CONSIDERING SELLING TO A DSO (Dental Service Organization)?
Here are some of the questions that dentists often ask us…
Will the DSO want me to work for it after the sale closes?
DSO’s generally want the seller to stay and work for a minimum of 2 years after the closing. You probably will be earning less money than when you owned the dental practice yourself. Remember, you probably are not going to be receiving profits from the hygiene department.
Will the DSO pay a premium for your practice as opposed to an individual buyer?
In the most cases the DSO will pay more than an individual dentist will pay for your dental practice. Depending on the characteristics and desirability of your dental practice, it can be substantially more.
Will the DSO pay me 100% at the closing?
In most cases when a DSO purchases your practice, they will want a hold back of 10-40% of the purchase price. This holdback will be released over the term of the seller’s employment.
Will the DSO want to purchase my building as well?
We have found that DSO’s are not interested in buying real estate. They do not want to be in the real estate business and much rather have long terms office leases in place.
Do I need a practice broker to negotiate the sale of my dental practice to a DSO?
YES! There are many DSO’s and emerging DSO’s They have very different requirements for their purchase. A seasoned practice broker will know the various DSO’s, who is offering the most favorable terms, and who is the easiest to work with during process and after the sale closes.