Article
Considerations to improve dental services organization transactions
July 28, 2025 · Authored by Ryan Petrucelli, Kim Hodson
If you’re considering buying or selling a dental practice or dental services organization (DSO), a successful outcome depends on navigating a variety of complex issues. It's also important to work with experienced advisors who can provide guidance and expertise throughout the process.
Three considerations can help you make better decisions on whether to buy or sell a business and smooth the transaction process: valuation, transaction-readiness, and due diligence.
Valuation
Valuation is a critical factor in any dental practice transaction. Several key elements impact the value of a DSO, including historical and forecasted financial performance, patient base, equipment and technology, and the management and provider teams.
- Financial performance. Buyers want to see a track record of consistent financial performance and future growth potential. They also want to understand the quality of revenues and earnings produced and how historical performance aligns with forecasted future performance.
- Patient base. A strong diversified patient base with a high retention rate and mix of insurance and self-pay payors is attractive to mitigate revenue concentration risk.
- Equipment and technology. State-of-the-art equipment and technology can be a significant differentiator. Buyers want to understand the technology infrastructure; age and condition of the equipment, software systems, and technology enablement; and any upcoming upgrades or replacements.
- Management and providers. Achieving alignment with management and providers to generate growth is an important factor in creating buyer value.
Transaction-readiness
Being transaction-ready is another critical factor in a successful dental practice or DSO transaction. Being transaction-ready means having a solid understanding of the value of your business, key business differentiators, and the ability to support your position with data. Additionally, advance preparation and organization of data, responsibilities, and timelines will allow for a smoother process.
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.