  • 2

    Free EBTIDA Valuation

    Our Senior Transition Advisor will work with you to review your financials and PMS reports to determine an accurate EBTIDA Analysis. With your input, we will determine a valuation multiple expectation and preferred DSO strucuture to meet your future / exit planning goals.

  • 3

    DSO Outreach & Negotiations

    We will confidentially market your practice for a DSO sale / partnership through our preferred DSO contacts and maximize your value by generating as much interest as possible!

Questions?

Ask A DSO Expert?

To speak with a Senior Transition Advisor Call Us: (800) 815-0590 or

Click Here To Get Started